On September 12, 2024, Stronghold Digital Mining, Inc. ("Stronghold") entered into a Hosting Agreement with Bitfarms Ltd. Under the agreement, Bitfarms will deliver approximately 10,000 Bitmain T21 miners to Stronghold's Panther Creek mining facility. Stronghold will provide power, maintenance, hosting, and operational services for the miners. The initial term of the Hosting Agreement is set to commence on October 1, 2024, and will last until December 31, 2025, with automatic one-year renewals unless terminated by either party with a 60-day notice. Bitfarms has agreed to pay a monthly fee of 50% of the profit generated by the miners, with adjustments for upfront payments, taxes, and power costs. Additionally, Bitfarms has made a $7.8 million deposit to cover estimated power costs for three months, which is refundable at the...Show More

On September 12, 2024, Stronghold Digital Mining, Inc. ("Stronghold") entered into a Hosting Agreement with Bitfarms Ltd. Under the agreement, Bitfarms will deliver approximately 10,000 Bitmain T21 miners to Stronghold's Panther Creek mining facility. Stronghold will provide power, maintenance, hosting, and operational services for the miners. The initial term of the Hosting Agreement is set to commence on October 1, 2024, and will last until December 31, 2025, with automatic one-year renewals unless terminated by either party with a 60-day notice. Bitfarms has agreed to pay a monthly fee of 50% of the profit generated by the miners, with adjustments for upfront payments, taxes, and power costs. Additionally, Bitfarms has made a $7.8 million deposit to cover estimated power costs for three months, which is refundable at the end of the initial term or can be used to offset a termination fee if the Merger Agreement is terminated. The deposit will accrue interest at a rate tied to the secured overnight financing rate plus 1.0%. In the event of a default, the deposit may accrue interest at a rate of 24.0%. Furthermore, the companies have amended their Merger Agreement to include the Parent Termination Fee Offset and other provisions. The amendment and the Hosting Agreement are filed with the SEC and incorporated by reference in the report.