Stronghold Digital is preparing to restructure $55 million in debt

The company was able to sign a two-year hosting agreement with Foundry. As for the restructuring deal, it will help postpone the $54.9 million principal repayment deadline. It has now been pushed back to June 2024. 

Stronghold has been making agreements with its creditors for months now in a tough bear market and with energy costs spiking. Its main goal is to prevent Compute North and Core Scientific from ending up in Chapter 11 bankruptcy proceedings. 

Based on the terms of the latest agreement, Miner is no longer obligated to pay amortization fees on the $55 million debt through the summer of 2024. If the agreement could not be signed, $1.6 million monthly would be required to be paid. 

In addition, Stronghold was able to sign an agreement with Foundry to provide hosting services for 4,500 units. The hosting fee will be equivalent to the realized net cost of electricity at the Stronghold Partner Creek station. 

We note that Foundry’s stock is up 5.4 percent.