On October 29, 2024, Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc., entered into a Hosting Agreement with Backbone Mining Solutions LLC, a subsidiary of Bitfarms Ltd. The agreement stipulates that Backbone Mining Solutions will deliver approximately 10,000 Bitmain T21 or similar miners to Stronghold's mining facilities. Stronghold will provide power, maintenance, hosting, and operational services for these miners. The initial term of the Hosting Agreement is set from November 1, 2024, to December 31, 2025, with automatic renewal for additional one-year periods unless a non-renewal notice is given. Backbone Mining Solutions will pay a monthly fee of 50% of the profit generated by the miners, with adjustments for upfront payments, taxes, and power costs. Additionally, a $7.8 million deposit was made by...Show More

On October 29, 2024, Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc., entered into a Hosting Agreement with Backbone Mining Solutions LLC, a subsidiary of Bitfarms Ltd. The agreement stipulates that Backbone Mining Solutions will deliver approximately 10,000 Bitmain T21 or similar miners to Stronghold's mining facilities. Stronghold will provide power, maintenance, hosting, and operational services for these miners. The initial term of the Hosting Agreement is set from November 1, 2024, to December 31, 2025, with automatic renewal for additional one-year periods unless a non-renewal notice is given. Backbone Mining Solutions will pay a monthly fee of 50% of the profit generated by the miners, with adjustments for upfront payments, taxes, and power costs. Additionally, a $7.8 million deposit was made by Backbone Mining Solutions to cover estimated power costs for three months, which will be refunded with interest at the end of the initial term. The interest rate on the deposit is based on the forward-looking term secured overnight financing rate plus 1.0%, with a higher rate applicable in the event of default. The agreement also includes provisions for termination upon default and outlines the responsibilities of both parties, including insurance, compliance with laws, and indemnification clauses.