A deal is being worked out between the SDIG, an acronym for Stronghold Digital Mining and its New York counterpart, the NYDIG over the repayment of a staggering debt of about 67 million USD being owed the latter by the former. This would involve returning 26,200 apparatuses used for mining by SDIG. Both companies are famous for their expertise in Bitcoin drilling.
Flattening the Debt Curve
An agreement was reached which ensures that SDIG transfers the ownership of 26,200 mining tools to NYDIG. The swap is meant to offset a huge debt of 67.4 million USD that Stronghold currently owes its creditor (New York Digital Investment Group). This accounts for more than half of its total debt burden of nearly 128 million USD, which was disclosed in a report that details how the company fared in the second quarter.
A New Finance Program
Some other aspects of the publication involve a new framework between Stronghold and Whitehawk, an investment administrator. The aim is to reorganize and enlarge how it finances existing transactions to an extended time covering over three years. There would also be the injection of an additional $20 million to assist Stronghold Digital Mining to procure new equipment, in order to keep its mining operations afloat and possibly upgrade.
The foregoing only buttresses the fact that a number of companies involved in Bitcoin drills have been having a hard time staying in business. This became vivid with the crisis that hit the market in the second quarter of 2022. In a bid to keep pace, miners have sold their machines or hastily traded off their Bitcoin assets.
