Share this article
Stronghold Digital Mining Swaps Debt for Preferred Stock
The bitcoin miner has been reducing its debt since the summer.
Updated May 9, 2023, 4:05 a.m. Published Jan 3, 2023, 1:21 p.m.
In this article
Stronghold Digital Mining (SDIG) has agreed with noteholders to exchange $17.9 million of convertible debt for $23.1 million of convertible preferred stock, according to a press release Tuesday.
The deal is the bitcoin miner's latest effort to improve its balance sheet. In August, Stronghold announced a deal to return 26,200 mining rigs to lender NYDIG in exchange for extinguishing $67.4 million in debt. In September, the company cancelled a hosting agreement with Germany's Northern Data in an effort to improve its cash flow.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Under the agreement announced on Tuesday, 10% convertible notes will be extinguished in exchange for a new series of convertible preferred shares that can be converted into common shares for 40 cents per share.
If all the preferred stock is converted, about 57.8 million common shares would be issued, adding about 46% to the current common float, according to the company. Stronghold won't pay a dividend on the new preferred shares.
With the deal, which is set to close by Feb. 20, Stronghold will have less than $55 million in debt outstanding, CEO Greg Beard said in the statement.
At the end of 2022, Stronghold had about $12.4 million of unrestricted cash and about 6 bitcoins, which are worth about $100,000 at current prices.
Read more: Inside Core Scientific’s Prearranged Bankruptcy
UPDATE (Jan. 3, 15:00 UTC): Adds detail about closing date and outstanding debt in fifth paragraph.
Higit pang Para sa Iyo
Ano ang dapat malaman:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Higit pang Para sa Iyo
JPMorgan Pushes Deeper Into Tokenization With Galaxy's Debt Issuance on Solana
Galaxy’s onchain debt deal, where JP Morgan acted as arranger, was settled in USDC stablecoin and backed by Coinbase and Franklin Templeton.
Ano ang dapat malaman:
- J.P. Morgan arranged Galaxy Digital’s commercial paper issuance on the Solana blockchain, one of the first of its kind in the U.S.
- Coinbase and Franklin Templeton bought the short-term debt instrument, settled in USDC
- Tokenization of real-world assets is gaining traction, with projections suggesting the market could reach $18.9 trillion by 2033.
Top Stories
