Bitcoin Miner Stronghold Surrenders 26,200 Mining Rigs To New York Digital Investment Group

Abdul Ghani

To reduce debt and build liquidity, Stronghold is returning nearly 30,000 crypto mining rigs. The mining company suffers from the Bitcoin prices. The US mining company Stronghold has found a way to get rid of a large part of its debt. As Bloomberg reports, Stronghold is selling a total of 26,200 mining rigs to its investor New York Digital Investment Group (NYDIG), which in return will cancel $67.4 million in debt from a previous deal.

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Stronghold is a Bitcoin mining company.Image by Pixabay / Pixabay Creative Commons License

Together with another restructuring plan with financier Whitehawk Capital, Stronghold can thus reduce around half of its debt. In addition, liquidity is to be gained through a convertible bond.

Multiplying the amount of debt relief against the number of mining rigs, NYDIG gets each rig for just over $2,500. Although it is not known how powerful the rigs are, the price seems to be rather low.

Bitcoin rate is low

Like many mining companies, Stronghold faces the dilemma that the Bitcoin price is still low, but the price of electricity has risen. This makes the energy-intensive prospecting unprofitable. In the recent past, many miners have sold their graphics cards used for mining.

One of the reasons why Stronghold is known is that the company has two of its own power plants to generate energy for its own mining operations. The purchase of the Scrubgrass fossil power plant in Pennsylvania caused a stir because of the particularly environmentally harmful residues from coal mining that are burned there.

Stronghold collects the remains in the area and ensures that the polluting material disappears from the landscape. Combustion, however, releases large amounts of CO2. The power plant has an output of 85 megawatts.

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Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

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