Bitcoin mining company Stronghold Digital Mining announced that it has entered into a transaction agreement with the company's amended and restated 10% Noteholders (10% Notes), all outstanding debt principal and The interest will be paid off in exchange for new convertible preferred stock (Series C preferred stock) with a par value of approximately $23.1 million. The Series C preferred stock will convert into shares of the company's Class A common stock, or pre-funded warrants exercisable for shares of the Class A common stock, at a conversion price of $0.40 per share. According to the transaction agreement, the latest transaction completion date is February 20, 2023. "We announced yet another deleveraging transaction that is expected to significantly reduce our debt, strengthen our balance sheet and improve our liquidity position," said Greg Beard, Stronghold Co-Chairman and Chief Executive Officer. Upon closing of the transaction agreement, which is expected to take place in February 2023, the company expects to have less than $55 million in total principal debt outstanding.