In a new development, Stronghold Digital Mining, a publicly-listed bitcoin mining company, has announced a $15 million securities purchase agreement with an institutional investor. Despite this positive news, Stronghold revealed that its Panther Creek Plant faced unforeseen challenges with ash silo flow, leading to a temporary suspension of some operations and a decrease in capacity from Nov. 20 to Dec. 7, 2023.
The $15 million equity raise disclosed on Dec. 22, 2023, by Stronghold Digital Mining (Nasdaq: SDIG) is aimed at enhancing the company’s mining rig fleet and advancing its carbon capture initiative. In addition to these goals, the company plans to allocate the funds to strengthen its general corporate initiatives, with an ongoing partnership with Canaan’s Cantaloupe Digital to improve hashpower.
The capital infusion involved the sale of 2.3 million Class A shares of SDIG at an average of $6.71 each. Alongside this announcement, Stronghold provided an update on its Panther Creek facility, acknowledging the reduction in hashrate due to the ash silo flow incident, which led to the need for external power supply and a 60% capacity operation from Nov. 20 to Dec. 7, 2023.
Efforts to restore the situation culminated on Dec. 21, 2023, with Panther Creek relying on imported electricity from Dec. 8 to the 21st. The facility was unexpectedly required to curtail load between 10 MW and 50 MW due to PJM system reliability issues and a transmission line outage, resulting in Stronghold missing out on substantial fees from the Bitcoin network during one of the most profitable periods for BTC miners throughout the year.
What are your thoughts on Stronghold’s $15 million raise and the operational challenges it has faced in the past 30 days? Share your opinions in the comments section below.
