Stronghold Digital Mining Secures $10 Million Investment for Expansion
Private Placement Announcement
Stronghold Digital Mining, Inc. has announced a strategic move to enter into securities purchase agreements with an institutional investor and its chairman and CEO, Greg Beard. The company plans to sell 9,000,000 shares of Class A Common Stock and share equivalents to the institutional investor, along with 1,000,000 shares to Mr. Beard. Each share is priced at $1.00 in this private placement.
Investment and Use of Proceeds
The private placement is expected to generate $10 million in gross proceeds before expenses. The capital raised will primarily be used to acquire additional Bitcoin miners, enhancing the company's mining capabilities. The transaction is slated to close on April 21, 2023.
Warrants and Registration Rights
As part of the deal, Stronghold will issue warrants to purchase 10,000,000 shares of Class A Common Stock at an initial exercise price of $1.10 per share. These warrants become exercisable six months post-issuance. A registration rights agreement accompanies the private placement, allowing the institutional investor to resell the purchased securities.
Equity Issuance Restrictions
The company has agreed to refrain from issuing additional equity for 30 days following the effective date of the registration statement. Furthermore, Stronghold will not engage in variable rate transactions for six months post-effective date, subject to certain exceptions.
Company Overview
Stronghold Digital Mining is a vertically integrated Bitcoin mining company focused on environmentally beneficial operations. It operates the Scrubgrass and Panther Creek Plants in Pennsylvania, known for low-cost, eco-friendly coal refuse power generation.
Forward-Looking Statements
This announcement contains forward-looking statements about the company's future performance and market conditions. These projections are based on current expectations and are subject to risks and uncertainties. Recipients are advised to consider these factors and perform their own evaluations. Stronghold does not commit to updating any forward-looking statements.
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