Stronghold Digital Mining announced on Jan. 3 that it has reached an agreement with its noteholders to restructure $17.9 million of outstanding debt.

Notes are like an IOU from a borrower to a lender and constitute an obligation to pay regular interest to the lender in addition to the repayment of the principal at a future date. Therefore, noteholders effectively refer to investors or lenders of the company.

Under the agreement, the 10% convertible notes representing a debt of $17.9 million, including principal and interest accrued through maturity, will be extinguished. In exchange, Stronghold Digital will issue a series of convertible preferred stocks with a face value of around $23.1 million to the noteholders, it said in a press release.

(by Monika Ghosh)