CAN - Stronghold Digital enters into two-year hosting deal with Canaan subsidiary
2023-05-04 15:30:42 ET
Stronghold Digital Mining ( NASDAQ: SDIG ) last week struck a two-year hosting agreement with Canaan ( CAN ) subsidiary Cantaloupe Digital, the eco-friendly bitcoin ( BTC-USD ) miner said Thursday.
SDIG will operate 2,000 A1346 (110 terahash per second per miner) and 2,000 A1246 (90 TH/s per miner) miners supplied by rig maker Canaan ( CAN ), with a total hash rate capacity of 400 petahash per second.
Under the terms of the deal, Stronghold ( SDIG ) will get 50% of the bitcoin ( BTC-USD ) produced by the miners and get payments from Canaan ( CAN ) equal to 55% of the net cost of power at the company's Panther Creek plant, in dollar-per-megawatt-hour terms, calculated on a monthly basis.
The A1246 miners will be installed by May 15, and the A1346 miners are to be installed a month later. All 2,000 A1246 miners are currently on site and ready to be deployed, said SDIG, one of the many miners that got stung by falling BTC prices and rising energy costs.
With a ~$15M investment, Stronghold ( SDIG ) has procured around 22K miners since last August with mining capacity of ~2.2 exahash per second, Chairman and CEO Greg Beard said.
"We achieved this through opportunistic purchases of Bitcoin miners in a distressed market and through unique hosting agreements where we retain exposure to Bitcoin mining economics and power upside, consistent with our vertically integrated business model," he said.
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Stronghold Digital enters into two-year hosting deal with Canaan subsidiary