Mining company Stronghold Digital Mining intends to increase its capacity to 165 MW through the acquisition of the Panther Creek power plant in Pennsylvania.
Stronghold Digital Mining has signed an agreement to purchase the Panther Creek Power Plant, located on a 33 acre site in Carbon County, Pennsylvania. The power plant has a generating capacity of 80 MW and upon receiving regulatory approval, the deal will double Stronghold’s current capacity to 165 MW.
Stronghold recently raised over $ 105 million in an initial public offering. The company intends to mine bitcoins using electricity generated from waste coal in order to eliminate adverse environmental impacts.
According to Stronghold filing with the US Securities and Exchange Commission (SEC), the company’s “mining fleet” consists of 1,840 old and new ASIC miners manufactured by Bitmain and Canaan. Stronghold’s Scrubgrass facility has a capacity of 85 PH / s with a total power consumption of 4,170 kWh.
With the current difficulty of Bitcoin mining, Stronghold can mine about 0.738 BTC every 24 hours, while spending about 100 MWh. According to the S-1 form, completed by the company for the regulator, with the cost of electricity at $ 0.021 per kWh, Stronghold’s gross profitability from bitcoin mining will be 93% at its price of about $ 38,500.
Meanwhile, Stronghold raised $ 74 million in two loans secured by WhiteHawk Capital Partners ($ 40 million) and NYDIG ($ 34 million) to expand its mining infrastructure. Since April, the company has pre-ordered 27,300 mining devices from Bitmain, Canaan and MicroBT, with a total hash rate of 2,600 PH / s. Stronghold management has reported that 93% of these ASIC miners will ship in 2021. Receipt of the first batch is scheduled for August 2021, and the remaining 7% during 2022.
The first 16,000 units will be located at the Scrubgrass plant, while the remainder will be installed at Panther Creek and an unnamed third power plant with which Stronghold has already entered into a sales and purchase agreement. In connection with the upcoming IPO, Stronghold plans to order another 27,900 ASIC miners, which will increase its hashrate to 3000 Px / s by the end of the year and to 5300 Px / s by December 2022.
Luxor Technologies recently launched an index that tracks the shares of publicly traded companies in the mining industry.
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