Stronghold Enters Into $15 Million Private Placement
22 Décembre 2023 - 2:30PM
Stronghold Digital Mining, Inc. (NASDAQ:
SDIG) (“Stronghold”, or the “Company”) today announced
that it entered into a securities purchase agreement with an
existing institutional investor (the “Purchaser”) to sell 2,300,000
shares of Class A Common Stock and share equivalents, in each case
at a price of $6.71 per share equivalent (the “Private Placement”).
The Company also issued to the Purchaser warrants to purchase an
aggregate of 2,300,000 shares of Class A Common Stock, with an
initial exercise price of $7.00 per share (subject to adjustments),
and such warrants are not exercisable until six months after
issuance.
The non-brokered Private Placement was executed
on December 21, 2023, and is expected to close on December 22,
2023. Gross proceeds from the Private Placement will be $15.4
million, before deducting offering expenses. Proceeds will be used
to enhance growth and efficiency of the Company’s miner fleet,
accelerate its carbon capture initiative, and improve its working
capital position and for general corporate purposes.
Additionally, the exercise price for 1,400,000
warrants previously issued on April 21, 2023, and September 19,
2022, will be adjusted from $10.10 per share and $11.00 per share,
respectively, to $7.00 per share.
Panther Creek Operational
Update
On November 20, 2023, the Company’s wholly owned
Panther Creek Plant experienced unexpected ash silo flow issues. As
a result, the Company operated the plant at a lower output while
the plant worked to remedy the issue. From November 20, 2023,
through December 7, 2023, the Panther Creek Plant operated at
approximately 60% net capacity factor while importing the remaining
electricity necessary to fulfill its data center needs. The
Company’s data center operations were unaffected during that
period.
While progress was made, on December 8, the
Company elected to shut off the plant for what was expected to be a
short-term, unplanned outage to fully fix the ash silo. The Company
took these steps to ensure maximum uptime and availability during
the coming winter months. The repairs were not completed until
December 21, resulting in the Panther Creek Plant importing
electricity between December 8 and December 21. Between December 12
and December 20, the Panther Creek data center was unexpectedly
required to curtail load to between 10 MW and 50 MW due to PJM
system reliability issues and a transmission line outage.
In total, the Company estimates that it incurred
fuel costs and operations and maintenance expenses of approximately
$1.5 million beyond the scope of normal and expected operations.
The Panther Creek Plant has resumed operations, and the Panther
Creek data center is operating without limitations. The Panther
Creek data center recently achieved a site-record hash rate of over
2 EH/s on December 3, 2023, with 100% hash rate utilization, and
the Company expects that it will reach that level again in the near
future.
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.
Investor Contact:Matt Glover or
Alex KovtunGateway Group,
Inc.SDIG@gateway-grp.com1-949-574-3860
Media
Contactcontact@strongholddigitalmining.com
Cautionary Statement Concerning
Forward-Looking Statements:
Certain statements contained in this press release,
including guidance, constitute “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. You can identify forward-looking statements because they
contain words such as “believes,” “expects,” “may,” “will,”
“should,” “seeks,” “approximately,” “intends,” “plans,” “estimates”
or “anticipates” or the negative of these words and phrases or
similar words or phrases which are predictions of or indicate
future events or trends and which do not relate solely to
historical matters. Forward-looking statements and the business
prospects of Stronghold are subject to a number of risks and
uncertainties that may cause Stronghold’s actual results in future
periods to differ materially from the forward-looking statements.
These risks and uncertainties include, among other things: the
recent restructuring of the Company’s debt and the performance and
satisfaction of various obligations under the agreements entered
into in order to effect such restructuring of debt; the hybrid
nature of our business model, which is highly dependent on the
price of Bitcoin; our dependence on the level of demand and
financial performance of the crypto asset industry; our ability to
manage growth, business, financial results and results of
operations; uncertainty regarding our evolving business model; our
ability to retain management and key personnel and the integration
of new management; our ability to raise capital to fund business
growth; our ability to maintain sufficient liquidity to fund
operations, growth and acquisitions; our substantial indebtedness
and its effect on our results of operations and our financial
condition; uncertainty regarding the outcomes of any investigations
or proceedings; our ability to enter into purchase agreements,
acquisitions and financing transactions; public health crises,
epidemics, and pandemics such as the coronavirus pandemic; our
ability to procure and install crypto asset mining equipment,
including from foreign-based suppliers; our ability to maintain our
relationships with our third party brokers and our dependence on
their performance; developments and changes in laws and
regulations, including increased regulation of the crypto asset
industry through legislative action and revised rules and standards
applied by The Financial Crimes Enforcement Network under the
authority of the U.S. Bank Secrecy Act and the Investment Company
Act; the future acceptance and/or widespread use of, and demand
for, Bitcoin and other crypto assets; our ability to respond to
price fluctuations and rapidly changing technology; our ability to
operate our coal refuse power generation facilities as planned; our
ability to remain listed on a stock exchange and maintain an active
trading market; our ability to avail ourselves of tax credits for
the clean-up of coal refuse piles; and legislative or regulatory
changes, and liability under, or any future inability to comply
with, existing or future energy regulations or requirements. More
information on these risks and other potential factors that could
affect our financial results is included in our filings with the
Securities and Exchange Commission, including in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” sections of our Annual Report on Form
10-K filed on April 3, 2023 and in our subsequently filed Quarterly
Reports on Form 10-Q. Any forward-looking statement or guidance
speaks only as of the date as of which such statement is made, and,
except as required by law, we undertake no obligation to update or
revise publicly any forward-looking statements or guidance, whether
because of new information, future events, or otherwise.
Stronghold Digital Mining (NASDAQ:SDIG)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Stronghold Digital Mining (NASDAQ:SDIG)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024