Bitcoin Miner Stronghold Secures $15 Million Equity Raise Amidst Hashrate Curtailment Challenges
In a recent disclosure, the publicly-listed bitcoin mining corporation Stronghold Digital Mining publicized its entry into a $15 million securities purchase agreement with an institutional investor. Furthermore, Stronghold elaborated that the firm’s Panther Creek Plant encountered unforeseen complications with ash silo flow, prompting a temporary suspension of a portion of its operations. This interruption resulted in the company operating at 60% capacity from Nov. 20 to Dec. 7, 2023.
$15M Boost for Stronghold Amid Operational Setbacks
On Dec. 22, 2023, Stronghold Digital Mining (Nasdaq: SDIG) disclosed a $15 million equity raise. The bitcoin mining entity expressed intentions to channel these funds into expanding its mining rig fleet and propelling its carbon capture initiative forward.
Stronghold intends to allocate this new capital towards bolstering its general corporate endeavors, as indicated in the Friday announcement. Earlier in the year, the company formed a partnership with Canaan’s Cantaloupe Digital to enhance its hashpower.
This capital infusion was realized by offloading 2.3 million Class A shares of SDIG at an average of $6.71 each. Additionally, Stronghold provided an update on its Panther Creek mining facility, revealing that the site experienced a reduction in hashrate several weeks prior.
Due to an unforeseen ash silo flow incident, the facility was compelled to supplement its power supply externally, operating at a 60% capacity from Nov. 20 to Dec. 7, 2023.
Restoration efforts culminated on Dec. 21, 2023, with Panther continuing to depend on imported electricity from Dec. 8 to the 21st. Stronghold reported, “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.”
This situation resulted in Stronghold missing out on substantial fees from the Bitcoin network, marking some of the most lucrative periods for BTC miners throughout the year.
What do you think about Stronghold raising $15 million and the curtailment issues it has suffered over the past 30 days? Share your thoughts and opinions about this subject in the comments section below.
