Stronghold Digital Mining Closes Panther Creek Plant Acquisition, Increasing Owned Power Generation Capacity to 165 Megawatts
08 November 2021 - 10:30PM
Stronghold Digital Mining, Inc. (Nasdaq: SDIG) (“Stronghold” or the
“Company”) has closed its acquisition of the Panther Creek Energy
Facility (the “Panther Creek Plant”) on November 2, 2021. The
Panther Creek Plant is an 80-Megawatt (MW) coal refuse
reclamation-to-energy facility, located in Pennsylvania, utilizing
the same circulating fluidized bed (“CFB”) technology as
Stronghold’s currently operating Scrubgrass Plant. The Stronghold
management team has deep operating experience with CFB technology
and anticipates a seamless integration into its existing
operations.
Both the Scrubgrass Plant and Panther Creek
Plant generate power from coal refuse, which is a waste byproduct
of legacy coal mining operations. The Commonwealth of Pennsylvania
has designated these coal refuse facilities as a Tier II
Alternative Energy Source, making them eligible to earn renewable
energy credits (“RECs”) and facilitating among the lowest
electricity costs for Stronghold in the Bitcoin mining
industry.
The Company also entered into an Operation,
Maintenance and Ancillary Services Agreement (the “Omnibus Services
Agreement”) with the seller to provide operations and maintenance
services support to Stronghold for both the previously acquired
Scrubgrass Plant and the Panther Creek Plant. The support services
from an experienced operating group are expected to facilitate
durable uptime and efficiency metrics for Stronghold’s power
assets.
In addition to building its power generation
capacity, the Company is continuing to grow its Bitcoin mining
capacity and recently entered into an agreement to acquire 12,000
S19j Pro miners from Bitmain, which are expected to be delivered in
six equal batches on a monthly basis beginning in April 2022.
“We are pleased to close on our second power
asset to grow our low-cost power supply for our Bitcoin mining
operations,” said Greg Beard, co-chairman and chief executive
officer of Stronghold. “We believe we have a differentiated
business model within the Bitcoin mining industry, as we not only
have some of the lowest electricity costs, but our operations
create a positive environmental outcome in the places we operate
through the cleanup of these toxic legacy waste coal piles.
“With 165 MW of power generation capacity and
$132.5 million in proceeds from our recently completed IPO, we have
a strong foundation to rapidly grow our Bitcoin mining
capabilities. Additionally, we believe that our Omnibus Services
Agreement will provide us with a seamless transition for
integrating the acquired Panther Creek Plant, where we expect to
begin installing miners next month. This swift deployment of mining
equipment is representative of the efficiency with which we execute
our business plans, and we are excited about our future growth
initiatives and opportunities.”
About Stronghold Digital Mining,
Inc.Stronghold is a vertically integrated Bitcoin mining
company with an emphasis on environmentally beneficial operations.
Stronghold houses its miners at its wholly owned and operated
Scrubgrass Plant, a low-cost, environmentally beneficial coal
refuse power generation facility in Pennsylvania.
Cautionary Statement Concerning
Forward-Looking StatementsCertain statements contained in
this press release constitute “forward-looking statements.” These
forward-looking statements, including statements regarding
Stronghold’s strategy, expectations with respect to the
acquisition, future operations, financial position, prospects,
plans and objectives of management, and growth rate. You can
identify forward-looking statements because they contain words such
as “believes,” “will,” “may,” “aims,” “plans,” “model,” and
“expects.” Forward-looking statements are based on Stronghold’s
current expectations and assumptions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks, and changes in circumstances that may differ
materially from those contemplated by the forward-looking
statements, which are neither statements of historical fact nor
guarantees or assurances of future performance.
Any forward-looking statement speaks only as of
the date on which it is made, and, except as required by law,
Stronghold does not undertake any obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for Stronghold to predict all
such factors. When considering these forward-looking statements,
you should keep in mind the risk factors and other cautionary
statements in the prospectus filed with the SEC in connection with
Stronghold’s initial public offering. The risk factors and other
factors noted in Stronghold’s prospectus could cause its actual
results to differ materially from those contained in any
forward-looking statement.
Investor Contact:
Matt Glover or Jeff Grampp, CFAGateway Group,
Inc. SDIG@GatewayIR.com1-949-574-3860
Media Contact:
contact@strongholddigitalmining.com
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