Bitcoin Company Had to Sell 26,000 Mining Rigs to Recover $67 Million in Debt


Remember when GPU price and availability was an issue because they were bought in droves to mine Bitcoin? Well, it would be weird if you forgot, because it never stopped. Despite the massive fall in recent months, Bitcoin is slowly regaining its value for…reasons. Many bitcoin companies did not make it to the other side of the crisis, and those that did suffered massive losses and debt, like Stronghold Digital Mining, for example.

As spotted by Tom’s Hardware, SDIG recently released its financial report, which revealed that the company needed to sell 26,200 Bitcoin mining rigs in order to recover debt worth $67.4 million.

“On August 16, 2022, Stronghold entered into an agreement with NYDIG ABL LLC (“NYDIG”) and another participating lender to eliminate all $67.4 million outstanding under the equipment financing agreements with such lenders and Consensually render approximately 26,200 Bitcoin miners (approximately 18,700 of which are currently operating) with a hash rate capacity of approximately 2.5 exahash per second (“EH/s”), thereby freeing up data center locations entirely developed,” the report says.

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The Bitcoin market has stabilized to some extent recently. While it’s certainly not as high as it once was, the downward slide is at least over. With that, GPU prices also came down to reasonable levels, although availability was still an issue – partly because crypto companies had high demand, and also because of the global shortage of microprocessors.

Many video game companies, especially marketplaces, like Steam, have blocked the use of cryptocurrency due to the risk of fraud. “The problem is that a lot of the actors that are in this space aren’t people you want your customers to interact with,” Gabe Newell said of it. “We had problems when we started accepting cryptocurrencies as a payment option. 50% of those transactions were fraudulent, which is a staggering number. These were customers we didn’t want to have.”


Newell opines that while blockchain technology is an interesting technology with huge reach, the use case scenarios have yet to be understood and implemented properly.

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