BTC miner Stronghold shorted debt by 60%
The contract between Stronghold and Northern Data's ends and it allows BTC-miner to cut its payments. Revenue from that deal could have been reduced by 35%. In addition, Stronghold will not transfer Nothern Data $2.6 million.
At the beginning of the year, the company lowered its hashrate projections against Wall Street's forecasts. This became the key precedent of problems that will steadily escalate. Falling stock markets exacerbated the situation. Stronghold tried to improve the debt. As a result, representatives of the company said they managed to reduce it by 60%.
The company's CEO, Greg Beard said:
Progress continues in achieving targets. All data are improving.
According to the agreement, the company will use 50 MW of containers owned by Nothern Data for $1,000 a year. After two years, they can be bought back for the equivalent of $2-$6 million.
Terminating the contract with Nothern Data brought Stronghold $27.6 million in savings.
Stronghold, like other BTC miners, has faced big challenges this year. The shares lost about 93%. Marathon Digital, Riot, and Core Sciencific had a similar situation, their securities fell in price by 70%.