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HomeTechnologyStronghold agrees to pay $4.5 million to settle debate with Northern Data  

Stronghold agrees to pay $4.5 million to settle debate with Northern Data  

On October 13, Stronghold, a Bitcoin mining company, cancelled its hosting agreement with Northern Data and has agreed to pay the company a total of $4.5 million to settle the dispute.

According to a document that Stronghold filed with the United States Securities and Exchange Commission, the company believes that this settlement will save the company between $500,000 and $1.1 million in profit share payments per month through 2023 based on certain mining economics, and that it will improve cash flow by approximately $7 to $20 million until September 2024. These predictions were included in the filing.

As part of the agreement, Northern Data will not charge Stronghold the $2.6 million that it was previously obligated to pay, and Stronghold will have the right to utilise approximately 50 megawatts of power capacity from Northern Data’s modular data centre for a period of two years at a cost of $1,000 per year. 

Again, taking into consideration the mining economics of the time, Stronghold had the option at the conclusion of that time period to purchase the containers for a price ranging from $2 million to $6 million.

According to Greg Beard, co-chairman and CEO of Stronghold, the transaction would provide the company with more “operational control” of its bitcoin business as well as an increase in the amount of cash flow generated over the next two years.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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