Stronghold Digital Mining, Inc. (NASDAQ: SDIG) has entered into securities purchase agreements with an institutional investor and the company's CEO, Greg Beard, to sell 9,000,000 shares of Class A Common Stock and share equivalents to the institutional investor and 1,000,000 shares of Class A Common Stock to Mr. Beard, at a price of $1.00 per share equivalent.

The company will also issue warrants to purchase an aggregate of 10,000,000 shares of Class A Common Stock with an initial exercise price of $1.10 per share, which will not be exercisable until six months after issuance. The gross proceeds from the private placement are expected to be $10 million, before deducting offering expenses, and will be used to acquire additional Bitcoin miners. The closing of the private placement is expected to occur on April 21, 2023.

As Cointime previously reported on January, Stronghold Digital Mining announced an exchange agreement with holders of the company's Amended and Restated 10% Notes, in order to extinguish all outstanding principal and interest of approximately $17.9 million in exchange for shares of a new series of convertible preferred stock with a face value of approximately $23.1 million. 

About Stronghold Digital Mining, Inc.

Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass Plant and Panther Creek Plant, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.