**Stronghold Digital Mining Enters Hosting Agreement with Backbone Mining Solutions**

On October 29, 2024, Stronghold Digital Mining, Inc. (NASDAQ: SDIG) entered into a Hosting Agreement with Backbone Mining Solutions LLC (BMS), a subsidiary of Bitfarms Ltd., as per a recent 8-K filing with the Securities and Exchange Commission.

Under this agreement, Stronghold Digital Mining Hosting, an indirect subsidiary of Stronghold Digital Mining, will be hosting around 10,000 Bitmain T21 or similar miners owned by BMS at the company’s mining facilities. The initial term of this Hosting Agreement will start on November 1, 2024, and continue until December 31, 2025, with automatic renewals for additional one-year periods unless otherwise notified.

BMS will be paying Stronghold Hosting a monthly fee of fifty percent of the profit generated by the BMS Miners. Additionally, BMS deposited $7.8 million (the “Deposit”) with Stronghold Hosting, equivalent to the estimated cost of power for three months of operating the BMS Miners. This amount will be refunded in full to BMS at the end of the initial term expiring on December 31, 2025.

The Deposit will accrue interest at a floating rate and may bear additional interest in the event of default under the Hosting Agreement. Further terms and conditions of the Hosting Agreement can be found in the full text of the agreement filed with the SEC as Exhibit 10.1.

This arrangement forms part of Stronghold Digital Mining’s ongoing efforts to optimize its mining operations and leverage external partnerships for operational efficiency and financial benefit.

In conclusion, the Hosting Agreement between Stronghold Digital Mining and Backbone Mining Solutions LLC represents a strategic alignment aimed at bolstering mining operations for mutual benefit.

This summary is based on the recent 8-K filing submitted by Stronghold Digital Mining, outlining the collaboration with Backbone Mining Solutions. Investors are encouraged to refer to the detailed agreement for comprehensive information on the partnership.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Stronghold Digital Mining’s 8K filing here.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc, a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services.