Stronghold Digital Mining filed a prospectus to sell up to 10 million Class A shares as part of its efforts to preserve cash.
The offering consists of 2.27 million shares of Class A common stock that have been issued to the selling stockholder, 2.73 million shares of Class A common stock that are issuable upon the exercise of pre-funded warrants acquired by the selling stockholder and 5 million shares of Class A common stock that are issuable upon the exercise of warrants acquired by the selling stockholder.
The company will use any proceeds for general corporate purposes.
On Jan. 3, Stronghold reached an agreement with noteholders to convert $17.9 million of debt into equity as the miner has been trying to improve cash flow. It also ended a hosting deal with Northern Data and eliminated $67.4 million in debt with NYDIG.
“This is necessary to preserve cash, reduce our financial obligations and better position the company to survive a potentially prolonged crypto market downturn,” Greg Beard, co-chairman and chief executive officer said at the time.
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Source: https://www.theblock.co/post/208468/stronghold-digital-mining-share-sale?utm_source=rss&utm_medium=rss