CryptoNewsBreaks — Stronghold Digital Mining Inc. (NASDAQ: SDIG) to Extinguish Convertible Notes Through Exchange Agreement

Stronghold Digital Mining (NASDAQ: SDIG), a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations, has entered into an exchange agreement with the holders of the company’s amended and restated 10% notes. According to the announcement, the result is that the approximately $17.9 million of outstanding principal amount of debt and interest will be extinguished in exchange for shares of a new series of convertible preferred stock; the face value of the new shares will total an estimated $23.1 million. The closing, which is subject to customary conditions, will occur as soon as practicable following the satisfaction or waiver but no later than Feb. 20, 2023. “We are pleased to announce another deleveraging transaction that is expected to materially reduce our debt, strengthen our balance sheet and improve our liquidity position,” said Stronghold Digital Mining cochair and CEO Greg Beard in the press release. “We acknowledge the significant number of shares of common stock that could be issued as a result of the exchange agreement, but we believe this is necessary to preserve cash, reduce our financial obligations and better position the company to survive a potentially prolonged crypto market downturn. Following the closing of the exchange agreement, which is currently expected to occur in February 2023, the company expects to have less than $55 million in total principal amount of debt outstanding. We believe that the transaction will also create comprehensive equity alignment among existing Stronghold shareholders and the noteholders, which is critical in this time of stress on the industry.”

To view the full press release, visit https://ccw.fm/UeGAh

About Stronghold Digital Mining Inc. 

Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass Plant and Panther Creek Plant, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania. For more information about the company, please visit www.StrongholdDigitalMining.com.

About CryptoCurrencyWire (“CCW”)

CryptoCurrencyWire (CCW) is a financial news and content distribution company that provides (1) access to a network of wire services via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with CCW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness.

To receive instant SMS alerts, text CRYPTO to 77948 (U.S. Mobile Phones Only)

CryptoCurrency News Wire is where News, content and information converge via Crypto.

For more information, please visit https://www.cryptocurrencywire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire (CCW) website applicable to all content provided by CCW, wherever published or re-published: http://CCW.fm/Disclaimer

CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
[email protected]

CryptoCurrencyWire is part of the InvestorBrandNetwork