Stronghold disclosed deals for 9,080 bitcoin miners

Stronghold Digital Mining disclosed on December 20, 2021, that it had entered four agreements to acquire 9,080 Bitmain and MicroBT bitcoin-mining machines. The Nasdaq-listed company assigned the package approximately 826 petahashes per second of nameplate computing capacity and separately announced an equipment-financing agreement with NYDIG ABL for as much as $53.952 million.

The disclosure mattered because it showed how a newly public miner was combining hardware procurement, company-controlled power infrastructure and secured financing to pursue scale. Stronghold planned to install the machines at its Scrubgrass and Panther Creek power-generation facilities in Pennsylvania. The announcement established contractual commitments, however—not completed delivery, installation or bitcoin production.

Four agreements formed the 9,080-machine package

The four procurement agreements were signed between November 30 and December 16, 2021. A December 10 agreement covered 3,000 MicroBT WhatsMiner M30S machines rated at 87 terahashes per second each, for $20.88 million. A December 7 agreement covered 1,000 Bitmain S19a machines rated at 96 TH/s each, for $8.592 million.

Stronghold’s November 30 agreement covered 800 Antminer T19 machines: 400 rated at 84 TH/s and 400 rated at 88 TH/s. Their total price was $6.2608 million. Those three purchases comprised the first 4,800 machines, approximately 426 PH/s of capacity and a combined cost of $35.7328 million. Dividing that cost by 425,800 TH/s produces approximately $83.92 per TH/s, consistent with Stronghold’s claim that the group cost less than $84 per TH/s.

A December 16 agreement covered approximately 4,280 additional M30S and M30S+ machines for a stated cumulative purchase price of $11.340373 million. Stronghold’s press release associated that group with an expanded profit-sharing arrangement involving Northern Data but did not disclose the complete commercial allocation.

The company expected the first 4,800 machines to arrive by December 31, 2021, or in early January 2022. It expected the remaining machines during the first half of 2022. These were contemporaneous company forecasts rather than verified delivery or operating records.

NYDIG financing covered a separate fleet

Stronghold’s NYDIG agreement, signed December 15, authorized up to $53.952 million of financing for 12,000 Bitmain Antminer S19j Pro machines. The financed fleet was separate from the four agreements summarized in the 9,080-machine announcement.

By December 17, Stronghold had drawn $18.559488 million through two of three available tranches. The outstanding principal carried 9.85% interest and was payable in 24 consecutive monthly installments. Collateral included the financed equipment, contracts to acquire it and bitcoin mined by that equipment. The filing also provided for a 1.25% fee on undrawn third-tranche funds if they were not requested by April 30, 2022.

The same filing disclosed a distinct prepaid forward transaction covering 250 bitcoin. NYDIG’s affiliate paid an initial amount based on a $28,000-per-bitcoin floor on December 16, with a later settlement formula subject to an $85,500-per-bitcoin cap. That transaction illustrated how Stronghold was using multiple funding structures, but it was not part of the miner-purchase total or the equipment loan.

Announced capacity was not observed output

Stronghold said it had installed machines or signed definitive purchase agreements for more than 54,000 miners representing approximately 5.2 exahashes per second. On that company-reported basis, the new 0.826 EH/s package equaled approximately 15.9% of its installed-or-contracted pipeline, calculated by dividing 0.826 by 5.2.

That comparison uses nameplate estimates rather than measured operating capacity. The December 20 records did not establish subsequent delivery, installation timing, efficiency, uptime or bitcoin production. The defensible event-day conclusion is narrower: Stronghold documented a large procurement program and the secured financing structure intended to support further expansion.