Bitcoin Miner Stronghold Acquires Panther Creek Power Plant and Refuse Site

According to a recent article in Bitcoin Magazine, Stronghold Digital Mining has reportedly acquired the Panther Creek coal refuse site along with its 80 MW capacity. If the company succeeds in actualizing that potential, the new facility could more than double Stronghold’s total power capacity to 165 MW. The plant is located on a 33-acre site in the northeastern Pennsylvania borough of Nesquehoning.

Stronghold is a vertically integrated bitcoin mining company that operates a wholly-owned, low-cost power generation facility in Pennsylvania. The company’s business model is focused on remediating waste coal into value through bitcoin mining.

Stronghold reports that it has raised $74 million in lease financing to support purchases bitcoin minders to scale the company’s plant and data center infrastructure, including $40 million from WhiteHawk Capital Partners, a private credit investment manager. The remaining $34 million is financed by Arctos Credit, LLC. Arctos Credit is an affiliate of New York Digital Investment Group, better known as NYDIG. NYDIG is a technology and financial services company dedicated to Bitcoin.

Stronghold reports that it has “entered into definitive agreements with multiple suppliers to purchase over 27,300 additional miners with a total capacity equal to 2,600PH/s. They also report that they are currently in negotiations to acquire a third facility in Pennsylvania.

In June, Stronghold raised $105 million in two private placements of equity securities to purchase the Scrubgrass plant in Venango County. The company estimates it will eliminate 200 tons of waste coal for each bitcoin mined. On July 27th, the bitcoin miner filed with the U.S. Securities and Exchange Commission (SEC) for a proposed $100 million initial public offering (IPO) on Nasdaq.

The Scrubgrass and Panther Creek power plants were previously owned and operated by Olympus Power, a New Jersey-based independent power company that owns and manages power plants, including thermal and renewable energy facilities. Olympus sells electricity to utilities and industrial operations and supports coal refuse reclamation projects to produce energy.

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