artiemedvedev\/iStock via Getty Images<\/p>\n<\/figcaption><\/figure>\n<\/p>\n As part of its efforts to reduce its debt load<\/a>, Stronghold Digital Mining (NASDAQ:SDIG<\/a><\/span>) struck a deal with noteholders Tuesday to exchange ~$17.9M of 10% convertible notes for convertible preferred stock with a face value of ~$23.1M. <\/span><\/p>\n The Series C preferred shares, which will not bear a preferred dividend, will be convertible into shares of the company’s Class A common stock at $0.40 a share, it said. Assuming all preferred stock gets converted, ~57.8M shares of common stock would then be issued, representing about 46% of the fully diluted shares outstanding on a pro forma basis. <\/p>\n “Following the Closing of the Exchange Agreement, which is currently expected to occur in February 2023, the Company expects to have less than $55 million in total principal amount of debt outstanding,” said Stronghold CEO and Co-Chairman Greg Beard. <\/p>\n Shares of the bitcoin (BTC-USD<\/a>) miner gained 8.5%<\/span> to $0.52 in premarket trading, down significantly from when it first started trading at $28.90 on October 20, 2021. But in the face of a prolonged market downturn, a slew of bitcoin miners have suffered from liquidity issues that have caused them to turn to cost-cutting initiatives. <\/p>\n As of December 31, the miner had approximately $12.4M of unrestricted cash on hand and about six bitcoin (BTC-USD<\/a>). <\/p>\n In September, Stronghold (SDIG<\/a>) said it identified an additional annualized cost savings and announced a $9M private placement<\/a>.<\/p>\n<\/div>\n\n artiemedvedev\/iStock via Getty Images As part of its efforts to reduce its debt load, Stronghold Digital Mining (NASDAQ:SDIG) struck a deal with noteholders Tuesday to exchange ~$17.9M of 10% convertible notes for convertible preferred stock with a face value of ~$23.1M. The Series C preferred shares, which will not bear a preferred dividend, will be …<\/p>\n","protected":false},"author":1,"featured_media":39613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/39612"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=39612"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/39612\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/39613"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=39612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=39612"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=39612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Bitcoin](\"https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/1327610107\/image_1327610107.jpg?io=getty-c-w750\")
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