US Stronghold company, which mines cryptocurrencies with alternative energy sources and minimizes the damage to the environment in this sense, made 4 separate agreements with two mining device manufacturers, Bitmain and MicroBT, for a total of 9080 machines. 35.7 million dollars will be paid for 4800 devices to be delivered in the short term, while the remaining device group, whose payment details have not been disclosed, will be received in the first half of 2022.
Stronghold company, which conducts its mining operations in the USA, in Pennsylvania, where there are mostly coal mines, and mines waste coal and Bitcoin, which is equated with the damage caused by the hydroelectric power plant, has increased its power in the sector with giant mining device agreements.
The company, which received an investment of 105 million dollars in the summer, made 4 separate agreements with Bitmain and one of its major competitors, MicroBT, involving a total of 9080 mining devices. 4800 of these devices are expected to be delivered before the end of December or just at the beginning of January. The remaining devices will be delivered in the first half of 2022.
$35.7 million for the first batch
All devices will be installed in Stronghold-owned centers. It was noted that the company paid a total of 35.7 million dollars for the 4800 devices expected to be delivered in the short term, while the 4280 devices to be delivered later were purchased as a result of an agreement made with the other partner of the company, Northern Data, on “very favorable terms”. The company currently has a little over 54,000 mining devices with a capacity of 5.2 exahash per second.
“It will accelerate our growth even more”
Stronghold’s co-chairman and CEO, Greg Beard, commented on the acquisitions, saying that they provided the relevant information to investors in their 3-quarter earnings report:
“3. At the quarterly earnings report meeting, we told our investors that we will continue to seize important opportunities and that we are purchasing mining equipment from various manufacturers. We believe these device acquisitions will further accelerate our rapid growth and increase our earnings ratio by minimizing short-term deliveries and timing risk. With these low-cost purchases, the importance of our new-style business model becomes clearer. We also have the capacity and energy to run all devices.”
Agreement with NYDIG for $54 million
Stronghold company signed a full $54 million equipment financing agreement with NYDIG, which provides cryptocurrency custody services, on December 15. It is stated that the company received a gross prepayment of approximately $18.6 million from NYDIG even in a short 5 days. According to the agreement, Stronghold will repay with 9.85% interest until 25 December 2023. The received fund will act as collateral for 12 thousand Antminer S19j PRO devices to be purchased from Bitmain.
While there were many fires and disasters caused by waste coal in the region before, Stronghold’s use of these dangerous wastes to turn them into energy made a big impact.
SEE ALSO: What Is Lightning Network?Share this article