Stronghold Digital Mining Strengthens Financial Position through Credit Agreement Amendment and Two-Year Foundry Hosting Agreement - Seite 2

The table below summarizes the key terms of the Amended Credit Agreement compared to the terms of the Original Credit Agreement:

	Original Credit Agreement	Amended Credit Agreement
Principal Amount Outstanding (as of 2/3/23)	~$54.9mm	Unchanged
Coupon	SOFR + 10% (3% SOFR floor)	Unchanged
Ability to Pay Interest in Kind	No	Yes, for up to 6 months, only if average daily cash balance for the respective month is less than $5mm
Mandatory Amortization	~$1.6mm per month through end of term	$0 through June 2024 Then ~$1.6mm per month through end of term
Cash Sweep to Lender	None	Beginning in June 2023, 50% of average monthly cash balance in excess of $7.5mm until debt is repaid
Minimum Liquidity Covenants (Absolute | Monthly Average)	Through 6/30/23: $7.5mm | $10.0mm Thereafter: $7.5mm | $20.0mm	Through 3/31/24: $2.5mm | none 4/1/24 through 12/31/24: $5.0mm | none Thereafter: $7.5mm | none
Leverage Covenants (Net Debt-to-EBITDA)	As of 12/31/22: 7.5:1.0 As of 3/31/23: 5.0:1.0 As of 6/30/23: 4.0:1.0 Thereafter: 4.0:1.0	Before 9/30/24: none Thereafter: 4.0:1.0
Board Representation	No	Right to approve one independent director and appoint one observer

Foundry Hosting Agreement

On February 6, 2023, the Company signed a two-year hosting agreement with Foundry (the “New Foundry Hosting Agreement”), replacing the previous hosting agreement entered into on November 7, 2022. The New Foundry Hosting Agreement applies to the same Bitcoin mining fleet of approximately 4,500 miners with total hash rate capacity of approximately 420 PH/s and average efficiency of approximately 35 J/TH. The New Foundry Hosting Agreement has similar terms to the previous hosting agreement, with a few notable differences: