Bitcoin miner Stronghold Digital is in debt restructuring talks with lenders

Stronghold Digital, a bitcoin mining company, stated that it was unable to submit a quarterly report within the stipulated deadline mainly because the company was negotiating with its lenders on a potential major transaction to restructure or refinance certain financing agreements to improve the company's financial situation and Enables the company to continue operating for at least the next 12 years. The reorganization includes returning approximately 26,200 mining machines to NYDIG to eliminate a $67.4 million equipment financing agreement, restructuring and expanding the financing agreement with Whitehawk Finance, and amending its May 2022 convertible notes and warrants, among others. Shares of Stronghold Digital fell nearly 11% on the day and fell another 6% after hours after details of the restructuring were announced. Stronghold reported second-quarter revenue of $29.2 million, missing analysts' consensus estimate of $30.3 million, according to FactSet. The company also reported a net loss of $40.2 million for the quarter, compared with a net loss of $3.2 million in the second quarter of 2021, mainly due to higher expenses and impairment of Bitcoin assets. Foresight News previously reported that Bitcoin mining company Stronghold Digital Mining postponed its second-quarter earnings conference call to August 16 at 5:00 Beijing time.