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The United States-based Bitcoin mining company, Stronghold Digital Mining (SDIG), announced<\/a> on Tuesday new moves to elevate outstanding debt and restructure its financial operations.<\/p>\n In an agreement with lender New York Digital Investment Group (NYDIG), the company plans to release 26,000 of its mining rigs, 18,700 of which are currently running. The sell-off will create more liquidity and clear $67.4 million in debt held by Stronghold. Before the agreement, the company had $47 million in liquidity as of Aug. 12. <\/p>\n After Stronghold returns 26,000 rigs, with a total hash rate of 2.5 EH\/s, their operational fleet will be approximately 16,000 miners. Overall the hash rate capacity will be over 1.4 EH\/s and a total power draw of 50-55 megawatts. <\/p>\n The crypto market crash has played a significant role in the current difficulties for miners. In July,\u00a0Bitcoin (BTC<\/a>) mining revenue dropped to a one-year low<\/a> at nearly $15 million. It was around this time other mining operations, such as Compass Mining, were also forced to sell rigs <\/a>while facing bankruptcy. <\/p>\n For the past three months, Bitcoin miners hodl-ed 27% less<\/a> due to the need for major sell offs.<\/p>\n Industry insiders refer to the bear market as a moment in crypto that will weed out operations that lack long-term sustainability while allowing others to restructure. <\/p>\n Related: <\/u><\/em><\/strong>The best bear market plan? \u2018Relentless optimism for the future,\u2019 says fintech CEO<\/em><\/strong><\/a><\/p>\n Stronghold\u2019s restructuring and expansion also come with an agreement with WhiteHawk, which adds an additional $20 million available for borrowing. According to the official statement, the company will \u201c opportunistically\u201d deploy the capital to purchase new miners.<\/p>\n Greg Beard, co-chairman and chief executive officer of Stronghold, said the restructuring will provide, \u201csignificantly improved liquidity and flexibility to deploy capital opportunistically in a way that creates equity value through cycles in the Bitcoin and power market.\u201d <\/p>\n Despite the sell-offs, restructuring could be a move in the right direction as experts say there is still long-term profitability<\/a> in crypto mining. After reaching its low in July, mining revenue reversed its trajectory with a 68.6% increase in August.\u00a0<\/p>\n