Stronghold Digital Mining, WhiteHawk Finance Enhance Liquidity, Flexibility

Stronghold Digital Mining and WhiteHawk Finance LLC

• Stronghold Digital Mining and WhiteHawk Finance LLC have announced ratifications to their original credit agreement.
• Stronghold has also entered a new two year contract with Foundry Digital, replacing their previous temporary contract.
• The changes to the credit agreement are designed to provide Stronghold with significantly enhanced liquidity and financial flexibility.

Amended Credit Agreement Terms

The amended credit agreement includes the following terms: no mandatory principal amortization payments until July 2024, principal repayment through cash sweep, option to pay interest in kind for up to six months, elimination of all leverage covenants before Q3 2024, reduced minimum liquidity covenants, and no dilution.

Foundry Digital Contract

The new Foundry contract applies to approximately 4500 miners with total hash rate capacity of 420 PH/s and average efficiency of 35 J/TH. The agreement term is two years, with no unilateral early termination option. The applicable hosting fee will be the realized net cost of power at the Company’s Panther Creek Plant plus 10%, calculated on a monthly basis. Foundry will also participate in profit generated from selling power to the grid when miners are curtailed.

Greg Beard’s Statement

Co-chairman and chief executive officer of Stronghold Greg Beard expressed appreciation towards WhiteHawk’s partnership during this challenging time in Bitcoin and power markets, as well as excitement over continuing their partnership with Foundry through this new long-term agreement which offers certainty around keeping miners installed capable of supporting approximately 4 EH/s of miners utilizing self-generated power.

Conclusion

In conclusion, Stronghold Digital Mining has amended its original credit agreement with WhiteHawk Finance LLC while entering a new two year contract with Foundry Digital that allows for participation in profits generated from selling power to the grid when miners are curtailed. Through these agreements, Stronghold is provided significantly improved liquidity and financial flexibility.