NEW YORK, Oct. 14, 2022 (GLOBE NEWSWIRE) — Fortress Digital Mining, Inc. SDIG (“Fortress” or the “Company”) today provided an update on its previously announced agreement with NYDIG ABL LLC (“NYDIG”) and Provident Bank (“BankProv”) to settle approximately $67 million in principal of outstanding debt (the “Debt”) under equipment financing agreements to eliminate. Separately, the company also announced the recent mutual termination and settlement of its data center hosting contract. The company believes the comparison significantly benefits cash flow generation and operational flexibility. Stronghold has published an investor presentation on its website Investor Relations Website to supplement this press release, which can be found at events and presentations Section.
NYDIG Device Funding Update
As previously announced on August 16, 2022, Stronghold affiliates entered into an Asset Purchase Agreement (“APA”) with NYDIG and BankProv to return approximately 26,000 bitcoin mining rigs used as collateral under equipment finance agreements (the “APA -Collateral”) were used in exchange for the repayment of approximately $67 million of the principal amount of the outstanding debt. On September 30, 2022, Stronghold completed the sale of the first three tranches of the APA Collateral to BankProv in exchange for the repayment of approximately $27 million of the debt. On October 13, 2022, Stronghold completed the sale of three tranches of APA collateral to NYDIG in exchange for approximately $38 million of debt repayment. As of October 13, 2022, approximately $65 million of the $67 million in debt has been paid off following the delivery of miners to NYDIG and BankProv between August 16, 2022 and October 12, 2022 under the APA. On October 13, 2022, the company transferred all of the approximately 26,000 bitcoin mining rigs used as collateral under the debt to NYDIG and BankProv, with the exception of approximately 500 bitcoin.
