Stronghold Digital to Add 400 PH/s Capacity Via 4K Bitcoin Miners From Canaan Subsidiary

Mining

Bitcoin miner Stronghold Digital (SDIG) is to host 4,000 mining machines provided by Cantaloupe Digital, a subsidiary of rig maker Canaan (CAN).

The two,000 A1246 and a couple of,000 A1346 miners will present a complete capability of 400 petahash per second (PH/S), based on an emailed announcement on Thursday. The A1246 miners will probably be put in by Could 15, whereas the A1346 miners will probably be put in by a month later.

Stronghold has procured round 22,000 miners since August with capability of two.2 exahash per second (EH/s) at a value of $15 million, CEO Greg Beard mentioned.

“We achieved this by means of opportunistic purchases of Bitcoin miners in a distressed market and thru distinctive internet hosting agreements the place we retain publicity to Bitcoin mining economics and energy upside,” Beard mentioned.

As a part of the two-year internet hosting settlement with Canaan, Stronghold will obtain 50% of the bitcoin mined and retain any upside of promoting energy again to the grid, ought to the corporate elect to curtail the utilization of the machines to take action.

Like its friends throughout the mining trade, Stronghold spent 2022 in a squeeze between falling bitcoin costs and exorbitant power prices.

Stronghold was in a position to set up restructuring offers to fend off the bankruptcies that befell Compute North and Core Scientific (CORZ). Its newest restructuring deal allowed it to postpone funds on $55 million value of debt till June 2024.

SDIG shares are up round 3.8% on the day at $0.89 on the time of writing.

Learn Extra: Crypto Mining Rig Maker Canaan’s This autumn Income Sunk 82% to $56.8M