The bitcoin mining firm Stronghold announced that it had come to an agreement with NYDIG and other participating brokers as a part of a debt-reduction plan. Consequently, Stronghold will return some 26,200 mining machines in exchange for slashing $67.4 million in debt.
This move comes as crypto firms continue to take stock of the crippling impact of the recent market crash.
Stronghold said the debt restructuring and refinancing agreements were necessary “for the Company to be able to continue as a going concern for at least the next 12 months.”
Moreover, Stronghold received a commitment from lender WhiteHawk Capital to restructure and expand its current equipment financing agreements. This will grant the Bitcoin miner up to $20 million in additional borrowing capacity.
Combining these agreements, Stronghold can reduce the debt by $79 million. On the other hand, other bitcoin miners have taken to selling their bitcoin reserves to survive the crash which may come as a surprise to crypto players who believe in HODL.
Stronghold reported revenues of $29.2 million for the second quarter. It also reported a net loss of $40.2 million for the quarter, compared to a net loss of $3.2 million in the second quarter of 2021, with the increase driven primarily by a rise in expenses and impairments on its bitcoin holdings.
Last month, at Bitmain’s World Digital Mining Summit (WDMS), Antalpha launched several novel lending products for crypto miners. The product might turn out very useful for crypto miners who have been facing margin calls on their loans due to the dramatic price drop of bitcoin amidst the crashing market.
