Stronghold Announces Addition of up to ~1 EH/s Through Bitcoin Miner Purchases and an Option to Purchase Bitcoin Miners

Purchases 5,000 Bitcoin Miners with Aggregate Hash Rate Capacity of ~600 PH/s
and Average Efficiency of ~25 J/T, All Expected to Be Delivered in January 2024

Stronghold Also Receives the Option to Purchase 2,500 Canaan
Avalon A1466 Bitcoin Miners with Aggregate Hash Rate Capacity of 360 PH/s and
Expected Efficiency of 21.5 J/T

Provides December Bitcoin Mining Update

NEW YORK, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Stronghold Digital Mining, Inc. (NASDAQ: SDIG) (“Stronghold” or the “Company”) today announced that it executed agreements to purchase an aggregate of 5,000 Bitcoin miners on December 26, 2023, for approximately $8.5 million. These miners are expected to provide Stronghold with approximately 600 PH/s of cumulative hash rate capacity with average efficiency of 25 J/T.

The purchased miners include (i) 2,800 new Bitmain S19K Pro miners (115-120 TH/s per miner, 23 J/T efficiency) purchased from Luxor Technology Corporation (“Luxor”), (ii) 1,100 new MicroBT Whastminer M50 miners (120 TH/s per miner, 27 J/T efficiency) purchased from Luxor, and (iii) 1,100 new Avalon A1346 miners (123 TH/s per miner, 28.9 J/T efficiency) purchased from Canaan Creative Global Pte. Ltd. (“Canaan”). Stronghold funded the purchases with proceeds from the Company’s recently announced private placement, and the delivery of all purchased miners is expected no later than January 2024.

In addition to the purchase of the Avalon A1346 miners from Canaan, Stronghold was granted the option to purchase 2,500 Avalon A1466 miners (expected specifications of 140-150 TH/s per miner and 21.5 J/T efficiency) any time between now and December 2024 for $12 per TH/s. The A1466 miners are expected to be available starting in April 2024.

December Bitcoin Mining Update

Stronghold mined 207 Bitcoin in December 2023 and generated approximately $0.4 million in energy revenue, which represented the equivalent of approximately 9 additional Bitcoin based on the average price of Bitcoin during the month. This equated to approximately 216 of Bitcoin-equivalent production in December 2023, up approximately 2% sequentially compared to the Company’s 212 Bitcoin-equivalent production in November.

The Company generated an estimated $8.5 million of revenue during the month of December, its highest monthly revenue in 2023. The driver of the sequential increase was a higher hash price of $0.10 in December compared to $0.08 in November. Drivers of the higher hash price were a 16% rise in average daily BTC price and higher transaction fees/block subsidies averaging 26% in December compared to 14% in November, partially offset by an increase in network hash rate of 6%.