0001628280-23-010251 | 10-K | XBRL Viewer | Stronghold Digital Mining INC

DEBT

NOTE 6 – DEBT

Debt consisted of the following as of December 31, 2022, and December 31, 2021:


	December 31, 2022			December 31, 2021
$66,076 loan, with interest at 5.55% due July 2021	$	—		$	3,054
$75,000 loan, with interest at 12.67% due April 2021.	—			7,312
$499,520 loan, with interest at 2.49% due December 2023.	124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023.	121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022.	—			103,857
$517,465 loan, with interest at 4.78% due October 2024.	339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025.	513,334			—
$431,825 loan, with interest at 7.60% due April 2024.	121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023.	—		[A]	28,149,998
$25,000,000 loan, with interest at 10.00%, due March 2024.	—		[B]	—
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025.	56,114,249		[C]	—
$10,641,362 loan, with interest at 10.00% due June 2023.	—		[D]	7,546,542
$14,077,800 loan, with interest at 10.00% due June 2023.	—		[E]	9,982,551
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[F]	9,891,200
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[G]	7,319,488
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[H]	—
$33,750,000 Convertible Note, with interest at 10.00% due May 2024.	16,812,500		[I]	—
$92,381 loan, with interest at 1.49% due April 2026.	79,249			—
$64,136 loan, with interest at 11.85% due May 2024.	39,056			—
$196,909 loan, with interest at 6.49% due May 2024.	184,895			—
Total outstanding borrowings	$	74,449,664		$	64,178,492

Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt, net of discounts and issuance fees	$	57,027,118		$	18,378,841

[A] WhiteHawk Promissory Note agreement with a term of 24 months. On December 31, 2021, the Company amended the WhiteHawk Financing Agreement (as defined below, the “WhiteHawk Amendment”) to extend the final MinerVa delivery date from December 31, 2021, to April 30, 2022. Pursuant to the WhiteHawk Amendment, Equipment paid an amendment fee in the amount of $250,000 to WhiteHawk Finance LLC ("WhiteHawk"), which were included in deferred debt issuance costs. This debt was effectively extinguished as of October 27, 2022. See additional details below.

[B] WhiteHawk Promissory Note agreement with a term of 24 months. Pursuant to the Second WhiteHawk Amendment, Equipment LLC paid an amendment fee in the amount of $275,414 and a closing fee of $500,000 to WhiteHawk, which were included in deferred debt issuance costs. This debt was effectively extinguished as of October 27, 2022. See additional details below.

[C] On October 27, 2022, the Company entered into a secured Credit Agreement with WhiteHawk to refinance the WhiteHawk Financing Agreement, effectively terminating the WhiteHawk Financing Agreement. The Credit Agreement consists of $35.1 million in term loans and a $23.0 million Delayed Draw Facility. The borrowings under the WhiteHawk Refinancing Agreement mature on October 26, 2025. The loan under the Delayed Draw Facility was issued with a 3% closing fee on the drawn amount, paid when such amount was drawn on the closing date of the Credit Agreement.

[D] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[E] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[F] Second NYDIG Financing Agreement (as defined below) with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[G] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[H] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[I] Convertible Note with a term of 24 months.

Extinguishment of NYDIG Financing Agreements

On August 16, 2022, the Company, Stronghold LLC, SDM and Stronghold Digital Mining BT, LLC, a Delaware limited liability company (“Digital Mining BT" and, together with SDM, the “APA Sellers” and, together with the Company and Stronghold LLC, the “APA Seller Parties”), entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”)

with NYDIG, formerly known as Arctos Credit, LLC, and The Provident Bank, a Massachusetts savings bank (“BankProv” and, together with NYDIG, “Purchasers” and each, a “Purchaser”).

Pursuant to the master equipment financing agreement entered into between SDM and Arctos Credit, LLC (“Arctos” now known as “NYDIG”) on June 25, 2021 (the “Arctos/NYDIG Financing Agreement”), and the master equipment financing agreement entered into between Digital Mining BT and NYDIG on December 15, 2021 (the “Second NYDIG Financing Agreement” and together with the Arctos/NYDIG Financing Agreement, the “NYDIG Financing Agreements”), certain miners were pledged as collateral under such agreements (and together with certain related agreements to purchase miners, the “APA Collateral”). Under the Asset Purchase Agreement, the APA Seller Parties agreed to sell, and the Purchasers (or their respective designee) agreed to purchase, the APA Collateral in a private disposition in exchange for the forgiveness, reduction and release of all principal, interest and fees owing under each of the NYDIG Agreements (collectively, the “NYDIG Debt”). The Sellers agreed to clean, service, package, ship, and deliver the APA Collateral and to bear the costs associated with such activities. Following (i) delivery of the APA Collateral to the Purchasers or their designees pursuant to a master bill of sale and (ii) a subsequent inspection period of up to 14 days (which may be extended up to seven additional days), upon acceptance of the APA Collateral, the related portion of the NYDIG Debt was to be assigned to the Sellers and cancelled pursuant to the terms of the Asset Purchase Agreement (each, a “Settlement”).

As a result of this transaction, the Company incurred a loss on debt extinguishment of $19,475,514 in the third quarter of 2022, comprising a loss on debt extinguishment of $15,316,510 and an impairment on assets held for sale of $4,159,004. As of September 30, 2022, three of the seven tranches of the NYDIG Debt were extinguished in conjunction with the sale of the associated miners and was recorded as a loss on debt extinguishment. The remaining four tranches of the NYDIG Debt, totaling $39,998,415 (excluding deferred debt issuance costs and discounts), were extinguished in October 2022.

WhiteHawk Refinancing Agreement

On October 27, 2022, the Company entered into a secured credit agreement (the “Credit Agreement”) with WhiteHawk to refinance the WhiteHawk Financing Agreement, effectively terminating the WhiteHawk Financing Agreement. The Credit Agreement consists of $35.1 million in term loans and $23.0 million in additional commitments (such additional commitments, the “Delayed Draw Facility”). Such loans under the Delayed Draw Facility were drawn on the closing date of the Credit Agreement.

The financing pursuant to the Credit Agreement (such financing, the “WhiteHawk Refinancing Agreement”) was entered into by Stronghold LLC as Borrower (the “Borrower”) and is secured by substantially all of the assets of the Company and its subsidiaries and is guaranteed by the Company and each of its material subsidiaries. The WhiteHawk Refinancing Agreement requires equal monthly amortization payments resulting in full amortization at maturity. The WhiteHawk Refinancing Agreement has customary representations, warranties and covenants including restrictions on indebtedness, liens, restricted payments and dividends, investments, asset sales and similar covenants and contains customary events of default. The WhiteHawk Refinancing Agreement contains a covenant requiring the Borrower and its subsidiaries to maintain a minimum (x) of $7.5 million of liquidity at all times, (y) a minimum liquidity of $10 million of average daily liquidity for each calendar month (rising to $20 million beginning July 01, 2023) and (z) a maximum total leverage ratio covenant of (i) 7.5:1.0 for the quarter ending December 31, 2022, (ii) 5.0:1.0 for the quarter ending March 31, 2023, (iii) 4.0:1.0 for the quarter ending June 30, 2023, and (iv) 4.0:1.0 for each quarter ending thereafter.

The borrowings under the WhiteHawk Refinancing Agreement mature on October 26, 2025, and bear interest at a rate of either (i) the Secured Overnight Financing Rate ("SOFR") plus 10% or (ii) a reference rate equal to the greater of (x) 3%, (y) the federal funds rate plus 0.5% and (y) the Term SOFR rate plus 1%, plus 9%. The loan under the Delayed Draw Facility was issued with a 3% closing fee on the drawn amount, paid when such amount was drawn on the closing date of the Credit Agreement. Amounts drawn on the WhiteHawk Refinancing Agreement are subject to a prepayment premium such that the lenders thereunder achieve a 20% return on invested capital. The Company also issued a stock purchase warrant to WhiteHawk in conjunction with the closing of the WhiteHawk Refinancing Agreement, which provides for the purchase of an additional 4,000,000 shares of Class A common stock at an exercise price of $0.01 per share. Borrowings under the WhiteHawk Refinancing Agreement may also be accelerated in certain circumstances.

In accordance with ASC 470, Debt, the transaction noted above was determined to be an extinguishment of the existing debt and an issuance of new debt. As a result, the Company recorded a loss on debt extinguishment of $7,661,682 in the consolidated statement of operations for the year ended December 31, 2022, including $2,796,084 for the write-off of deferred financing fees related to the extinguished debt and $1,115,000 of new fees paid to WhiteHawk. The remaining loss of $3,750,598 resulted from recording the new debt at fair value, primarily for the stock purchase warrant issued to WhiteHawk described above.

On February 6, 2023, the Company, Stronghold LLC, as borrower, their subsidiaries and WhiteHawk Capital Partners LP, as collateral agent and administrative agent, and the other lenders thereto, entered into an amendment to the Credit Agreement (the “First Amendment”) in order to modify certain covenants and remove certain prepayment requirements contained therein. As a result of the First Amendment, amortization payments for the period from February 2023 through July 2024 will not be required, with monthly amortization resuming July 31, 2024. Beginning June 30, 2023, following a five-month holiday, Stronghold LLC will make monthly prepayments of the loan in an amount equal to 50% of its average daily cash balance (including cryptocurrencies) in excess of $7,500,000 for such month. The First Amendment also modifies the financial covenants to (i) in the case of the requirement of the Company to maintain a leverage ratio no greater than 4.00:1.00, such covenant will not be tested until the fiscal quarter ending September 30, 2024, and (ii) in the case of the minimum liquidity covenant, modified to require minimum liquidity at any time to be not less than: (A) until March 31, 2024, $2,500,000; (B) during the period beginning April 1, 2024, through and including December 31, 2024, $5,000,000; and (C) from and after January 1, 2025, $7,500,000. The Company was in compliance with all applicable covenants under the WhiteHawk Refinancing Agreement as of December 31, 2022.

Convertible Note Exchange

On December 30, 2022, the Company entered into an exchange agreement with the holders (the “Holders”) of the Company’s Amended and Restated 10% Notes (the “Notes”), providing for the exchange of the Notes (the “Exchange Transaction”) for shares of the Company’s newly-created Series C Convertible Preferred Stock, par value $0.0001 per share (the “Series C Preferred Stock”). On February 20, 2023, the Exchange Transaction was consummated, and the Notes were paid in full. Approximately $16.9 million of principal amount of debt was extinguished in exchange for the issuances of the shares of Series C Preferred Stock.

On February 20, 2023, in connection with the consummation of the Exchange Transaction, the Company entered into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”) whereby it agreed to, among other things, (i) file within two business days following the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, a resale registration statement (the “Resale Registration Statement”) with the Securities and Exchange Commission covering all shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”) issuable upon conversion of the Series C Preferred Stock or upon exercise of the pre-funded warrants that may be issued in lieu of Common Stock upon conversion of the Series C Preferred Stock (the “Pre-funded Warrants”), and (ii) to cause the Resale Registration Statement to become effective within the timeframes specified in the Registration Rights Agreement.

Future scheduled maturities on the outstanding borrowings for each of the next five years as of December 31, 2022, are as follows:


Years ending December 31:
2023	$	17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	—
	$	74,449,664

NOTE 10 – PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

On March 16, 2021, the Company received a round two Paycheck Protection Program ("PPP") loan in the amount of $841,670 that accrues interest at 1% per year and matures on the fifth anniversary of the date of the note. In January 2021, the Company was granted relief as forgiveness for the round one PPP loan in the amount of $638,800. On May 25, 2022, the Company was granted relief as forgiveness for the second round PPP loan in the amount of $841,670.

On June 8, 2021, the Company repaid the Economic Injury Disaster Loan (“EIDL”), received on March 31, 2020, in the amount of $150,000.

NOTE 28 – FINANCED INSURANCE PREMIUMS

Effective October 20, 2022, the Company renewed its director and officer insurance policy for an additional 12 months with annual premiums totaling $5,484,449. On November 8, 2022, the Company executed a Commercial Premium Finance Agreement with AFCO Premium Credit LLC over a term of nine months, with an annual interest rate of 9.460%, that financed the payment of the total premiums owed. The agreement required a $750,000 down payment, with the remaining $4,734,449 plus interest to be paid over nine months. As of December 31, 2022, the unpaid balance was $4,208,399.

Effective September 10, 2022, the Company entered into a commercial property insurance policy with annual premiums totaling $367,493. The Company executed a Commercial Premium Finance Agreement with AON Premium Finance, over a term of eleven months, with an annual interest rate of 7.460%, that financed the payment of the total premiums owed. As of December 31, 2022, the unpaid balance was $246,487.

Effective April 29, 2022, the Company entered into a commercial property insurance policy with annual premiums totaling $523,076. The Company executed a Commercial Premium Finance Agreement with AFCO Premium Credit LLC, over a term of eleven months, with an annual interest rate of 5.99%, that financed the payment of the total premiums owed. The agreement required a $44,793 down payment, with the remaining $478,283 plus interest to be paid over eleven months. As of December 31, 2022, the unpaid balance was $133,049.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Total Stock-Based Compensation Expense

The Company recognized total stock-based compensation expense for the years ended December 31, 2022, and 2021, from the following categories:


	December 31, 2022		December 31, 2021
Restricted stock awards under the Plan	3,592,641		172,800
Stock option awards under the Plan	10,297,709		3,842,524
Total stock-based compensation	$	13,890,350	$	4,015,324

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following are the weighted-average assumptions used in calculating the fair value of the total stock options granted during 2022 using the Black-Scholes method.


	December 31, 2022			December 31, 2021
Weighted-average fair value of options granted	$	10.21		$	7.64
Expected volatility	125.85		%	128.14		%
Expected life (in years)	5.81			5.77
Risk-free interest rate	1.69		%	0.93		%
Expected dividend yield	0		%	0		%

Schedule of Stock Options Roll Forward

The following table summarizes the Company's stock option activity for the years ended December 31, 2022, and 2021.


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	—	$	—	—	$	—
Granted	3,379,083	8.91		9.61	—
Exercised	—	—		—	—
Cancelled/forfeited	—	—		—	—
Outstanding at December 31, 2021	3,379,083	$	8.91	9.61	$	30,906,003
Granted	205,964	10.61		9.11	—
Exercised	—	—		—	—
Cancelled/forfeited	(35,000)	18.06		8.68	—
Outstanding at December 31, 2022	3,550,047	9.03		9.00	—
Shares vested and expected to vest	3,550,047	$	9.03	8.62	$	—
Exercisable as of December 31, 2022	1,721,821	$	9.06	8.60	$	—

Nonvested Restricted Stock Shares Activity

The following table summarizes the Company's RSU activity for the years ended December 31, 2022, and 2021.


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021	—	$	—
Vested	—	—
Granted	60,737	11.10
Forfeited	—	—
Unvested at December 31, 2021	60,737	$	11.10
Vested	(319,959)	5.36
Granted	1,687,111	3.76
Forfeited	(8,358)	3.88
Unvested at December 31, 2022	1,419,531	$	4.35

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 – COMMITMENTS AND CONTINGENCIES Commitments: As disclosed in Note 4 – Equipment Deposits And Miner Sales, the Company has entered into various equipment contracts to purchase miners. Most of these contracts required a percentage of deposits upfront and subsequent future payments to cover the contracted purchase price of the equipment. Details of the outstanding purchase agreement with MinerVa are summarized below. MinerVa Semiconductor Corp On April 2, 2021, the Company entered into a purchase agreement (the "MinerVa Purchase Agreement") with MinerVa for the acquisition of 15,000 of their MV7 ASIC SHA256 model cryptocurrency miner equipment (miners) with a total terahash to be delivered equal to 1.5 million terahash (total terahash). The price per miner was $4,892.50 for an aggregate purchase price of $73,387,500 to be paid in installments. The first installment equal to 60% of the purchase price, or $44,032,500, was paid on April 2, 2021, and an additional payment of 20% of the purchase price, or $14,677,500, was paid on June 2, 2021. As of December 31, 2022, there were no remaining deposits owed. In December 2021, the Company extended the deadline for delivery of the MinerVa miners to April 2022. In March 2022, MinerVa was again unable to meet its delivery date and has only delivered approximately 3,200 of the 15,000 miners. As a result, an impairment totaling $12,228,742 was recorded in the first quarter of 2022. Furthermore, in the fourth quarter of 2022, the difference between the fair value of the MinerVa equipment deposits and the carrying value resulted in the Company recording an additional impairment charge of $5,120,000. As of December 31, 2022, MinerVa had delivered, refunded cash, or swapped into deliveries of industry-leading miners of equivalent value to approximately 10,700 of the 15,000 miners. The aggregate purchase price does not include shipping costs, which are the responsibility of the Company and shall be determined at which time the miners are ready for shipment. While the Company continues to engage in discussions with MinerVa on the delivery of the remaining miners, it does not know when the remaining miners will be delivered, if at all. On July 18, 2022, the Company provided written notice of dispute to MinerVa pursuant to the MinerVa Purchase Agreement obligating the Company and MinerVa to work together in good faith towards a resolution for a period of sixty (60) days. In accordance with the MinerVa Purchase Agreement, if no settlement has been reached after sixty (60) days, Stronghold may end discussions and declare an impasse and adhere to the dispute resolution provisions of the MinerVa Purchase Agreement. As the 60-day period has now expired, the Company is evaluating all available remedies under the MinerVa Purchase Agreement. Contingencies: Legal Proceedings The Company experiences routine litigation in the normal course of business. Management is of the opinion that none of this routine litigation will have a material adverse effect on the Company’s reported financial position or results of operations. McClymonds Supply & Transit Company, Inc. and DTA, L.P. vs. Scrubgrass Generating Company, L.P. On January 31, 2020, McClymonds Supply and Transit Company, Inc. (“McClymonds”) made a Demand for Arbitration, as required by the terms of the Transportation Agreement between it and the Scrubgrass dated April 8, 2013 (the “Agreement”). In its demand, McClymonds alleged damages in the amount of $5,042,350 for failure to pay McClymonds for services. On February 18, 2020, Scrubgrass submitted its answering statement denying the claim of McClymonds in its entirety. On March 31, 2020, Scrubgrass submitted its counterclaim against McClymonds in the amount of $6,747,328 as the result of McClymonds’ failure to deliver fuel as required under the terms of the Agreement. Hearings were held from January 31, 2022, to February 3, 2022. On May 9, 2022, an award in the amount of $5.0 million plus interest of approximately $0.8 million was issued in favor of the McClymonds Supply & Transit. The two managing members of Q Power, LLC, have agreed to and begun to pay the full amount of the award such that there will be no effect on the financial condition of the Company. The managing members of Q Power LLC have executed a binding document to pay the full amount of the award. McClymonds shall have no recourse to the Company with respect to the award. Allegheny Mineral Corporation v. Scrubgrass Generating Company, L.P., Butler County Court of Common Pleas, No. AD 19-11039 In November 2019, Allegheny Mineral filed suit against the Company seeking payment of approximately $1,200,000 in outstanding invoices. In response, the Company filed counterclaims against Allegheny Mineral asserting breach of contract, breach of express and implied warranties, and fraud in the amount of $1,300,000. After unsuccessful mediation in August 2020, the parties again attempted to mediate the case on October 26, 2022, which led to a mutual agreement to settlement terms of a $300,000 cash payment, and a supply agreement for limestone. Subject to completion of the settlement terms, this matter has been stayed in Butler County Court and the outstanding litigation has been terminated. FERC Matters On November 19, 2021, Scrubgrass received a notice of breach from PJM Interconnection, LLC alleging that Scrubgrass breached Interconnection Service Agreement – No. 1795 (the “ISA”) by failing to provide advance notice to PJM Interconnection, LLC and Mid-Atlantic Interstate Transmission, LLC (“MAIT”) pursuant to ISA, Appendix 2, section 3, of modifications made to the Scrubgrass Plant. On December 16, 2021, Scrubgrass responded to the notice of breach and respectfully disagreed that the ISA had been breached. On January 7, 2022, Scrubgrass participated in an information gathering meeting with representatives from PJM regarding the notice of breach and Scrubgrass continues to work with PJM regarding the dispute, including conducting a necessary study agreement with respect to the Scrubgrass Plant. On January 20, 2022, the Company sent PJM a letter regarding the installation of a resistive computational load bank at the Panther Creek Plant. On March 1, 2022, the Company executed a necessary study agreement with respect to the Panther Creek Plant. On May 11, 2022, the Division of Investigations of the FERC Office of Enforcement (“OE”) informed the Company that the Office of Enforcement is conducting a non-public preliminary investigation concerning Scrubgrass’ compliance with various aspects of the PJM tariff. The OE requested that the Company provide certain information and documents concerning Scrubgrass’ operations by June 10, 2022. On July 13, 2022, after being granted an extension to respond by the OE, the Company submitted a formal response to the OE's request. Since the Company submitted its formal response to the OE's request, the Company has had further discussions with the OE regarding the Company's formal response. The OE's investigation regarding potential instances of non-compliance is continuing. The Company does not believe the PJM notice of breach, the Panther Creek necessary study agreement, or the preliminary investigation by the OE will have a material adverse effect on the Company’s reported financial position or results of operations although the Company cannot predict with certainty the final outcome of these proceedings. Winter v. Stronghold Digital Mining Inc., et al., U.S District Court for the Southern District of New York On April 14, 2022, the Company, and certain of our current and former directors, officers and underwriters were named in a putative class action complaint filed in the United States District Court for the Southern District of New York. In the complaint, the plaintiffs allege that the Company made misleading statements and/or failed to disclose material facts in violation of Section 11 of the Securities Act, 15 U.S.C. §77k and Section 15 of the Securities Act, about the Company’s business, operations, and prospects in the Company’s registration statement on Form S-1 related to its initial public offering, and when subsequent disclosures were made regarding these operational issues when the Company announced its fourth quarter and full year 2021 financial results, the Company’s stock price fell, causing significant losses and damages. As relief, the plaintiffs are seeking, among other things, compensatory damages. On August 4, 2022, co-lead plaintiffs were appointed. On October 18, 2022, the Plaintiffs filed an amended complaint. On December 19, 2022, the Company filed a Motion to Dismiss. On February 17, 2023, the plaintiffs filed an opposition to the defendant's motion to dismiss. On March 20, 2023, the Company filed a reply brief in further support of its motion to dismiss. We cannot predict when the court will rule on our motion. The defendants believe the allegations in the initial complaint are without merit and intend to defend the suit vigorously.

STOCK-BASED COMPENSATION - Total Stock-Based Compensation Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 13,890,350	$ 4,015,324
Restricted stock awards under the Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	3,592,641	172,800
Stock option awards under the Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 10,297,709	$ 3,842,524

COVENANTS

12 Months Ended

Dec. 31, 2022

COVENANTS

NOTE 6 – DEBT

Debt consisted of the following as of December 31, 2022, and December 31, 2021:


	December 31, 2022			December 31, 2021
$66,076 loan, with interest at 5.55% due July 2021	$	—		$	3,054
$75,000 loan, with interest at 12.67% due April 2021.	—			7,312
$499,520 loan, with interest at 2.49% due December 2023.	124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023.	121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022.	—			103,857
$517,465 loan, with interest at 4.78% due October 2024.	339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025.	513,334			—
$431,825 loan, with interest at 7.60% due April 2024.	121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023.	—		[A]	28,149,998
$25,000,000 loan, with interest at 10.00%, due March 2024.	—		[B]	—
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025.	56,114,249		[C]	—
$10,641,362 loan, with interest at 10.00% due June 2023.	—		[D]	7,546,542
$14,077,800 loan, with interest at 10.00% due June 2023.	—		[E]	9,982,551
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[F]	9,891,200
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[G]	7,319,488
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[H]	—
$33,750,000 Convertible Note, with interest at 10.00% due May 2024.	16,812,500		[I]	—
$92,381 loan, with interest at 1.49% due April 2026.	79,249			—
$64,136 loan, with interest at 11.85% due May 2024.	39,056			—
$196,909 loan, with interest at 6.49% due May 2024.	184,895			—
Total outstanding borrowings	$	74,449,664		$	64,178,492

Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt, net of discounts and issuance fees	$	57,027,118		$	18,378,841

[D] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[E] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[F] Second NYDIG Financing Agreement (as defined below) with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[G] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[H] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[I] Convertible Note with a term of 24 months.

Extinguishment of NYDIG Financing Agreements

with NYDIG, formerly known as Arctos Credit, LLC, and The Provident Bank, a Massachusetts savings bank (“BankProv” and, together with NYDIG, “Purchasers” and each, a “Purchaser”).

WhiteHawk Refinancing Agreement

Convertible Note Exchange

Future scheduled maturities on the outstanding borrowings for each of the next five years as of December 31, 2022, are as follows:


Years ending December 31:
2023	$	17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	—
	$	74,449,664

NOTE 10 – PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

On June 8, 2021, the Company repaid the Economic Injury Disaster Loan (“EIDL”), received on March 31, 2020, in the amount of $150,000.

NOTE 28 – FINANCED INSURANCE PREMIUMS

Schedule of Noncontrolling Ownership Interest

COVENANTS (Details)	Dec. 31, 2022 USD ($)
Loan For Equipment Due June 2023, One \| Loans payable
Debt Instrument [Line Items]
Amendment fee	$ 250,000

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Jan. 10, 2022	Oct. 19, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 13,890,350	$ 4,015,324
Stock compensation expense, tax benefit	0
Cost not yet recognized	$ 13,466,789
Outstanding share options (in shares)	3,550,047	3,379,083			0
Payments for compensation to non-employee directors	$ 275,843	$ 0
Reversal of accrued compensation costs for non-employee directors		75,000
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments for compensation to non-employee directors	200,843
New Long-Term Incentive Plan (the “New LTIP”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				4,752,000
Non-Employee Directors Compensation Policy \| Share-based Payment Arrangement, Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option grants per individual (in shares)			10,000
Annual retainer amount			$ 100,000
Aggregate minimum annual retainer amount			$ 500,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 10,297,709	$ 3,842,524
Expected dividend yield	0.00%	0.00%
Cost not yet recognized, period for recognition	1 year 7 months 9 days
Stock options \| New Long-Term Incentive Plan (the “New LTIP”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period from grant date	10 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding (in shares)	1,419,531	60,737			0
Grant date fair value (in USD per share)	$ 4.35	$ 11.10			$ 0
Stock-based compensation expense	$ 3,592,641	$ 172,800
Cost not yet recognized, period for recognition	1 year 9 months 14 days
Unrecognized compensation expense	$ 3,881,290

RELATED-PARTY TRANSACTIONS - Narrative (Details)										9 Months Ended	12 Months Ended		24 Months Ended
RELATED-PARTY TRANSACTIONS - Narrative (Details)	Oct. 01, 2022 USD ($)	Jul. 27, 2022 USD ($)	Jul. 09, 2022 USD ($)	Feb. 01, 2022 USD ($)	Nov. 02, 2021 USD ($)	Aug. 02, 2021 USD ($)	Jul. 09, 2021 USD ($)	May 10, 2021 USD ($)	May 09, 2021 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) $ / T owner T	Dec. 31, 2021 USD ($)	Oct. 31, 2023 USD ($)
Coal Valley Properties, LLC
Related Party Transaction [Line Items]
Number of owners \| owner											1
Q Power LLC \| Coal Reclamation Partnership
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners											16.26%
Affiliated Entity \| Olympus Stronghold Services, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											$ 1,086,649	$ 129,735
Affiliated Entity \| Waste Coal Agreement (the “WCA”) \| Coal Valley Sales, LLC
Related Party Transaction [Line Items]
Waste coal annual quantity committed (in ton) \| T											200,000
Waste coal, handling fee (in USD per ton) \| $ / T											6.07
Waste coal commitment, units in excess of annual commitment, price per unit (in USD per ton) \| $ / T											1.00
Expenses from transactions with related party											$ 733,458	303,500
Affiliated Entity \| Fuel Service and Beneficial Use Agreement ("FBUA") \| Northampton Fuel Supply Company, Inc.
Related Party Transaction [Line Items]
Expenses from transactions with related party											3,121,423
Affiliated Entity \| Fuel Management Agreement \| Panther Creek Fuel Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											1,697,850	303,500
Affiliated Entity \| Fuel Management Agreement \| Scrubgrass Fuel Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											780,410
Affiliated Entity \| Management Fee \| Olympus Stronghold Services, LLC \| Forecast
Related Party Transaction [Line Items]
Expenses from transactions with related party													$ 1,000,000
Affiliated Entity \| Management Fee \| Panther Creek Energy Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party			$ 325,000			$ 175,000	$ 250,000
Related party transaction, period							12 months
Affiliated Entity \| Management Fee \| Scrubgrass Energy Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party		$ 325,000		$ 175,000			$ 250,000
Related party transaction, period							12 months
Affiliated Entity \| Mobilization Fee \| Olympus Stronghold Services, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party					$ 150,000
Affiliated Entity \| Management Fee, Panther Creek Plant \| Olympus Stronghold Services, LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 500,000									$ 1,000,000
Reduction of expenses from transactions with related party	$ 500,000
Affiliated Entity \| Operations and Maintenance Agreement \| Panther Creek Energy Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											3,877,338	1,027,860
Affiliated Entity \| Operations and Maintenance Agreement \| Scrubgrass Energy Services LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											6,476,968
Affiliated Entity \| Management Services Agreement \| William Spence
Related Party Transaction [Line Items]
Expenses from transactions with related party											550,000	600,000
Affiliated Entity \| Management Services Agreement \| Q Power LLC \| William Spence
Related Party Transaction [Line Items]
Monthly management fee								$ 50,000	$ 25,000
Chief Executive Officer \| Beard Aviation LLC
Related Party Transaction [Line Items]
Expenses from transactions with related party											$ 0	$ 69,000

EARNINGS (LOSS) PER SHARE - Potentially Dilutive Securities (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	May 15, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	33,817,879	28,209,600
Warrant exercise price of warrants (in USD per share)	$ 0.01		$ 2.50
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,721,821	0
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	319,959	0
Warrants (excluding those with $0.01 exercise price)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,718,499	0
Preferred Stock \| Series A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	1,152,000
Common Stock - Class V \| Common Class V
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	26,057,600	27,057,600

EARNINGS (LOSS) PER SHARE - Narrative (Details) - shares	Mar. 28, 2023	Mar. 31, 2023	May 15, 2022
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)			6,318,000
Subsequent Event
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)		4,574,350
Subsequent Event \| Series C Convertible Preferred Stock
Class of Warrant or Right [Line Items]
Conversion of convertible redeemable preferred units to common stock (in shares)	1,530
Subsequent Event \| Common Stock
Class of Warrant or Right [Line Items]
Conversion of convertible redeemable preferred units to common stock (in shares)	3,825,000

BUSINESS COMBINATIONS	12 Months Ended
BUSINESS COMBINATIONS	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS COMBINATIONS	NOTE 1 – BUSINESS COMBINATIONS Reorganization Stronghold Digital Mining, Inc. (“Stronghold Inc.” or the "Company") was incorporated as a Delaware corporation on March 19, 2021. On April 1, 2021, contemporaneously with the Series A Private Placement (as defined below), Stronghold Inc. underwent a corporate reorganization pursuant to a Master Transaction Agreement, which will be referred to herein as the “Reorganization.” Immediately prior to the Reorganization, Q Power LLC (“Q Power”) directly held all of the equity interests in Stronghold Digital Mining LLC (“SDM”), and indirectly held 70% of the limited partner interests, and all of the general partner interests, in Scrubgrass Reclamation Company, L.P. (f/k/a Scrubgrass Generating Company, L.P.) (“Scrubgrass LP”), through wholly-owned subsidiaries EIF Scrubgrass LLC (“EIF Scrubgrass”), Falcon Power LLC (“Falcon”) and Scrubgrass Power LLC. Aspen Scrubgrass Participant, LLC ("Aspen") held the remaining 30% of the limited partner interests in Scrubgrass LP (the “Aspen Interest”). Scrubgrass LP is a Delaware limited partnership originally formed on December 1, 1990, under the name of Scrubgrass Generating Company, L.P. SDM is a Delaware limited liability company originally formed on February 12, 2020, under the name Stronghold Power LLC (“Stronghold Power”). On April 1, 2021, Stronghold Inc. entered into a Series A Preferred Stock Purchase Agreement pursuant to which Stronghold Inc. issued and sold 9,792,000 shares of Series A Convertible Redeemable Preferred Stock (the “Series A Preferred Stock”) in a private offering (the “Series A Private Placement”), at a price of $8.68 per share, to various accredited individuals in reliance upon exemptions from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D thereunder for aggregate consideration of approximately $85.0 million. In connection with the Series A Private Placement, the Company incurred approximately $6.3 million in fees and $631,897 as debt issuance costs for warrants issued as part of the Series A Private Placement. Contemporaneously with the Reorganization, Stronghold Inc. acquired the Aspen Interest using 576,000 shares of newly issued Series A Preferred Stock and $2,000,000 from a portion of the proceeds from the Series A Private Placement. The acquisition of the Aspen Interest was for a total consideration of $7,000,000 that consisted of the $2,000,000 in cash plus a valuation of $5,000,000 for the 576,000 shares of the Series A Preferred Stock at the issuance per share price of $8.68 and are classified as permanent equity and not subject to mandatory redemptions as outlined in Stronghold Inc.'s certificate of incorporation, as amended (the “Charter”). Pursuant to the Reorganization, Q Power contributed all of its ownership interests in EIF Scrubgrass, Falcon and SDM to Stronghold Digital Mining Holdings LLC (“Stronghold LLC”) in exchange for 27,072,000 Class A common units of Stronghold LLC (“Stronghold LLC Units”). Stronghold Inc. contributed cash (using the remaining proceeds from the Series A Private Placement, net of fees, expenses and amounts paid to Aspen), 27,072,000 shares of Class V common stock of Stronghold Inc. and the Aspen Interest to Stronghold LLC in exchange for 10,368,000 preferred units of Stronghold LLC, and Stronghold LLC immediately thereafter distributed the 27,072,000 shares of Class V common stock to Q Power. In addition, effective as of April 1, 2021, Stronghold Inc. acquired 14,400 Stronghold LLC Units held by Q Power (along with an equal number of shares of Class V common stock) in exchange for 14,400 newly issued shares of Class A common stock. As a result of the Reorganization, the acquisition of the Aspen Interest and the acquisition of Stronghold LLC Units by Stronghold Inc. discussed above, (a) Q Power acquired and retained 27,057,600 Stronghold LLC Units, 14,400 shares of Class A common stock of Stronghold Inc. and 27,057,600 shares of Class V common stock of Stronghold Inc., effectively giving Q Power approximately 69% of the voting power of Stronghold Inc. and approximately 69% of the economic interest in Stronghold LLC, (b) Stronghold Inc. acquired 10,368,000 preferred units of Stronghold LLC and 14,400 Stronghold LLC Units, effectively giving Stronghold Inc. approximately 31% of the economic interest in Stronghold LLC, (c) Stronghold Inc. became the sole managing member of Stronghold LLC and is responsible for all operational, management and administrative decisions relating to Stronghold LLC’s business and consolidates financial results of Stronghold LLC and its subsidiaries, (d) Stronghold Inc. became a holding company whose only material asset consists of membership interests in Stronghold LLC, and (e) Stronghold LLC directly or indirectly owns all of the outstanding equity interests in the subsidiaries through which the Company operates its assets, including Scrubgrass LP and SDM. On May 14, 2021, the Company completed a private placement of shares of the Company’s Series B Convertible Redeemable Preferred Stock of Stronghold Inc. (the “Series B Preferred Stock,” and, together with the Series A Preferred Stock, the “Preferred Stock”) (the “Series B Private Placement,” and, together with the Series A Private Placement, the “Private Placements”). The terms of the Series B Preferred Stock are substantially similar to the Series A Preferred Stock, except for differences in the stated value of such shares in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or certain deemed liquidation events. In connection with the Series B Private Placement, the Company sold 1,817,035 shares of its Series B Preferred Stock for an aggregate purchase price of $20.0 million. The Company also incurred approximately $1.6 million in fees and expenses and $148,575 as debt issuance costs for warrants issued as part of the Series B Private Placement. Pursuant to the terms of the Preferred Stock, on (i) the date that a registration statement registering the shares of Class A common stock issuable upon the conversion of the Preferred Stock is declared effective by the U.S. Securities and Exchange Commission (the "SEC") or (ii) the date on which a “Significant Transaction Event” occurs, as defined in the Company's second amended and restated certificate of incorporation, such shares of Preferred Stock will automatically convert into shares of Class A common stock of Stronghold Inc. on a one-to-one basis, subject to certain adjustments as set forth in the Charter. Correspondingly, pursuant to the Second Amended and Restated Limited Liability Company Agreement of Stronghold LLC, as amended from time to time (the “Stronghold LLC Agreement”), preferred units in Stronghold LLC automatically convert into Stronghold LLC Units on a one-to-one basis under like circumstances (subject to corresponding adjustments). On October 19, 2021, the registration statement registering the shares of Class A common stock issuable upon conversion of the Preferred Stock was declared effective by the SEC, and all of the outstanding shares of Preferred Stock converted into shares of Class A common stock at that time. Correspondingly, all of the preferred units in Stronghold LLC converted into Stronghold LLC Units. On June 29, 2021, Stronghold LLC formed Stronghold Digital Mining Equipment, LLC (“Equipment LLC”). On October 27, 2021, Stronghold Digital Mining Operating, LLC ("Operating LLC") formed Stronghold Digital Mining BT, LLC ("Digital Mining BT"). On December 10, 2021, Operating LLC formed Stronghold Digital Mining TH, LLC ("TH LLC"). Prior to the Reorganization Prior to the Reorganization on April 1, 2021, Scrubgrass Generating Company, L.P. (“Scrubgrass”) existed as a Delaware limited partnership formed on December 1, 1990. Q Power LLC existed as a multi-member limited liability company and indirectly held limited and general partner interests of Scrubgrass. Additionally, Aspen, a wholly-owned subsidiary of Olympus Power, LLC (together with its affiliates “Olympus”), was a limited partner of Scrubgrass. Scrubgrass had two subsidiaries: (1) Clearfield Properties, Inc. (“Clearfield”), which was formed for the purpose of purchasing a 175-acre site in Clearfield County, Pennsylvania, and acquiring access to certain coal material; and (2) Leesburg Properties, Inc. (“Leesburg”), which was formed for the purpose of acquiring access rights to certain waste coal sites. Leesburg was a dormant entity as of December 31, 2022, and 2021. Pursuant to an equity Assignment and Assumption agreement dated September 24, 2020, Q Power assigned a 50%-member interest to a second individual. As a result, two individuals were the sole members of Q Power. Stronghold Power was established on February 12, 2020, as a Delaware limited liability company and is 100% owned by Q Power. Stronghold Power was created to pursue opportunities involving cryptocurrency mining as well as providing hosting services for third-party miners. Scrubgrass and Stronghold Power were under common control prior to the Reorganization on April 1, 2021, and consolidated financial statements reported as of December 31, 2020, and are included in the consolidated statements of operations for the years ended December 31, 2022, and 2021.

WARRANTS

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

WARRANTS

NOTE 13 – WARRANTS

The following table summarizes outstanding warrants as of December 31, 2022, and 2021, and activity for the years then ended.


			Number of Warrants
Outstanding as of January 1, 2021			—
Issued			297,795
Exercised			—
Outstanding as of December 31, 2021			297,795
Issued			21,393,561
Exercised			(5,816,250)
Outstanding as of December 31, 2022			15,875,106

May 2022 Private Placement

On May 15, 2022, the Company entered into a note and warrant purchase agreement, by and among the Company and the purchasers thereto, whereby the Company agreed to issue and sell (i) $33,750,000 aggregate principal amount of 10.00% unsecured convertible promissory notes and (ii) warrants representing the right to purchase up to 6,318,000 shares of Class A common stock, of the Company with an exercise price per share equal to $2.50. The promissory notes and warrants were sold for aggregate consideration of $27.0 million.

On August 16, 2022, the Company amended the note and warrant purchase agreement, such that $11.25 million of the outstanding principal was exchanged for the execution of an amended and restated warrant agreement pursuant to which the strike price of the 6,318,000 warrants was reduced from $2.50 to $0.01. Refer to Note 29 – Private Placements for additional details.

On November 15, 2022, the Company elected to issue an additional 3,243,416 of warrants (in lieu of cash) for the November 2022 convertible note amortization payment. Subsequently, during the fourth quarter of 2022, the convertible note holders exercised 6,424,324 of the outstanding warrants.

September 2022 Private Placement

On September 13, 2022, the Company entered into Securities Purchase Agreements with Armistice Capital Master Fund Ltd. and Greg Beard, the Company's Chairman and Chief Executive Officer, for the purchase and sale of Class A common stock and warrants. Refer to Note 29 – Private Placements for additional details. As part of the transaction, Armistice purchased the pre-funded warrants for 2,725,650 shares of Class A common stock at a purchase price of $1.60 per warrant. The pre-funded warrants have an exercise price of $0.0001 per warrant share.

WhiteHawk Refinancing Agreement

As detailed in Note 6 – Debt, on October 27, 2022, the Company entered into the Credit Agreement with WhiteHawk to refinance the WhiteHawk Financing Agreement, effectively terminating the WhiteHawk Financing Agreement. In conjunction with the closing of the WhiteHawk Refinancing Agreement, the Company issued a stock purchase warrant to WhiteHawk, which provides for the purchase of an additional 4,000,000 shares of Class A common stock at an exercise price of $0.01 per share.

WhiteHawk Finance LLC

On June 30, 2021, Equipment LLC entered into a $40,000,000 promissory note with WhiteHawk. The note had a maturity date of June 23, 2023, but was effectively extinguished on October 27, 2022, when the Company entered into the WhiteHawk Refinancing Agreement. In conjunction with the promissory note, on June 30, 2021, Equipment LLC also entered into a stock purchase warrant agreement, where Equipment LLC issued 181,705 warrants to WhiteHawk Finance LLC to purchase shares of Class A common stock of Equipment LLC.

On March 28, 2022, Equipment LLC entered into a $25,000,000 promissory note with WhiteHawk. The note had a maturity date of March 31, 2024, but was effectively extinguished on October 27, 2022, when the Company entered into the WhiteHawk Refinancing Agreement. In conjunction with the promissory note, on March 28, 2022, Equipment LLC also entered into a stock purchase warrant agreement, where Equipment LLC issued 125,000 warrants to WhiteHawk Finance LLC to purchase shares of Class A common stock of Equipment LLC.

B. Riley Securities, Inc.

On April 1, 2021, and May 14, 2021, Stronghold Inc. entered into a warrant agreement with American Stock Transfer & Trust Company. B. Riley Securities, Inc. acted as the Company’s placement agent in connection with the Private Placements, and in connection therewith, the Company issued B. Riley Securities, Inc. (i) a five-year warrant to purchase up to 97,920 shares of Series A preferred stock at a per share exercise price of $8.68 and (ii) a five-year warrant to purchase up to 18,170 shares of Series B preferred stock at a per share exercise price of $11.01.

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
ASSETS:
Cash and cash equivalents	$ 13,296,703	$ 31,790,115
Digital currencies	109,827	7,718,221
Digital currencies, restricted	0	2,699,644
Accounts receivable	10,837,126	2,111,855
Due from related parties	73,122	0
Prepaid insurance	4,877,935	6,301,701
Inventory	4,471,657	3,372,254
Other current assets	1,975,300	661,640
Total current assets	35,641,670	54,655,430
Equipment deposits	10,081,307	130,999,398
Property, plant and equipment, net	167,204,681	166,657,155
Land	1,748,440	1,748,440
Road bond	211,958	211,958
Operating lease right-of-use assets	1,719,037	0
Security deposits	348,888	348,888
TOTAL ASSETS	216,955,981	354,621,269
LIABILITIES:
Current portion of long-term debt, net of discounts and issuance fees	17,422,546	45,799,651
Current portion of operating lease liabilities	593,063	0
Financed insurance premiums	4,587,935	4,299,721
Forward sale contract	0	7,116,488
Accounts payable	27,540,317	28,650,659
Due to related parties	1,375,049	1,430,660
Accrued liabilities	8,893,248	5,053,957
Total current liabilities	60,412,158	92,351,136
Asset retirement obligation	1,023,524	973,948
Contract liabilities	351,490	187,835
Long-term operating lease liabilities	1,230,001	0
Paycheck Protection Program Loan	0	841,670
Warrant liabilities	2,131,959	0
Long-term debt, net of discounts and issuance fees	57,027,118	18,378,841
Total liabilities	122,176,250	112,733,430
COMMITMENTS AND CONTINGENCIES (NOTE 8)
REDEEMABLE COMMON STOCK:	11,754,587	301,052,617
Equity [Abstract]
Preferred Stock, Value, Issued	0	37,670,161
Common Stock, Value, Issued	3,171	2,002
Accumulated deficits	(240,443,302)	(338,709,688)
Additional paid-in capital	323,465,275	241,872,747
Total stockholders' equity (deficit)	83,025,144	(59,164,778)
Total redeemable common stock and stockholders' equity (deficit)	94,779,731	241,887,839
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)	216,955,981	354,621,269
Common Stock - Class V
LIABILITIES:
REDEEMABLE COMMON STOCK:	$ 11,754,587	$ 301,052,617

REDEEMABLE COMMON STOCK - Narrative (Details)					12 Months Ended
REDEEMABLE COMMON STOCK - Narrative (Details)	Oct. 22, 2021 $ / shares shares	Oct. 19, 2021 USD ($) $ / shares	May 14, 2021 USD ($) shares	Apr. 01, 2021 USD ($) $ / shares shares	Dec. 31, 2022 vote $ / shares	Dec. 31, 2021 $ / shares	Sep. 19, 2022 $ / shares
Temporary Equity [Line Items]
Sale of stock (in USD per share) \| $ / shares		$ 19.00
Sale of stock, consideration received \| $		$ 131,500,000
Common stock, par value (in USD per share) \| $ / shares	$ 0.0001	$ 0.0001			$ 0.0001	$ 0.0001	$ 0.0001
Shares exchanged (in shares)				14,400
Stronghold LLC
Temporary Equity [Line Items]
Number of votes \| vote					1
Q Power LLC \| Stronghold LLC
Temporary Equity [Line Items]
Ownership interest (in percent)				69.00%	45.10%	56.10%
Q Power LLC
Temporary Equity [Line Items]
Shares exchanged (in shares)				14,400
Stronghold LLC
Temporary Equity [Line Items]
Shares exchanged in business reorganization (in shares)				14,400
Series A
Temporary Equity [Line Items]
Number of shares converted	9,792,000
Series A \| Private Placement
Temporary Equity [Line Items]
Stock issued and sold during period (in shares)				9,792,000
Sale of stock (in USD per share) \| $ / shares				$ 8.68
Sale of stock, consideration received \| $				$ 85,000,000
Payments of fees \| $				6,300,000
Payments of debt issuance costs \| $				$ 631,897
Series B
Temporary Equity [Line Items]
Number of shares converted	1,816,994
Series B \| Private Placement
Temporary Equity [Line Items]
Stock issued and sold during period (in shares)			1,817,035
Sale of stock, consideration received \| $			$ 20,000,305
Payments of fees \| $			1,600,000
Payments of debt issuance costs \| $			$ 148,575
Common Class A
Temporary Equity [Line Items]
Conversion ratio	1
Common Stock - Class V \| Q Power LLC \| Stronghold LLC
Temporary Equity [Line Items]
Shares distributed in business reorganization (in shares)				27,072,000

NON-CONTROLLING INTERESTS (Tables)

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Abstract]

The following summarizes the redeemable common stock adjustments pertaining to the noncontrolling interest from April 1, 2021, through December 31, 2022:


	Class V Common Stock Outstanding	Fair Value Price		Temporary Equity Adjustments
Balance - April 1, 2021 (1)				$	(2,877,584)
Net losses for the three months ended June 30, 2021				(2,235,219)
Maximum redemption right valuation (2)	27,057,600	$	6.39	172,774,052
Balance - June 30, 2021				$	167,661,249
Net losses for the three months ended September 30, 2021				(4,328,460)
Adjustment of mezzanine equity to redemption amount (3)	27,057,600	$	9.33	79,669,600
Balance - September 30, 2021				$	243,002,389
Net losses for the three months ended December 31, 2021				(8,594,196)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	11.99	66,644,424
Balance - December 31, 2021				$	301,052,617
Net losses for the three months ended March 31, 2022				(18,125,837)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	7.72	(110,222,560)
Balance - March 31, 2022				$	172,704,220
Net losses for the three months ended June 30, 2022				(22,576,255)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	1.75	(102,888,062)
Balance - June 30, 2022				$	47,239,903
Net losses for the three months ended September 30, 2022				(42,203,141)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	1.09	24,396,766
Balance - September 30, 2022				$	29,433,528
Net losses for the three months ended December 31, 2022				(18,865,180)
Adjustment of temporary equity to redemption amount (3)	26,057,600	$	0.45	1,186,239
Balance - December 31, 2022				$	11,754,587

(1) As of the date of reorganization - refer to Note 1 – Business Combinations.
(2) Temporary equity adjustment based on Class V common stock outstanding at issuance price as of April 1, 2021.
(3) Temporary equity adjustment based on Class V common stock outstanding at fair value price at each quarter end, using a 10-day variable weighted average price ("VWAP") of trading dates including the closing date.

Schedule of Stockholders Equity

The following summarizes the permanent equity adjustments pertaining to the noncontrolling interest from November 2, 2021 (date of issuance), through December 31, 2022:


	Permanent Equity Adjustments
Balance - November 2, 2021 (1)	$	38,315,520
Net loss	(645,359)
Balance - December 31, 2021	$	37,670,161
Net loss	(4,140,324)
Redemption of Series A convertible preferred shares	(33,529,837)
Balance - December 31, 2022	$	—

(1) As of November 2, 2021, the date of issuance, 1,152,000 of Series A Preferred units outstanding at $33.26 per public trading share price (Nasdaq closing price).

FINANCED INSURANCE PREMIUMS

12 Months Ended

Dec. 31, 2022

DEBT

NOTE 6 – DEBT

Debt consisted of the following as of December 31, 2022, and December 31, 2021:


	December 31, 2022			December 31, 2021
$66,076 loan, with interest at 5.55% due July 2021	$	—		$	3,054
$75,000 loan, with interest at 12.67% due April 2021.	—			7,312
$499,520 loan, with interest at 2.49% due December 2023.	124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023.	121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022.	—			103,857
$517,465 loan, with interest at 4.78% due October 2024.	339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025.	513,334			—
$431,825 loan, with interest at 7.60% due April 2024.	121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023.	—		[A]	28,149,998
$25,000,000 loan, with interest at 10.00%, due March 2024.	—		[B]	—
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025.	56,114,249		[C]	—
$10,641,362 loan, with interest at 10.00% due June 2023.	—		[D]	7,546,542
$14,077,800 loan, with interest at 10.00% due June 2023.	—		[E]	9,982,551
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[F]	9,891,200
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[G]	7,319,488
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[H]	—
$33,750,000 Convertible Note, with interest at 10.00% due May 2024.	16,812,500		[I]	—
$92,381 loan, with interest at 1.49% due April 2026.	79,249			—
$64,136 loan, with interest at 11.85% due May 2024.	39,056			—
$196,909 loan, with interest at 6.49% due May 2024.	184,895			—
Total outstanding borrowings	$	74,449,664		$	64,178,492

Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt, net of discounts and issuance fees	$	57,027,118		$	18,378,841

[D] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[E] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[F] Second NYDIG Financing Agreement (as defined below) with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[G] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[H] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[I] Convertible Note with a term of 24 months.

Extinguishment of NYDIG Financing Agreements

with NYDIG, formerly known as Arctos Credit, LLC, and The Provident Bank, a Massachusetts savings bank (“BankProv” and, together with NYDIG, “Purchasers” and each, a “Purchaser”).

WhiteHawk Refinancing Agreement

Convertible Note Exchange

Future scheduled maturities on the outstanding borrowings for each of the next five years as of December 31, 2022, are as follows:


Years ending December 31:
2023	$	17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	—
	$	74,449,664

NOTE 10 – PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

On June 8, 2021, the Company repaid the Economic Injury Disaster Loan (“EIDL”), received on March 31, 2020, in the amount of $150,000.

NOTE 28 – FINANCED INSURANCE PREMIUMS

TAX RECEIVABLE AGREEMENT	12 Months Ended
TAX RECEIVABLE AGREEMENT	Dec. 31, 2022
Income Tax Disclosure [Abstract]
TAX RECEIVABLE AGREEMENT	NOTE 20 – TAX RECEIVABLE AGREEMENT The Company entered into a Tax Receivable Agreement (“TRA”) with Q Power and an agent named by Q Power on April 1, 2021, (to which an additional holder was subsequently joined as an additional “TRA Holder” on March 14, 2023), pursuant to which the Company will pay the TRA Holders 85% of the realized (or, in certain circumstances, deemed realized) cash tax savings attributable to the tax basis step-ups arising from taxable exchanges of units and certain other items. For the year ended December 31, 2022, a taxable exchange of Stronghold LLC units, together with a corresponding number of Class V common shares by Q Power for Class A common stock of the Company, resulted in adjustments to the tax basis of Stronghold LLC’s assets. Such step-ups in tax basis, which were allocated to Stronghold Inc., are expected to increase Stronghold Inc.’s tax depreciation, amortization and/or other cost recovery deductions, which may reduce the amount of tax Stronghold Inc. would otherwise be required to pay in the future. No cash tax savings have been realized by Stronghold Inc. with respect to these basis adjustments due to the Company’s estimated taxable losses, and the realization of cash tax savings in the future is dependent, in part, on estimates of sufficient future taxable income. As such, a deferred income tax asset has not been recorded due to maintaining a valuation allowance on the Company’s deferred tax assets, and no liability has been recorded with respect to the TRA in light of the applicable criteria for accrual. Estimating the amount and timing of Stronghold Inc.’s realization of income tax benefits subject to the TRA is imprecise and unknown at this time and will vary based on a number of factors, including when future redemptions actually occur. Accordingly, the Company has not recorded any deferred income tax asset or liability associated with the TRA.

INVENTORY (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Waste coal	$ 4,147,369	$ 3,238,383
Fuel oil	143,592	94,913
Limestone	180,696	38,958
Inventory	$ 4,471,657	$ 3,372,254

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)
Accounting Policies [Abstract]
Restricted cash	$ 900,000
Continous bond	400,000
Letter of credit	$ 500,000

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) - Customized Energy Solutions, Ltd	Jul. 27, 2022 USD ($)
Principal Transaction Revenue [Line Items]
Contract with supplier, termination notice before automatic renewal, period	60 days
Contract with supplier, term	2 years
Minimum
Principal Transaction Revenue [Line Items]
Payments to suppliers, monthly amount	$ 500
Maximum
Principal Transaction Revenue [Line Items]
Payments to suppliers, monthly amount	$ 5,500

WARRANTS - Outstanding Warrants (Details) - shares		3 Months Ended	12 Months Ended
WARRANTS - Outstanding Warrants (Details) - shares	Nov. 15, 2022	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Class Of Warrant Or Right, Outstanding [Roll Forward]
Outstanding as of beginning of period (in shares)			297,795	0
Issued (in shares)	3,243,416		21,393,561	297,795
Exercised (in shares)		(6,424,324)	(5,816,250)	0
Outstanding as of end of period (in shares)		15,875,106	15,875,106	297,795

CONSOLIDATED STATEMENTS OF PARTNERS’ DEFICIT AND STOCKHOLDERS’ DEFICIT - USD ($)	Total	Series A	Series B	Common Class A	Limited Partners	General Partners	Noncontrolling Redeemable Preferred	Noncontrolling Redeemable Preferred Series A	Common A	Common A Series A	Common A Series B	Common A Common Class A	Accumulated Deficit	Additional Paid-in Capital	Additional Paid-in Capital Series A	Additional Paid-in Capital Series B	Additional Paid-in Capital Common Class A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)							0		0
Beginning balance at Dec. 31, 2020					$ (1,336,784)	$ (2,710,323)
Increase (Decrease) in Partners' Capital [Roll Forward]
Net loss attributable to legacy partners	$ (238,948)				(71,687)	(167,261)
Ending balance at Mar. 31, 2021	(4,286,055)				(1,408,471)	(2,877,584)
Beginning balance at Dec. 31, 2020	(4,047,107)						$ 0		$ 0				$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to parent	(238,948)				(71,687)	(167,261)
Beginning balance at Dec. 31, 2020					(1,336,784)	(2,710,323)
Ending balance at Dec. 31, 2021					0	0
Beginning balance at Dec. 31, 2020	(4,047,107)						$ 0		$ 0				0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net losses attributable to noncontrolling interest	(15,803,234)
Ending balance (in shares) at Dec. 31, 2021							1,152,000		20,016,067
Ending balance at Dec. 31, 2021	(59,164,778)						$ 37,670,161		$ 2,002				(338,709,688)	241,872,747
Beginning balance at Mar. 31, 2021	(4,286,055)				(1,408,471)	(2,877,584)
Increase (Decrease) in Partners' Capital [Roll Forward]
Net loss attributable to legacy partners	(11,213,147)												(11,213,147)
Contributions	2,877,584				1,408,471	2,877,584
Ending balance at Dec. 31, 2021					0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Aspen Scrubgrass Participant, LLC ("Olympus") contribution	0												(1,408,471)
Buyout of Aspen Interest	(2,000,058)												(7,000,000)	4,999,942
Converted to Common Class A (in shares)									576,000
Converted to Class A common shares	58								$ 58
Exchange of common units for Class A common shares/Redemption of Series A convertible preferred shares (in shares)									14,400
Exchange of common units for Class A common shares/Redemption of Series A convertible preferred shares	1								$ 1
Common stock issued as part of debt financing (in shares)									126,273
Stock-based compensation	1,389,899								$ 12					1,389,887
Exercised warrants	1,999,396													1,999,396
Conversion of convertible redeemable preferred units to common stock (in shares)										9,792,000	1,816,994
Conversion of convertible redeemable preferred units to common stock		$ 77,824,369	$ 18,182,921							$ 979	$ 182				$ 77,823,388	$ 18,182,739
Maximum redemption right valuation [Common V Units]	(303,930,195)												(303,930,195)
Issuance of stock (in shares)								1,152,000				7,690,400
Issuance of stock		$ 38,315,520		$ 131,538,558				$ 38,315,520				$ 769					$ 131,537,789
Net loss attributable to parent	(11,213,147)												(11,213,147)
Net losses attributable to noncontrolling interest	(15,803,234)						$ (645,359)						(15,157,875)
Warrants issued and outstanding	1,924,281													1,924,281
Stock-based compensation	4,015,324													4,015,324
Ending balance (in shares) at Dec. 31, 2021							1,152,000		20,016,067
Ending balance at Dec. 31, 2021	(59,164,778)						$ 37,670,161		$ 2,002				(338,709,688)	241,872,747
Ending balance at Dec. 31, 2021					$ 0	$ 0
Beginning balance at Nov. 02, 2021							38,315,520
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net losses attributable to noncontrolling interest							$ (645,359)
Ending balance (in shares) at Dec. 31, 2021							1,152,000		20,016,067
Ending balance at Dec. 31, 2021	(59,164,778)						$ 37,670,161		$ 2,002				(338,709,688)	241,872,747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)							1,152,000		20,016,067
Net loss attributable to legacy partners	(89,261,230)												(89,261,230)
Converted to Common Class A (in shares)									6,424,324
Converted to Class A common shares	0								$ 642					(642)
Exchange of common units for Class A common shares/Redemption of Series A convertible preferred shares (in shares)							(1,152,000)		1,152,000
Exchange of common units for Class A common shares/Redemption of Series A convertible preferred shares	0						$ (33,529,837)		$ 115					33,529,722
Common stock issued as part of debt financing (in shares)									1,000,000
Stock-based compensation	0								$ 100					(100)
Net loss attributable to parent	(89,261,230)												(89,261,230)
Net losses attributable to noncontrolling interest	(105,910,737)						$ (4,140,324)						(101,770,413)
Maximum redemption right valuation [Common V Units]	289,298,029												289,298,029
Vesting of restricted stock units (in shares)									241,067
Vesting of restricted stock units	0								$ 24					(24)
Issuance of common stock - September PIPE (in shares)									2,876,759
Issuance of common stock - September PIPE	2,241,310								$ 288					2,241,022
Warrants issued and outstanding	26,894,078													26,894,078
McClymonds arbitration award - paid by Q Power	5,038,122													5,038,122
Stock-based compensation	13,890,350													13,890,350
Ending balance (in shares) at Dec. 31, 2022							0		31,710,217
Ending balance at Dec. 31, 2022	$ 83,025,144						$ 0		$ 3,171				$ (240,443,302)	$ 323,465,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)							0		31,710,217

INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at 21% federal income tax rate	$ (40,986,113)	$ (5,723,619)
Income attributable to the pre-incorporation period	0	50,179
Income attributable to nontaxable noncontrolling interest	22,241,255	3,318,679
State income tax expense (benefit), net of federal tax effect	(3,495,720)	(752,955)
Change in valuation allowance	20,934,443	2,756,486
Change in state income tax rate	1,430,670	0
Other, net	(124,535)	351,230
Total income tax provision (benefit)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Schedule of Accrued Liabilities

ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Other accrued liabilities consisted of the following as of December 31, 2022, and 2021:


	December 31, 2022		December 31, 2021
Accrued legal and professional fees	$	1,439,544	$	1,457,727


Accrued interest	1,343,085		79,267
Accrued sales and use tax	5,150,659		2,609,664

Other	959,960		907,299

Total accrued liabilities	$	8,893,248	$	5,053,957

RELATED-PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

Related Party Transactions

Fuel purchases under these agreements for the years ended December 31, 2022, and December 31, 2021, were as follows:


	December 31, 2022		December 31, 2021
Coal Purchases:
Northampton Fuel Supply Company, Inc.	$	3,121,423	$	163,412
Coal Valley Sales, LLC	733,458		934,916
Total	$	3,854,881	$	1,098,328

Amounts due to related parties as of December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021
Due to related parties:
Coal Valley Properties, LLC	$	134,452	$	134,452
Q Power LLC	500,000		500,000
Coal Valley Sales, LLC	—		202,334
Panther Creek Energy Services LLC	10,687		94,434
Panther Creek Fuel Services LLC	53,482		47,967
Northampton Generating Fuel Supply Company, Inc.	594,039		321,738
Olympus Power LLC and other subsidiaries	78,302		129,735
Scrubgrass Energy Services LLC	4,087		—
Scrubgrass Fuel Services LLC	—		—
Totals	$	1,375,049	$	1,430,660

NONCONTROLLING INTERESTS - Redeemable Common Stock Adjustments (Details) - USD ($)	3 Months Ended							9 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Increase (Decrease) in Partners' Capital [Roll Forward]
Redeemable common stock, beginning balance	$ 29,433,528	$ 47,239,903	$ 172,704,220	$ 301,052,617	$ 243,002,389	$ 167,661,249	$ (2,877,584)	$ (2,877,584)	$ 301,052,617
Net losses attributable to noncontrolling interest								(15,803,234)	(105,910,737)	$ (15,803,234)
Maximum redemption right valuation and adjustments	1,186,239	24,396,766	(102,888,062)	(110,222,560)	66,644,424	79,669,600	172,774,052
Redeemable common stock, ending balance	11,754,587	29,433,528	47,239,903	172,704,220	301,052,617	243,002,389	167,661,249	301,052,617	11,754,587	$ 301,052,617
Accumulated Deficit
Increase (Decrease) in Partners' Capital [Roll Forward]
Net losses attributable to noncontrolling interest	$ (18,865,180)	$ (42,203,141)	$ (22,576,255)	$ (18,125,837)	$ (8,594,196)	$ (4,328,460)	$ (2,235,219)	$ (15,157,875)	$ (101,770,413)
Common Stock - Class V
Noncontrolling Interest [Line Items]
Class V Common Stock Outstanding (in shares)	26,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	26,057,600	27,057,600
Fair Valuation Price (in USD per share)	$ 0.45	$ 1.09	$ 1.75	$ 7.72	$ 11.99	$ 9.33	$ 6.39	$ 11.99	$ 0.45	$ 11.99
Increase (Decrease) in Partners' Capital [Roll Forward]
Redeemable common stock, beginning balance				$ 301,052,617					$ 301,052,617
Maximum redemption right valuation and adjustments									(187,527,617)
Redeemable common stock, ending balance	$ 11,754,587				$ 301,052,617			$ 301,052,617	$ 11,754,587	$ 301,052,617

Carrying amount, attributable to parent, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

STOCK-BASED COMPENSATION

NOTE 12 – STOCK-BASED COMPENSATION

On October 19, 2021, the board of directors of the Company (the "Board") and the stockholders of the Company approved a new long-term incentive plan (the “New LTIP”) for employees, consultants and directors. The New LTIP provides for the grant of options (including incentive stock options and non-qualified stock options), stock appreciation rights, restricted stock units ("RSUs"), dividend equivalents, other stock-based awards, and substitute awards intended to align the interests of service providers, including our named executive officers, with those of our stockholders. Pursuant to the New LTIP, the remaining shares of Class A common stock under the LTIP that was effective April 28, 2021, that were reserved and available for delivery, were assumed and reserved for issuance under the New LTIP. In addition, the New LTIP raised the aggregate number of shares of common stock that may be issued or used for reference purposes or with respect to which awards may be granted under the plan to not exceed 4,752,000 shares. As of October 19, 2021, the Company now grants all equity-based awards under the New LTIP.

The Board is duly authorized to administer the New LTIP. The Company accounts for share-based payment awards exchanged for services at the estimated grant date fair value of the award.

Stock options issued under the Company’s New LTIP are granted with an exercise price no less than the market price of the Company’s stock at the date of grant and expire up to ten years from the date of the grant. The Company accounts for share-based payment awards exchanged for services at the estimated grant date fair value of the award. Stock options issued under the LTIP were granted with an exercise price equal to the fair market value of the Company’s stock, as determined with reference to third-party valuations as of the date of option grants, and expire up to ten years from the date of grant. Options granted under the New LTIP and the LTIP vest over various terms.

RSUs are subject to restrictions on transferability, risk of forfeiture and other restrictions imposed by the Compensation Committee of the Board (the "Committee"). Settlement of vested RSUs will occur upon vesting or upon expiration of the deferral period specified for such RSUs by the Committee (or, if permitted by the Committee, as elected by the participant). RSUs may be settled in cash or a number of shares of stock (or a combination of the two), as determined by the Committee at the date of grant or thereafter.

Stock-Based Compensation

Stock-based compensation expense, including share-based expenses associated with non-employee directors, was $13,890,350 and $4,015,324 for the years ended December 31, 2022, and 2021, respectively, and is included in general and administrative expense in the consolidated statements of operations. There is no tax benefit related to stock compensation expense due to the Company having a full valuation allowance recorded against its deferred income tax assets as of December 31, 2022.

The Company recognized total stock-based compensation expense for the years ended December 31, 2022, and 2021, from the following categories:


	December 31, 2022		December 31, 2021
Restricted stock awards under the Plan	3,592,641		172,800
Stock option awards under the Plan	10,297,709		3,842,524
Total stock-based compensation	$	13,890,350	$	4,015,324

Stock Options

The following are the weighted-average assumptions used in calculating the fair value of the total stock options granted during 2022 using the Black-Scholes method.


	December 31, 2022			December 31, 2021
Weighted-average fair value of options granted	$	10.21		$	7.64
Expected volatility	125.85		%	128.14		%
Expected life (in years)	5.81			5.77
Risk-free interest rate	1.69		%	0.93		%
Expected dividend yield	0		%	0		%

Expected Volatility – The Company estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies, as the Company does not currently have sufficient history for the volatility of its own stock.

Expected Term – The expected term of options represents the period that the Company’s stock-based awards are expected to be outstanding based on the simplified method, which is the half-life from vesting to the end of the contractual term.

Risk-Free Interest Rate – The Company bases the risk-free interest rate on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Expected Dividend Yield – The Company has never declared or paid any cash dividends on its common shares and does not plan to pay cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in its valuation models.

The Company elected to account for forfeited awards as they occur, as permitted by ASU 2016-09.

As of December 31, 2022, the total future compensation expense related to unvested options not yet recognized in the consolidated statements of operations was approximately $13,466,789, and the weighted-average period over which these awards are expected to be recognized is approximately 1.61 years.

The following table summarizes the Company's stock option activity for the years ended December 31, 2022, and 2021.


	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2021	—	$	—	—	$	—
Granted	3,379,083	8.91		9.61	—
Exercised	—	—		—	—
Cancelled/forfeited	—	—		—	—
Outstanding at December 31, 2021	3,379,083	$	8.91	9.61	$	30,906,003
Granted	205,964	10.61		9.11	—
Exercised	—	—		—	—
Cancelled/forfeited	(35,000)	18.06		8.68	—
Outstanding at December 31, 2022	3,550,047	9.03		9.00	—
Shares vested and expected to vest	3,550,047	$	9.03	8.62	$	—
Exercisable as of December 31, 2022	1,721,821	$	9.06	8.60	$	—

RSUs

The following table summarizes the Company's RSU activity for the years ended December 31, 2022, and 2021.


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021	—	$	—
Vested	—	—
Granted	60,737	11.10
Forfeited	—	—
Unvested at December 31, 2021	60,737	$	11.10
Vested	(319,959)	5.36
Granted	1,687,111	3.76
Forfeited	(8,358)	3.88
Unvested at December 31, 2022	1,419,531	$	4.35

The value of RSUs are measured based on their fair value on the date of grant and amortized over their respective vesting periods. As of December 31, 2022, total future compensation expense related to unvested RSUs not yet recognized in the consolidated statements of operations was approximately $3,881,290, and the weighted-average vesting period over which these awards are expected to be recognized is approximately 1.79 years.

Non-employee Directors Compensation Policy

On January 10, 2022, the Committee formally adopted the previously approved Non-Employee Director Compensation Policy ("Policy"), effective October 19, 2021. The Policy included the following:

•An initial equity grant of 10,000 stock options;

•An annual retainer equal to $100,000, to be paid in fully-vested shares of the company's Class A common stock on a quarterly basis in arrears;

•Once a non-employee director obtains exposures to the Company's Class A common stock of $500,000 or greater, a director may choose to receive the annual retainer in USD or any other currency (including Bitcoin); and

•Reimbursement for travel expenses and other reasonable out-of-pocket expenses.

The Company paid compensation to the non-employee directors of $275,843 during 2022, of which $200,843 is included within general and administrative expense in the consolidated statement of operations for the year ended December 31,

2022, after reversing an accrual of $75,000 as of December 31, 2021. By comparison, no compensation was paid to the non-employee directors during 2021.

PRIVATE PLACEMENTS

12 Months Ended

Dec. 31, 2022

PRIVATE PLACEMENTS

NOTE 14 – REDEEMABLE COMMON STOCK

Private Placements: Redeemable Common Stock – Series A and B

On April 1, 2021, the Company entered into a Series A Preferred Stock Purchase Agreement pursuant to which the Company issued and sold 9,792,000 shares of Series A Preferred Stock in the Series A Private Placement, at a price of $8.68 per share to various accredited individuals for aggregate consideration of approximately $85.0 million. In connection with the Series A Private Placement, the Company incurred approximately $6.3 million in fees and $631,897 as debt issuance costs for warrants issued as part of the Series A Private Placement.

Further, pursuant to the Series A Private Placement, the Company, the investors in the Series A Private Placement and key holders entered into a Right of First Refusal Agreement ("ROFR Agreement"). Under the ROFR Agreement, the key holders agreed to grant a right of first refusal to Stronghold Inc. to purchase all or any portion of capital stock of Stronghold Inc. held by a key holder or issued to a key holder after the date of the ROFR Agreement, not including any shares of Series A Preferred Stock or common stock issued or issuable upon conversion of the Series A Preferred Stock. The key holders also granted a right of refusal to the investors in the Series A Private Placement to purchase all or any eligible capital stock not purchased by the Company pursuant to its right of first refusal.

The ROFR Agreement also provided certain co-sale rights to investors in the Series A Private Placement to participate in any sale or similar transfer of any shares of common stock owned by a key holder or issued to a key holder after the Series A Private Placement, on the terms and conditions specified in a written notice from a key holder. The investors, however, are not obligated to participate in such sales or similar transfers. The co-sale and rights of first refusal under the ROFR Agreement terminated when the Preferred Stock converted into shares of Class A common stock.

On May 14, 2021, the Company completed the Series B Private Placement. The terms of the Series B Preferred Stock were substantially similar to the Series A Preferred Stock, except for differences in the stated value of such shares in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or certain deemed liquidation events. In connection with the Series B Private Placement, the Company sold 1,817,035 shares of its Series B Preferred Stock for an aggregate purchase price of approximately $20.0 million. In connection with the Series B Private Placement, the Company incurred approximately $1.6 million in fees and expenses and $148,575 as debt issuance costs for warrants issued as part of the Series B Private Placement.

The Company entered into registration rights agreements with the investors in the Private Placements concurrently with the closing of each Private Placement, with certain filing deadlines as defined in the agreements.

On October 22, 2021 (the closing date of the IPO), the net proceeds from the 9,792,000 shares of the Series A Preferred Stock and the 1,816,994 shares of the Series B Preferred Stock were converted to shares of Class A common stock on a one-for-one share basis at a par value of $0.0001 per share. As of December 31, 2021, these shares were no longer reported as redeemable common stock.

The following is a summary of the Series A and Series B valuations and conversions to common equity:


	Series A		Series B
Proceeds	$	85,000,000	$	20,000,305
Transaction fees:
B. Riley Securities	(5,100,000)		(1,200,000)
Legal and filing fees	(1,226,990)		(408,997)
Debt issuance costs pertaining to stock registration warrants - refer to Note 13	(631,897)		(148,575)
Total net redeemable common stock	$	78,041,113	$	18,242,733
Conversion to common Class A shares	$	(78,041,113)	$	(18,242,733)
Remaining in net redeemable common stock	$	—	$	—

Common Stock – Class V

In connection with the Reorganization on April 1, 2021, Stronghold LLC immediately thereafter distributed the 27,072,000 shares of Class V common stock to Q Power. In addition, effective as of April 1, 2021, Stronghold Inc. acquired 14,400 Stronghold LLC units held by Q Power (along with an equal number of shares of Class V common stock) in exchange for 14,400 newly-issued shares of Class A common stock.

Class V common stock represented 45.1% and 56.1% ownership of Stronghold LLC, as of December 31, 2022, and December 31, 2021, respectively, granting the owners of Q Power economic rights and, as a holder, one vote on all matters to be voted on by our stockholders generally, and a redemption right into Class A shares. Refer to Note 15 – Noncontrolling Interests for more details.

The Company classifies its Class V common stock as redeemable common stock in the accompanying consolidated balance sheets as, pursuant to the Stronghold LLC Agreement, the redemption rights of each unit held by Q Power for either shares of Class A common stock or an equivalent amount of cash is not solely within the Company’s control. This is due to the holders of the Class V common stock collectively owning a majority of the voting stock of the Company, which allows the holders of Class V common stock to elect the members of the Board, including those directors who determine whether to make a cash payment upon a Stronghold LLC unit holder’s exercise of its redemption rights. Redeemable common stock is recorded at the greater of the book value or redemption amount from the date of the issuance, April 1, 2021, and the reporting date as of December 31, 2022.

The Company recorded redeemable common stock as presented in the table below.



	Common Class V
	Shares	Amount
Balance - December 31, 2021	27,057,600	$	301,052,617
Net loss attributable to noncontrolling interest	—	(101,770,413)
Maximum redemption right valuation	—	(187,527,617)
Redemption of Class V shares	(1,000,000)	—
Balance - December 31, 2022	26,057,600	$	11,754,587

NOTE 29 – PRIVATE PLACEMENTS

May 2022 Private Placement

On May 15, 2022, the Company entered into a note and warrant purchase agreement (the “Purchase Agreement”), by and among the Company and the purchasers thereto (collectively, the “Purchasers”), whereby the Company agreed to issue and sell to Purchasers, and Purchasers agreed to purchase from the Company, (i) $33,750,000 aggregate principal amount of 10.00% unsecured convertible promissory notes (the “May 2022 Notes”) and (ii) warrants (the “May 2022 Warrants”) representing the right to purchase up to 6,318,000 shares of Class A common stock, of the Company with an exercise price per share equal to $2.50, on the terms and subject to the conditions set forth in the Purchase Agreement (collectively, the “2022 Private Placement”). The Purchase Agreement contained representations and warranties by the Company and the Purchasers that are customary for transactions of this type. The May 2022 Notes and the May 2022 Warrants were sold for aggregate consideration of $27.0 million.

In connection with the 2022 Private Placement, the Company undertook to negotiate with the Purchasers and to file a certificate of designation (“Series C Preferred Certificate of Designation”) with the State of Delaware, following the closing of the 2022 Private Placement, for the terms of a new series of preferred stock (the “Series C Preferred Stock”).

In connection with the 2022 Private Placement, the May 2022 Warrants were issued pursuant to the Warrant Agreement. The May 2022 Warrants are subject to mandatory cashless exercise provisions and have certain anti-dilution provisions. The May 2022 Warrants are exercisable for a five-year period from the closing.

The issuance of the May 2022 Notes was within the scope of ASC 480-10 and, therefore, was initially measured at fair value (consistent with ASC 480-10-30-7). Additionally, under the guidance provided by ASC 815-40-15-7, the Company determined that the May 2022 Warrants were indexed to the Company's stock. As a result, the May 2022 Warrants were initially recorded at their fair value within equity. The May 2022 Notes were valued using the gross yield method under the income approach. As of the issuance date of May 15, 2022, a calibration analysis was performed by back solving the implied yield associated with the May 2022 Notes, such that the total value of the May 2022 Notes and the May 2022 Warrants equaled the purchase amount. The calibrated yield was then rolled forward for changes to the risk-free rate and option-adjusted spreads to the August 16, 2022, valuation date to value the May 2022 Notes.

On August 16, 2022, the Company entered into the Purchase Agreement Amendment, by and among the Company and the Purchasers, whereby the Company agreed to amend the Purchase Agreement such that $11.25 million of the outstanding principal was exchanged for the Purchaser's execution of an amended and restated warrant agreement pursuant to which the strike price of the 6,318,000 of May 2022 Warrants was reduced from $2.50 to $0.01. As a result of the reduction of the warrant strike price, the Company recorded a loss on extinguishment of $13,380,511. After giving effect to the principal

reduction and amended and restated warrants, the Company was to continue to make subsequent monthly, payments to the Purchasers on the fifteenth (15th) day of each of November 2022, December 2022, January 2023, and February 2023. The Company was able to elect to pay each such payment (A) in cash or (B) in shares of Common Stock, in each case, at a twenty percent (20%) discount to the average of the daily VWAPs for each of the twenty (20) consecutive trading days preceding the payment date.

As described in Note 6 – Debt, on December 30, 2022, the Company entered into an exchange agreement with the Holders of the Company’s Notes, providing for the exchange of the Notes for shares of the Company’s newly-created Series C Preferred Stock. On February 20, 2023, the Exchange Transaction was consummated, and the Notes were paid in full and terminated in exchange for the issuances of the shares of Series C Preferred Stock.

September 2022 Private Placement

On September 13, 2022, the Company entered into Securities Purchase Agreements (the "Purchase Agreements") with Armistice Capital Master Fund Ltd. (“Armistice”) and Greg Beard, the Company's Chairman and Chief Executive Officer (together with Armistice, the “September PIPE Purchasers”), for the purchase and sale of 2,274,350 and 602,409 shares, respectively, of Class A common stock, par value $0.0001 per share at a purchase price of $1.60 and $1.66, respectively, and warrants to purchase an aggregate of 5,602,409 shares of Class A common stock, at an initial exercise price of $1.75 per share (subject to certain adjustments). Subject to certain ownership limitations, such warrants were exercisable upon issuance and will be exercisable for five and a half years commencing on the date of issuance. Armistice also purchased the pre-funded warrants for 2,725,650 shares of Class A common stock (the "Pre-Funded Warrants") at a purchase price of $1.60 per Pre-Funded Warrant. The Pre-Funded Warrants have an exercise price of $0.0001 per warrant share. The transaction closed on September 19, 2022. The gross proceeds from the sale of such securities, before deducting offering expenses, was approximately $9.0 million.

The warrant liabilities are subject to remeasurement at each balance sheet date, and any change in fair value is recognized as "changes in fair value of warrant liabilities" in the consolidated statements of operations. The fair value of the warrant liabilities was estimated as of December 31, 2022, using a Black-Scholes model with significant inputs as follows:


	December 31, 2022
Expected volatility	130.9		%
Expected life (in years)	5.5
Risk-free interest rate	4.0		%
Expected dividend yield	0		%
Fair value	$	2,131,959

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Components of Provision for Income Taxes

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

The components of the provision for income taxes for the years ended December 31, 2022, and 2021, were as follows:


	Year ended December 31,
	2022		2021
Current income tax provision (benefit):
Federal	$	—	$	—
State	—		—
Total current income tax provision (benefit)	$	—	$	—
Deferred income tax provision (benefit):
Federal	$	—	$	—
State	—		—
Total deferred income tax provision (benefit)	$	—	$	—
Total income tax provision (benefit)	$	—	$	—

Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal income tax amount to the recorded income tax provision (benefit) expense is detailed in the following table.


	Year ended December 31,
	2022		2021
Income tax expense (benefit) at 21% federal income tax rate	$	(40,986,113)	$	(5,723,619)
Income attributable to the pre-incorporation period	—		50,179
Income attributable to nontaxable noncontrolling interest	22,241,255		3,318,679
State income tax expense (benefit), net of federal tax effect	(3,495,720)		(752,955)
Change in valuation allowance	20,934,443		2,756,486
Change in state income tax rate	1,430,670		—
Other, net	(124,535)		351,230
Total income tax provision (benefit)	$	—	$	—

Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2022, and 2021, were as follows:


	Year ended December 31,
	2022		2021
Net operating loss and other carryforwards	$	25,852,100	$	6,243,820
Investment in Stronghold LLC	15,068,075		3,999,780
Total deferred income tax assets	$	40,920,175	$	10,243,600
Valuation allowance	(40,920,175)		(10,243,600)
Net deferred income tax assets	$	—	$	—
Net deferred income tax assets (liabilities)	$	—	$	—

HOSTING SERVICES AGREEMENT (Details)						1 Months Ended	12 Months Ended
HOSTING SERVICES AGREEMENT (Details)	Nov. 30, 2022 USD ($)	Oct. 31, 2022 USD ($)	Oct. 03, 2022 USD ($)	Sep. 30, 2022 USD ($) miner manufactured_pod slot strongbox mining_slot	Mar. 28, 2022 miner $ / terahash	Oct. 31, 2021 $ / kWh	Dec. 31, 2022 USD ($) miner	Aug. 10, 2022 miner	Apr. 14, 2021 miner
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of miners \| miner							43,580
Price deducted for power used (in USD per kilowatt-hours) \| $ / kWh						0.027
Percentage of revenue for company						65.00%
Percentage of revenue for counterparty						35.00%
Settlement agreement, term				2 years
Number of manufactured pods \| manufactured_pod				24
Number of miners powered by each manufactured pod \| miner				550
Number of available slots in manufactured pods \| slot				13,200
Number of strongboxes \| strongbox				4
Number of miners powered by each strongbox \| miner				264
Number of mining slots in strongboxes \| mining_slot				1,056
Strongboxes, annual cost				$ 1,000
Percentage of profits received by leased manufactured pods and strongboxes				100.00%
Maximum expenditures available to upgrade leased manufactured pods				$ 1,500,000
Aggregate cost of settlement agreement				4,500,000
Payments to settlement agreement	$ 1,000,000	$ 1,000,000	$ 2,500,000
Reduction of amount payable to counterparty in agreement				2,600,000
Aggregate cost of settlement agreement, net of reduction of amount payable							$ 1,900,000
Minimum
Unrecorded Unconditional Purchase Obligation [Line Items]
Manufactured pods, purchase amount				2,000,000
Maximum
Unrecorded Unconditional Purchase Obligation [Line Items]
Manufactured pods, purchase amount				$ 6,000,000
Northern Data, MicroBT
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of miners \| miner					2,675				9,900
Miner equipment, cost per terrahash (in USD per terrahash) \| $ / terahash					37.5
Period obligation due after delivery of miner equipment					5 months
Number of miners terminated \| miner								2,675

STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted (in USD per share)	$ 10.21	$ 7.64
Expected volatility	125.85%	128.14%
Expected life (in years)	5 years 9 months 21 days	5 years 9 months 7 days
Risk-free interest rate	1.69%	0.93%
Expected dividend yield	0.00%	0.00%

SEGMENT REPORTING - Results from Operating Segments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
OPERATING REVENUES:		$ 106,033,102	$ 30,915,137
NET OPERATING LOSS:		(147,266,155)	(22,004,465)
OTHER EXPENSE		(47,905,812)	(5,250,864)
Net loss	$ (27,255,329)	(195,171,967)	(27,255,329)
DEPRECIATION AND AMORTIZATION:		(47,235,344)	(7,607,721)
INTEREST EXPENSE:		(13,911,008)	(4,622,655)
CAPITAL EXPENDITURES:		81,030,503	168,434,242
Energy Operations
Segment Reporting Information [Line Items]
OPERATING REVENUES:		46,809,665	16,123,067
NET OPERATING LOSS:		(38,992,034)	(17,237,107)
DEPRECIATION AND AMORTIZATION:		(5,189,071)	(1,305,402)
INTEREST EXPENSE:		(100,775)	(80,866)
CAPITAL EXPENDITURES:		1,735,392	48,384
Cryptocurrency Operations
Segment Reporting Information [Line Items]
OPERATING REVENUES:		59,223,437	14,792,070
NET OPERATING LOSS:		(108,274,121)	(4,767,358)
DEPRECIATION AND AMORTIZATION:		(42,046,273)	(6,302,319)
INTEREST EXPENSE:		(13,810,233)	(4,541,789)
CAPITAL EXPENDITURES:		$ 79,295,111	$ 168,385,858

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (195,171,967)	$ (27,255,329)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	47,235,344	7,607,721
Accretion of asset retirement obligation	49,576	0
Gain on extinguishment of PPP loan	(841,670)	(638,800)
Realized gain on sale of derivatives	(90,953)	0
Loss on disposal of fixed assets	2,511,262	0
Write-off of bad debts	0	244,924
Realized loss on sale of miner assets	8,012,248	0
Amortization of debt issuance costs	2,935,795	1,404,732
Stock-based compensation	13,890,350	4,015,324
Loss on debt extinguishment	40,517,707	0
Impairments on equipment deposits	17,348,742	0
Impairments on miner assets	40,683,112	0
Changes in fair value of warrant liabilities	(4,226,171)	1,143,809
Changes in fair value of forward sale derivative	(3,435,639)	116,488
Forward sale contract prepayment	970,000	0
Changes in fair value of convertible note	2,167,500	0
Other	2,217,458	0
(Increase) decrease in digital currencies:
Mining revenue	(58,763,565)	(12,494,581)
Net proceeds from sales of digital currencies	56,172,048	434,529
Impairments on digital currencies	8,339,660	1,870,274
(Increase) decrease in assets:
Accounts receivable	(8,725,271)	(1,176,239)
Prepaid insurance	6,908,215	588,808
Due from related parties	(5,671)	302,973
Inventory	(1,099,402)	(1,417,689)
Other assets	(603,963)	(2,619,911)
Increase (decrease) in liabilities:
Accounts payable	(3,093,265)	17,395,556
Due to related parties	(55,611)	268,182
Accrued liabilities	(180,943)	4,981,013
Other liabilities, including contract liabilities	(819,461)	147,835
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(27,154,535)	(5,080,381)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of Panther Creek, net of cash acquired	0	(3,914,362)
Purchase of land	0	(21,439)
Purchase of reclamation bond	0	(26,712)
Proceeds from sale of equipment deposits	13,013,974	0
Purchases of property, plant and equipment	(70,935,935)	(122,640,861)
Equipment purchase deposits - net of future commitments	(13,656,428)	(130,999,398)
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(71,578,389)	(257,602,772)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of debt	(76,119,454)	(16,283,900)
Repayments of financed insurance premiums	(4,598,592)	(2,590,788)
Proceeds from issuance of debt	152,358,118	0
Proceeds from promissory note	0	39,100,000
Proceeds from equipment financing agreement	0	41,435,466
Proceeds from equipment financed	0	517,465
Proceeds from PPP loan	0	841,670
Proceeds from private placements, net of issuance costs paid in cash	8,599,440	96,786,629
Initial Public Offering proceeds, net of fees	0	131,537,789
Repayments of EIDL loan	0	(150,000)
Repayments of related-party debt	0	(2,024,250)
Buyout of Aspen Interest	0	(2,000,000)
Forward sale contract prepayment	0	7,000,000
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	80,239,512	294,170,081
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(18,493,412)	31,486,928
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	31,790,115	303,187
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 13,296,703	$ 31,790,115

REDEEMABLE COMMON STOCK - Series A and B Valuations and Conversions to Common Equity (Details) - USD ($)	Oct. 19, 2021	May 14, 2021	Apr. 01, 2021	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Temporary Equity [Line Items]
Proceeds	$ 131,500,000
Remaining in net redeemable common stock				$ 11,754,587	$ 29,433,528	$ 47,239,903	$ 172,704,220	$ 301,052,617	$ 243,002,389	$ 167,661,249	$ (2,877,584)
Series A
Temporary Equity [Line Items]
Conversion to common Class A shares			$ (78,041,113)
Remaining in net redeemable common stock			0
Series A \| Private Placement
Temporary Equity [Line Items]
Proceeds			85,000,000
Transaction Fees			(6,300,000)
Debt issuance costs pertaining to stock registration warrants - refer to Note 13			(631,897)
Total net redeemable common stock			78,041,113
Series A \| Private Placement \| B. Riley Securities
Temporary Equity [Line Items]
Transaction Fees			(5,100,000)
Series A \| Private Placement \| Vinson & Elkins L.L.P.
Temporary Equity [Line Items]
Transaction Fees			$ (1,226,990)
Series B
Temporary Equity [Line Items]
Conversion to common Class A shares		$ (18,242,733)
Remaining in net redeemable common stock		0
Series B \| Private Placement
Temporary Equity [Line Items]
Proceeds		20,000,305
Transaction Fees		(1,600,000)
Debt issuance costs pertaining to stock registration warrants - refer to Note 13		(148,575)
Total net redeemable common stock		18,242,733
Series B \| Private Placement \| B. Riley Securities
Temporary Equity [Line Items]
Transaction Fees		(1,200,000)
Series B \| Private Placement \| Vinson & Elkins L.L.P.
Temporary Equity [Line Items]
Transaction Fees		$ (408,997)

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, aggregate liquidation value	$ 5,000,000	$ 5,000,000
Preferred stock, issued (in shares)	0	1,152,000
Preferred stock, outstanding (in shares)	0	1,152,000
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	685,440,000	685,440,000
Common stock, issued (in shares)	31,710,217	20,016,067
Common stock, outstanding (in shares)	31,710,217	20,016,067
Current portion of operating lease liabilities	$ 593,063	$ 0
Long-term operating lease liabilities	$ 1,230,001	$ 0
Common Stock - Class V
Common stock - Class V, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock - Class V, authorized (in shares)	34,560,000	34,560,000
Common stock - Class V, issued (in shares)	26,057,600	27,057,600
Common stock - Class V, outstanding (in shares)	26,057,600	27,057,600

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

In most instances, Stronghold Inc. and its subsidiaries will collectively be referred to as the “Company” if a discussion applies to all. Where it may not apply to all, then each company, described as itself, will be specifically noted.

Nature of Operations

The Company operates as a qualifying cogeneration facility (“Facility”) under the provisions of the Public Utilities Regulatory Policies Act of 1978 and sells its electricity into the PJM Interconnection Merchant Market (“PJM”) under an Professional Services Agreement (“PSA”) with Customized Energy Solutions, Ltd. (“CES”), effective July 27, 2022. Under the PSA, CES agreed to act as the exclusive provider of services for the benefit of the Company related to interfacing with PJM, including handling daily marketing, energy scheduling, telemetry, capacity management, reporting and other related services for our Panther Creek and Scrubgrass Plants. The term of the agreement is two years, and then

will extend automatically on an annual basis unless terminated by either party with 60 days written (or electronic) notice prior to term end. For these services, CES charges each plant a range of $500 to $5,500/month per service, depending on the service. The Company’s primary fuel source is waste coal which is provided by various third parties. Waste coal tax credits are earned by the Company by generating electricity utilizing coal refuse.

The Company is also a vertically-integrated digital currency mining business. The Company buys and maintains a fleet of digital or cryptocurrency mining equipment and the required infrastructure, provides power to third party digital currency miners under favorable Power Purchase Agreement (“PPA”) agreements, and sells energy as a merchant power producer and receives capacity payments from PJM for making its energy available to the grid. The digital currency mining operations are in their early stages, and digital currencies and energy pricing mining economics are volatile and subject to uncertainty. The Company’s current strategy will continue to expose it to the numerous risks and volatility associated with the digital mining and power generation sectors, including fluctuating Bitcoin-to-U.S.-Dollar prices, the costs and availability of miners, the number of market participants mining Bitcoin, the availability of other power generation facilities to expand operations, and regulatory changes.

Basis of Presentation

The consolidated financial statements have been prepared in accordance with existing accounting principles generally accepted in the United States of America (“GAAP”), under the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In addition, certain reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements in order to conform to current presentation. Additionally, since there are no differences between net income (loss) and comprehensive income (loss), all references to comprehensive income (loss) have been excluded from the consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of short-term, highly-liquid investments with original maturities of three months or less. The Company maintains its cash in non-interest bearing accounts that are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s deposits may, from time to time, exceed the $250,000 limit; however, management believes that there is no unusual risk present, as the Company places its cash with financial institutions that management considers to be of high quality.

As of December 31, 2022, cash and cash equivalents includes $900,000 of restricted cash, which represents a continuous bond in place of $400,000 to mitigate fees charged by customs brokerage companies associated with importing miners and a $500,000 letter of credit required to finance the Company's director and officer insurance policy.

Digital Currencies

Digital currencies are included in the consolidated balance sheets as current assets and are considered an intangible asset with an indefinite useful life. Digital currencies are recorded at cost less any impairment. Currently, Bitcoin is the only cryptocurrency the Company mines or holds in material amounts.

Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. However, in most cases, the Company’s qualitative assessment indicates impairment when the quoted price of the cryptocurrency subsequently falls below its carrying amount, and the Company is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. The Company performed an impairment test on its digital currencies as of December 31, 2022, and 2021,

and recognized impairments losses of $8,339,660 and $1,870,274 for the years ended December 31, 2022, and 2021, respectively.

The following table presents the activities of the digital currencies for the years ended December 31, 2022, and 2021:


	December 31, 2022		December 31, 2021

Digital currencies at beginning of year	$	10,417,865	$	228,087
Additions of digital currencies	58,763,565		12,494,581
Realized gain on sale of digital currencies	1,102,220		149,858
Impairment losses	(8,339,660)		(1,870,274)
Proceeds from sale of digital currencies	(57,274,268)		(584,387)
Collateral sold to close derivative (Note 25)	(4,559,895)		—
Digital currencies at end of year	$	109,827	$	10,417,865

As of December 31, 2021, the Company held an aggregate amount of digital currencies of $10,417,865 that was comprised of restricted and unrestricted Bitcoin. Of that amount, $2,699,644 and $7,718,221 was restricted and unrestricted, respectively.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect from balances outstanding at period end. An allowance for doubtful accounts is provided when necessary and is based upon management’s evaluation of outstanding accounts receivable at period end. The potential risk is limited to the amount recorded in the consolidated financial statements. For the years ended December 31, 2022, and 2021, outstanding customer balances totaling $0 and $244,924, respectively, were considered not collectable and written off to bad debt expense. No further allowance for doubtful accounts was considered necessary as of December 31, 2022, and 2021.

Inventory

Waste coal, fuel oil and limestone are valued at the lower of average cost or net realizable value and includes all related transportation and handling costs. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and unusable inventory and records necessary provisions to reduce such inventories to net realizable value.

Derivative Contracts

In accordance with guidance on accounting for derivative instruments and hedging activities, all derivatives should be recognized at fair value. Derivatives or any portion thereof, that are not designated as, and effective as, hedges must be adjusted to fair value through earnings. Derivative contracts are classified as either assets or liabilities on the consolidated balance sheets. Certain contracts that require physical delivery may qualify for and be designated as normal purchases and normal sales. Such contracts are accounted for on an accrual basis.

The Company uses derivative instruments to mitigate its exposure to various energy commodity market risks. The Company does not enter into any derivative contracts or similar arrangements for speculative or trading purposes. The Company will, at times, sell its forward unhedged electricity capacity to stabilize its future operating margins. As of December 31, 2022, and 2021, there were no open energy commodity derivatives outstanding.

The Company also uses derivative instruments to mitigate the risks of Bitcoin market pricing volatility. The Company entered into a variable prepaid forward sale contract that mitigated Bitcoin market pricing volatility risks between a low and high collar of Bitcoin market prices during the contract term. This contract settled in September 2022. The contract met the definition of a derivative transaction pursuant to guidance under ASC 815, Derivatives and Hedging, and was considered a compound derivative instrument which was required to be presented at fair value subject to remeasurement each reporting period. The changes in fair value were recorded as changes in fair value of forward sale derivative in the consolidated statements of operations. Refer to Note 25 – Variable Prepaid Forward Sales Contract Derivative. As of December 31, 2022, there were no derivative contracts open.

Fair Value Measurements

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities;

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data; and

Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance and repairs are charged to expenses as incurred. The Company records all assets associated with the cryptocurrency mining operations at cost. These assets are comprised of storage trailers and the related electrical components. When property, plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the consolidated statements of operations. Depreciation is recognized over the remaining estimated useful lives (“EUL”) of the related assets using the straight-line method.

The Company’s depreciation is based on its Facility being considered a single property unit. Certain components of the Facility may require replacement or overhaul several times over its estimated life. Costs associated with overhauls are recorded as an expense in the period incurred. However, in instances where a replacement of a Facility component is significant and the Company can reasonably estimate the original cost of the component being replaced, the Company will write-off the replaced component and capitalize the cost of the replacement. The component will be depreciated over the lesser of the EUL of the component or the remaining EUL of the Facility.

In conjunction with ASC 360, Property, Plant, and Equipment, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of the long-lived asset or asset group to undiscounted future cash flows expected to be generated by the long-lived asset or asset group. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the asset is used, and the effects of obsolescence, demand, competition, and other economic factors. If such an asset or asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Based on the Company’s analysis, no impairment indicators existed as of December 31, 2021; however, impairment indicators existed throughout the current year and as of December 31, 2022, that resulted in impairments on miner assets of $40,683,112 for the year ended December 31, 2022.

Bitcoin Mining Rigs

Management has assessed the basis of depreciation of the Company’s Bitcoin mining rigs used to verify digital currency transactions and generate digital currencies and believes they should be depreciated over a three-year period. The rate at which the Company generates digital assets and, therefore, consumes the economic benefits of its transaction verification servers, is influenced by a number of factors including the following:

1.The complexity of the transaction verification process which is driven by the algorithms contained within the Bitcoin open source software;

2.The general availability of appropriate computer processing capacity on a global basis (commonly referred to in the industry as hash rate capacity); and

3.Technological obsolescence reflecting rapid development in the transaction verification server industry such that more recently developed hardware is more economically efficient to run in terms of digital assets generated as a function of operating costs, primarily power costs (i.e., the speed of hardware evolution in the industry is such that

later hardware models generally have faster processing capacity combined with lower operating costs and a lower cost of purchase).

The Company operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Management has determined that three years best reflects the current expected useful life of its Bitcoin miners. This assessment takes into consideration the availability of historical data and management’s expectations regarding the direction of the industry including potential changes in technology. Management reviews this estimate annually and will revise such estimate as and when data becomes available.

To the extent that any of the assumptions underlying management’s estimate of useful life for its transaction verification servers are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets.

Asset Retirement Obligations

Asset retirement obligations, including those conditioned on future events, are recorded at fair value in the period in which they are incurred, if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset in the same period. In each subsequent period, the liability is accreted to its present value, and the capitalized cost is depreciated over the EUL of the long-lived asset. If the asset retirement obligation is settled for other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. The Company’s asset retirement obligation represents the cost the Company would incur to perform environmental clean-up or dismantle certain portions of the Facility.

Right-of-Use Assets

A right-of-use (“ROU”) asset represents the right to use an underlying asset for the term of the lease, and the corresponding liability represents an obligation to make periodic payments arising from the lease. A determination of whether an arrangement includes a lease is made at the inception of the arrangement. ROU assets and liabilities are recognized on the consolidated balance sheets, at the commencement date of the lease, in an amount equal to the present value of the lease payments over the term of the lease calculated using the interest rate implicit in the lease arrangement or, if not known, the Company's incremental borrowing rate. The present value of a ROU asset also includes any lease payments made prior to commencement of the lease and excludes any lease incentives received or to be received under the arrangement. The lease term includes options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases that have original terms of less than 12 months, inclusive of options to extend that are reasonably certain to be exercised, are classified as short-term leases and are not recognized on the consolidated balance sheet.

ROU assets are recorded as noncurrent assets on the consolidated balance sheets. The corresponding liabilities are recorded as an operating lease liability, either current or noncurrent, as applicable, on the consolidated balance sheets. Operating lease costs are recognized on a straight-line basis over the lease term within operations and maintenance or general and administrative expenses based on the use of the related ROU asset.

Revenue Recognition

The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of this revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

1.Step 1: Identify the contract with the customer;

2.Step 2: Identify the performance obligations in the contract;

3.Step 3: Determine the transaction price;

4.Step 4: Allocate the transaction price to the performance obligations in the contract; and

5.Step 5: Recognize revenue when the company satisfies the performance obligations.

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. Per ASC 606, a performance obligation meets the definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: (1) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and (2) the entity’s promise

to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts or both.

When determining the transaction price, an entity must consider the effects of all of the following:

•Variable consideration;

•Constraining estimates of variable consideration;

•The existence of a significant financing component in the contract;

•Non-cash consideration; and

•Consideration payable to a customer.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the Financial Accounting Standards Board (the "FASB"), the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial statements.

Fair value of the digital asset awards received is determined using the quoted price of the related cryptocurrency at the time of receipt.

The Company’s policies with respect to its revenue streams are detailed below.

Energy Revenue

The Company operates as a market participant through PJM Interconnection, a Regional Transmission Organization (“RTO”) that coordinates the movement of wholesale electricity. The Company sells energy in the wholesale generation market in the PJM RTO. Energy revenues are delivered as a series of distinct units that are substantially the same and have the same pattern of transfer to the customer over time and are, therefore, accounted for as a distinct performance obligation. Energy revenue is recognized over time as energy volumes are generated and delivered to the RTO (which is contemporaneous with generation), using the output method for measuring progress of satisfaction of the performance obligation. The Company applies the invoice practical expedient in recognizing energy revenue. Under the invoice practical expedient, energy revenue is recognized based on the invoiced amount which is considered equal to the value provided to the customer for the Company’s performance obligation completed to date.

Prior to June 2022, the Scrubgrass and Panther Creek Plants were committed as "capacity resources" through the annual Base Residual Auction ("BRA") process. In this process, a generator agrees to support the PJM capacity market, and if called upon, is required to deliver its power to the market and receive a capped selling price based on pricing published in the day ahead market. In return for this committed capacity that is deliverable on demand to support the reliability of the PJM grid, generators receive additional Capacity Revenue on a monthly basis. As the mining opportunity grew for Stronghold, being a capacity resource increasingly prevented the Company from being able to consistently power its mining operation when PJM called for the capacity. Beginning in June of 2022, Stronghold withdrew from its capacity commitment and both plants became "energy resources" able to sell power to the grid in the real-time, location marginal pricing, or "LMP," market or use that power in its data centers.

Reactive energy power is provided to maintain a continuous voltage level. Revenue from reactive power is recognized ratably over time as the Company stands ready to provide it if called upon by the PJM RTO.

Capacity Revenue

Prior to June 2022, the Company provided capacity to a customer through participation in capacity auctions held by the PJM RTO. Capacity revenues are a series of distinct performance obligations that are substantially the same and have the same pattern of transfer to the customer over time and are, therefore, accounted for as a distinct performance obligation. The transaction price for capacity is market-based and constitutes the standalone selling price. As capacity represents the Company’s stand-ready obligation, capacity revenue is recognized as the performance obligation is satisfied ratably over time, on a monthly basis, since the Company stands ready equally throughout the period to deliver power to the PJM RTO if called upon. The Company applies the invoice practical expedient in recognizing capacity revenue. Under the invoice practical expedient, capacity revenue is recognized based on the invoiced amount which is considered equal to the value provided to the customer for the Company’s performance obligation completed to date. Penalties may be assessed by the PJM RTO against generation facilities if the facility is not available during the capacity period. The penalties assessed by the PJM RTO, if any, are recorded as a reduction to capacity revenue when incurred.

Bitcoin Mining

The Company has entered into digital asset mining pools by executing contracts, as amended from time to time, with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party, and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed cryptocurrency award the mining pool operator receives (less digital asset transaction fees to the mining pool operator which are recorded as a reduction to cryptocurrency mining revenues), for successfully adding a block to the blockchain. The terms of the agreement provide that neither party can dispute settlement terms after thirty-five days following settlement. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm.

Providing cryptocurrency mining computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is non-cash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions.

Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial statements.

Mining Hosting

The Company has entered into customer hosting contracts whereby the Company provides electrical power to cryptocurrency mining customers, and the customers pay a stated amount per MWh (“Contract Capacity”). This amount is paid monthly in advance. Amounts used in excess of the Contract Capacity are billed based upon calculated formulas as contained in the contracts. If any shortfalls occur to due to outages, make-whole payment provisions contained in the contracts are used to offset the billings to the customer which prevented them from cryptocurrency mining. Advanced payments and customer deposits are recorded as contract liabilities in the consolidated balance sheets.

Waste Coal Tax Credits

Waste coal tax credits are issued by the Commonwealth of Pennsylvania. Facilities that generate electricity by using coal refuse for power generation, control acid gases for emission control and use the ash produced to reclaim mining-affected sites are eligible for such credits. Proceeds related to these credits are recorded upon cash receipt and accounted for as a reduction to fuel costs within operating expenses. For the years ended December 31, 2022, and 2021, waste coal tax credits reduced fuel expenses in the consolidated statements of operations by $1,836,823 and $53,443, respectively.

Renewable Energy Credits (“RECs”)

The Company uses coal refuse, which is classified as a Tier II Alternative Energy Source under Pennsylvania law, to produce energy to sell to the open market (“the grid”). A third party acts as the benefactor, on behalf of the Company, in the open market and is invoiced as RECs are realized. These credits are recognized as a contra-expense within operating expenses to offset the fuel costs incurred to produce this refuse.

Starting late in 2021, and for the year ended December 31, 2022, the Company significantly increased the use of coal refuse as the plant increased megawatt capacity. The plant was relatively dormant during the comparative year ended December 31, 2021. As a result, the Company's usage of coal refuse significantly increased. RECs offset against the costs of fuel operating costs were $9,960,655 and $1,736,071 for the years ended December 31, 2022, and 2021, respectively.

Waste Ash Sales

The Company sells fly ash and scrubber material collected, which are by-products from its coal refuse reclamation used as fuel. The Company realized waste ash sales of $51,453 and $0 for the years ended December 31, 2022, and 2021, respectively, which has been recorded as other operating revenues in the consolidated statements of operations.

Stock-Based Compensation

For equity-classified awards, compensation expense is recognized over the requisite service period based on the computed fair value on the grant date of the award. Equity-classified awards include the issuance of stock options, restricted stock units (“RSUs”) and performance share units ("PSUs").

Notes Payable

The Company records notes payable net of any discounts or premiums. Discounts and premiums are amortized as interest expense or income over the life of the note in such a way as to result in a constant rate of interest when applied to the amount outstanding at the beginning of any given period.

Warrants

Accounting for warrants includes an initial assessment of whether the warrants qualify as debt or equity. For warrants that meet the definition of debt instruments, the Company records the warrant liabilities at fair value as of the balance sheet date and recognizes changes in the balances, over the comparative periods of either the issuance date or the last reporting date, as part of changes in fair value of warrant liabilities within other income (expense). For warrants that meet the definition of equity instruments, the Company records the warrants at fair value as of the measurement date within stockholders' equity (deficit).

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The role of the CODM is to make decisions about allocating resources and assessing performance. The Company’s operations are based on its Energy Operations and Cryptocurrency Operations and, therefore, the Company has concluded that its business operates in two operating segments. The CODM reviews financial information presented on each of these two operating segments for purposes of allocating resources and evaluating financial performance. The Company’s chief executive officer has been identified as its CODM. The Company's two operating segments are also its reportable segments: Energy Operations and Cryptocurrency Operations.

Common Stock – Class V

The Company accounts for the 45.1% interest represented by the Class V common stock outside of permanent equity as a result of certain redemption rights held by the holders that are outside the control of the Company. As such, the Company adjusts the Common Stock – Class V to its maximum redemption amount at the balance sheet date, if higher than the carrying amount. The redemption amount is based on a third-party valuation methodology of the Company’s Class A common stock at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to accumulated deficit.

For each share of Class V common stock outstanding, there is a corresponding outstanding Class A common unit of Stronghold LLC. The redemption of any share of Class V common stock would be accompanied by a concurrent

redemption of the corresponding Class A common unit of Stronghold LLC, such that both the share of Class V common stock and the corresponding Class A common unit of Stronghold LLC are redeemed as a combined unit in exchange for either a single share of Class A common stock or cash of equivalent value based on the fair value of the Class A common stock at the time of the redemption. For accounting purposes, the value of the Class A common units of Stronghold LLC is attributed to the corresponding shares of Class V common stock on the consolidated balance sheet as of December 31, 2022.

Net Income (Loss) Per Share

Basic earnings (loss) per share of common stock (“EPS”) is computed by dividing net income (loss) by the weighted average number of Class A shares of common stock outstanding or shares subject to exercise for a nominal value during the period. Diluted EPS reflects the potential dilution that could occur if securities, or other contracts to issue common stock, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company incurred a net loss for the years ended December 31, 2022, and 2021, basic and diluted net loss per share are the same for the years then ended.

Income Taxes

Reorganization

Upon completion of the Reorganization, the Company is organized as an “Up-C” structure in which substantially all of the assets and business of the consolidated Company are held by Stronghold Inc. through its subsidiaries, and the Company’s direct assets largely consist of cash and investments in subsidiaries. For income tax purposes, the portion of the Company’s earnings allocable to Stronghold Inc. is subject to corporate income tax rates at the federal and state levels. Therefore, the income taxes recorded prior to the Reorganization are not representative of the income taxes after the Reorganization.

The Company accounts for income taxes under the asset and liability method, in which deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in operations in the period that includes the enactment date. A valuation allowance is required when it is "more likely than not" that deferred income tax assets will not be realized after considering all positive and negative evidence available. Based on the Company’s evaluation and application of ASC 740, Income Taxes (“ASC 740”), the Company has determined that its deferred income tax assets are not "more likely than not" to be realized, and therefore, as of December 31, 2022, the Company has recorded a valuation allowance against the net deferred income tax assets of the Company. Factors contributing to this assessment included the Company’s cumulative and current losses, as well as the evaluation of other sources of income as outlined in ASC 740 and potential limitations imposed by Internal Revenue Code ("IRC") Section 382 on the utilization of tax losses.

The accounting for deferred income tax assets and liabilities is often based on assumptions that are subject to significant judgment by management. These assumptions are reviewed and adjusted as facts and circumstances change. The Company continues to evaluate the likelihood of the realizability of its deferred income tax assets, and while the valuation allowance remains in place, the Company expects to record no deferred income tax expense or benefit. Material changes to the Company's income tax accruals may occur in the future based on the potential for income tax audits, changes in legislation or resolution of pending matters.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be "more likely than not" to be sustained upon examination by taxing authorities. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company's consolidated financial statements. The basis of tax positions applied to the Company's tax provisions substantially comply with all applicable federal and state regulations. The Company acknowledges the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to the Company's provision or benefit for income taxes in the period in which a final determination is made. As of December 31, 2022, the Company's tax years ended December 31, 2018, through the current year are open for potential examination by taxing authorities.

Certain of Stronghold Inc.’s subsidiaries are structured as flow-through entities, and therefore, the taxable income or loss of such subsidiaries is included in the income tax returns of the partners, including Stronghold Inc. Application of ASC 740 to these entities results in no recognition of federal or state income taxes at the entity level. The portion of such subsidiaries' activities that are allocable to the Company will increase the Company’s taxable income or loss and be accounted for under ASC 740 by the Company.

Prior to the Reorganization

Scrubgrass and Stronghold LLC were structured as a limited partnership and limited liability company, respectively; therefore, the taxable income or loss of the Company is included in the income tax returns of the individual partners. Accordingly, no recognition has been given to federal or state income taxes in the accompanying consolidated financial statements.

Two of Scrubgrass' subsidiaries, Clearfield and Leesburg, are corporations for federal and state income tax purposes. Income taxes attributable to Clearfield and Leesburg are provided based on the asset and liability method of accounting pursuant to ASC 740, both prior to and subsequent to the Reorganization. Under this method, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Clearfield and Leesburg have not recorded any temporary differences resulting in either a deferred income tax asset or liability as of December 31, 2022, or 2021.

Recently Implemented Accounting Pronouncements

As an “emerging growth company” (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We have elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election.

In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842”), which supersedes ASC Topic 840, Leases. Topic 842 requires lessees to recognize a lease liability and a lease asset on its balance sheet for all leases, including operating leases, with a term greater than 12 months. Topic 842 also expands the required quantitative and qualitative disclosures surrounding leases. The new guidance has been applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Topic 842 also provided an election for practical expedients which permits an entity (i) not to reassess whether any expired or existing contracts contained leases; (ii) to carry forward the existing lease classification; (iii) not to reassess initial direct costs associated with existing leases; (iv) not to separate non-lease components from lease components and instead accounted for all components as a single lease component; (v) and not to apply the provisions of Topic 842 to short-term leases. An operating lease ROU asset and operating lease liability equal to the present value of lease payments of $1,871,241 was recorded as of January 1, 2022. Refer to Note 17 – Operating Lease ROU Assets And Liabilities for the required disclosures.

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), to simplify the accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 became effective on January 1, 2022. The Company adopted ASU 2020-06 effective January 1, 2022, but the adoption of ASU 2020-06 did not have an impact on the Company’s consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, to clarify the accounting for modifications or exchanges of equity-classified warrants. This ASU became effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The FASB issued ASU 2021-04 to establish a principles-based recognition framework according to the substance of the modification transaction. The framework applies to freestanding written call options, such as warrants, that were and remain equity-classified by the issuer after the modification and are not in the scope of other guidance. For example, the framework does not apply to warrants that are modified to compensate for

goods or services within the scope of Topic 718. The framework applies regardless of whether the modification is through an amendment to the existing terms or issuance of a replacement warrant. Accordingly, the provisions introduced under ASU 2021-04 were applicable to the Company during the year ending December 31, 2022, and specifically to the amended May 2022 Warrants.

Recently Issued Accounting Pronouncements

In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, which adds a new impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses at the initial recognition of an in-scope financial instrument and applies it to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. Since the Company meets the definition of a Smaller Reporting Company, as defined by the SEC, the new guidance becomes effective for fiscal years beginning after December 15, 2022. The Company does not expect the new guidance to have a significant impact on its consolidated financial statements.

AUDIT INFORMATION	12 Months Ended
AUDIT INFORMATION	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Urish Popeck & Co., LLC
Auditor Location	Pittsburgh, PA
Auditor Firm ID	1013

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 16 – EARNINGS (LOSS) PER SHARE

Basic EPS is computed by dividing the Company’s net income (loss) by the weighted average number of Class A shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share of Class A common stock after the date of the reorganization on April 1, 2021.


	Year Ended December 31, 2022		April 1 to December 31, 2021
Numerator:
Net loss (1)	$	(195,171,967)	$	(27,255,329)
Less: net loss attributable to predecessor (1/1/21-3/31/21)			(238,948)
Less: net loss attributable to noncontrolling interest	$	(105,910,737)	$	(15,803,234)
Net loss attributable to Stronghold Digital Mining, Inc.	$	(89,261,230)	$	(11,213,147)
Denominator:
Weighted average number of Class A common shares outstanding	25,849,048		5,518,752
Basic net loss per share	$	(3.45)	$	(2.03)
Diluted net loss per share	$	(3.45)	$	(2.03)

(1)Basic and diluted earnings (loss) per share of Class A common stock is presented only for the period after the Company’s Reorganization Transactions. As such, net loss used in the calculation represents the loss during the year ended December 31, 2021 (post-reorganization date of April 1, 2021, through December 31, 2021).

Securities that could potentially dilute earnings (loss) per share in the future that were not included in the computation of diluted net loss per share as of December 31, 2022, and 2021, because their inclusion would be anti-dilutive, were as follows:


	December 31, 2022	December 31, 2021
Stock options	1,721,821	—
RSUs	319,959	—
Warrants (excluding those with $0.01 exercise price)	5,718,499	—
Series A preferred units not yet exchanged for Common A shares	—	1,152,000
Common V shares not yet exchanged for Common A shares	26,057,600	27,057,600
Total	33,817,879	28,209,600

Subsequent to December 31, 2022, warrant holders exercised an additional 4,574,350 of warrants. Additionally, on February 20, 2023, as described in Note 6 – Debt, the Company entered into the Exchange Transaction for shares of the

newly-created Series C Convertible Preferred Stock. As of March 28, 2023, 1,530 units of Series C Convertible Preferred Stock were converted to 3,825,000 of Class A common shares.

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements (Details) - USD ($)	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Operating lease liability	$ 1,823,064	$ 1,871,241

OPERATING LEASE ROU ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

OPERATING LEASE ROU ASSETS AND LIABILITIES

NOTE 17 – OPERATING LEASE ROU ASSETS AND LIABILITIES

The Company leases storage and office space, information technology equipment, and certain machinery and equipment used in the operation of the Company's coal refuse power generation facilities.

Right-of-use assets associated with operating leases were $1,719,037, net of accumulated amortization of $464,845, in the consolidated balance sheet as of December 31, 2022.

The current and noncurrent portions of the Company's operating lease liabilities as of December 31, 2022, were as follows:


	December 31, 2022
Current portion of operating lease liabilities	$	593,063
Long-term operating lease liabilities	1,230,001
Total operating lease liabilities	$	1,823,064

Future operating lease payments as of December 31, 2022, were as follows:


2023	$	768,175
2024	754,243
2025	448,198
2026	180,587
Total operating lease payments (undiscounted)	2,151,203
Less: amount representing interest	(328,139)
Total operating lease payments (discounted)	$	1,823,064

At December 31, 2022, the weighted-average remaining lease term approximated 2.76 years, and the weighted-average discount rate approximated 7.80%. Cash paid for amounts included in the measurement of operating lease liabilities totaled $712,143 for the year ended December 31, 2022, and was classified as operating cash flows in the consolidated statement of cash flows for the year then ended.

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - subsidiary	Dec. 31, 2022	Mar. 31, 2021
Scrubgrass Generating Company, L.P.
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of subsidiaries	2	2

PAYCHECK PROTECTION PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

12 Months Ended

Dec. 31, 2022

PAYCHECK PROTECTION PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

NOTE 6 – DEBT

Debt consisted of the following as of December 31, 2022, and December 31, 2021:


	December 31, 2022			December 31, 2021
$66,076 loan, with interest at 5.55% due July 2021	$	—		$	3,054
$75,000 loan, with interest at 12.67% due April 2021.	—			7,312
$499,520 loan, with interest at 2.49% due December 2023.	124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023.	121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022.	—			103,857
$517,465 loan, with interest at 4.78% due October 2024.	339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025.	513,334			—
$431,825 loan, with interest at 7.60% due April 2024.	121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023.	—		[A]	28,149,998
$25,000,000 loan, with interest at 10.00%, due March 2024.	—		[B]	—
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025.	56,114,249		[C]	—
$10,641,362 loan, with interest at 10.00% due June 2023.	—		[D]	7,546,542
$14,077,800 loan, with interest at 10.00% due June 2023.	—		[E]	9,982,551
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[F]	9,891,200
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[G]	7,319,488
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[H]	—
$33,750,000 Convertible Note, with interest at 10.00% due May 2024.	16,812,500		[I]	—
$92,381 loan, with interest at 1.49% due April 2026.	79,249			—
$64,136 loan, with interest at 11.85% due May 2024.	39,056			—
$196,909 loan, with interest at 6.49% due May 2024.	184,895			—
Total outstanding borrowings	$	74,449,664		$	64,178,492

Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt, net of discounts and issuance fees	$	57,027,118		$	18,378,841

[D] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[E] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[F] Second NYDIG Financing Agreement (as defined below) with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[G] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[H] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[I] Convertible Note with a term of 24 months.

Extinguishment of NYDIG Financing Agreements

with NYDIG, formerly known as Arctos Credit, LLC, and The Provident Bank, a Massachusetts savings bank (“BankProv” and, together with NYDIG, “Purchasers” and each, a “Purchaser”).

WhiteHawk Refinancing Agreement

Convertible Note Exchange

Future scheduled maturities on the outstanding borrowings for each of the next five years as of December 31, 2022, are as follows:


Years ending December 31:
2023	$	17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	—
	$	74,449,664

NOTE 10 – PAYCHECK PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS

On June 8, 2021, the Company repaid the Economic Injury Disaster Loan (“EIDL”), received on March 31, 2020, in the amount of $150,000.

NOTE 28 – FINANCED INSURANCE PREMIUMS

DEBT (Tables)

12 Months Ended

Dec. 31, 2022

Future Scheduled Maturities on the Outstanding Borrowings

Schedule of Debt

Debt consisted of the following as of December 31, 2022, and December 31, 2021:


	December 31, 2022			December 31, 2021
$66,076 loan, with interest at 5.55% due July 2021	$	—		$	3,054
$75,000 loan, with interest at 12.67% due April 2021.	—			7,312
$499,520 loan, with interest at 2.49% due December 2023.	124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023.	121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022.	—			103,857
$517,465 loan, with interest at 4.78% due October 2024.	339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025.	513,334			—
$431,825 loan, with interest at 7.60% due April 2024.	121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023.	—		[A]	28,149,998
$25,000,000 loan, with interest at 10.00%, due March 2024.	—		[B]	—
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025.	56,114,249		[C]	—
$10,641,362 loan, with interest at 10.00% due June 2023.	—		[D]	7,546,542
$14,077,800 loan, with interest at 10.00% due June 2023.	—		[E]	9,982,551
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[F]	9,891,200
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[G]	7,319,488
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023.	—		[H]	—
$33,750,000 Convertible Note, with interest at 10.00% due May 2024.	16,812,500		[I]	—
$92,381 loan, with interest at 1.49% due April 2026.	79,249			—
$64,136 loan, with interest at 11.85% due May 2024.	39,056			—
$196,909 loan, with interest at 6.49% due May 2024.	184,895			—
Total outstanding borrowings	$	74,449,664		$	64,178,492

Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt, net of discounts and issuance fees	$	57,027,118		$	18,378,841

[D] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[E] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[F] Second NYDIG Financing Agreement (as defined below) with a term of 24 months. This debt tranche was extinguished as of September 30, 2022.

[G] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[H] Second NYDIG Financing Agreement with a term of 24 months. This debt tranche was extinguished as of December 31, 2022.

[I] Convertible Note with a term of 24 months.

Future scheduled maturities on the outstanding borrowings for each of the next five years as of December 31, 2022, are as follows:


Years ending December 31:
2023	$	17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	—
	$	74,449,664

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current income tax provision (benefit):
Federal	$ 0	$ 0
State	0	0
Total current income tax provision (benefit)	0	0
Deferred income tax provision (benefit):
Federal	0	0
State	0	0
Total deferred income tax provision (benefit)	0	0
Total income tax provision (benefit)	$ 0	$ 0

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Current and Noncurrent Operating Lease Liabilities

OPERATING LEASE ROU ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

The current and noncurrent portions of the Company's operating lease liabilities as of December 31, 2022, were as follows:


	December 31, 2022
Current portion of operating lease liabilities	$	593,063
Long-term operating lease liabilities	1,230,001
Total operating lease liabilities	$	1,823,064

Operating Lease, Liability, Maturity

Future operating lease payments as of December 31, 2022, were as follows:


2023	$	768,175
2024	754,243
2025	448,198
2026	180,587
Total operating lease payments (undiscounted)	2,151,203
Less: amount representing interest	(328,139)
Total operating lease payments (discounted)	$	1,823,064

RELATED-PARTY TRANSACTIONS - Related Party Purchases (Details) - Affiliated Entity - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Coal purchases from related party	$ 3,854,881	$ 1,098,328
Fuel Service and Beneficial Use Agreement ("FBUA") \| Northampton Fuel Supply Company, Inc.
Related Party Transaction [Line Items]
Coal purchases from related party	3,121,423	163,412
Waste Coal Agreement (the “WCA”) \| Coal Valley Sales, LLC
Related Party Transaction [Line Items]
Coal purchases from related party	$ 733,458	$ 934,916

SUPPLEMENTAL CASH AND NON-CASH INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

Supplemental disclosures of cash flow information for the years ended December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021
Income tax payments	$	—	$	—
Interest payments	$	9,636,505	$	1,195,692

Supplemental non-cash investing and financing activities consisted of the following for the years ended December 31, 2022, and 2021:


	December 31, 2022		December 31, 2021
Equipment financed with debt	$	—	$	45,793,381
Purchases of property, plant and equipment through finance leases	938,902		—
Purchases of property, plant and equipment included in accounts payable or accrued liabilities	6,614,671		—
Operating lease right-of-use assets exchanged for lease liabilities	630,831		—
Reclassifications from deposits to property, plant and equipment	63,363,287		—
McClymonds arbitration award - paid by Q Power	5,038,122		—
Convertible note payment via warrants	3,340,078		—
Redemption of Series A convertible preferred shares	33,529,837		—
Return of miners to settle debt	39,008,651		—
Issued as part of financing:
Warrants - WhiteHawk	1,150,000		1,999,396
Warrants - convertible note	6,604,881		—
Common Class A shares - NYDIG	—		1,389,888
Warrants issued as part of stock registrations - B.Riley Warrants	—		780,472
Series A redeemable and convertible preferred stock - Aspen Interest buyout	—		5,000,000
Series A redeemable and convertible preferred stock units - Panther Creek Acquisition	—		38,315,520
Financed insurance premiums	5,484,449		6,890,509

PRIVATE PLACEMENTS - Black Scholes Schedule (Details) - Common Class A	Dec. 31, 2022 USD ($) $ / T
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected life (in years)	5 years 6 months
Fair value \| $	$ 2,131,959
Expected volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	1.309
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0.040
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Warrants, measurement input	0

SUBSEQUENT EVENTS (Details) $ in Millions	Feb. 06, 2023 miner petahash	Mar. 31, 2023 shares	Mar. 28, 2023 USD ($) transformer shares	May 15, 2022 shares
Subsequent Event [Line Items]
Warrants issued during period (in shares)				6,318,000
Subsequent Event
Subsequent Event [Line Items]
Hosting agreement, term	2 years
Hosting agreement, number of miners \| miner	4,500
Hosting agreement, miner capacity, total petahash per second \| petahash	420
Warrants issued during period (in shares)		4,574,350
Subsequent Event \| Bruce - Merrilees Electric Co.
Subsequent Event [Line Items]
Payable eliminated \| $			$ 11.4
Number of transformers released \| transformer			10
Number of transformers cancelled \| transformer			90
Subsequent Event \| B&M Note \| Loans payable \| Bruce - Merrilees Electric Co.
Subsequent Event [Line Items]
Debt face amount \| $			$ 3.5
Warrants issued during period (in shares)			3,000,000

REDEEMABLE COMMON STOCK

12 Months Ended

Dec. 31, 2022

Temporary Equity Disclosure [Abstract]

REDEEMABLE COMMON STOCK

NOTE 14 – REDEEMABLE COMMON STOCK

Private Placements: Redeemable Common Stock – Series A and B

The following is a summary of the Series A and Series B valuations and conversions to common equity:


	Series A		Series B
Proceeds	$	85,000,000	$	20,000,305
Transaction fees:
B. Riley Securities	(5,100,000)		(1,200,000)
Legal and filing fees	(1,226,990)		(408,997)
Debt issuance costs pertaining to stock registration warrants - refer to Note 13	(631,897)		(148,575)
Total net redeemable common stock	$	78,041,113	$	18,242,733
Conversion to common Class A shares	$	(78,041,113)	$	(18,242,733)
Remaining in net redeemable common stock	$	—	$	—

Common Stock – Class V

The Company recorded redeemable common stock as presented in the table below.



	Common Class V
	Shares	Amount
Balance - December 31, 2021	27,057,600	$	301,052,617
Net loss attributable to noncontrolling interest	—	(101,770,413)
Maximum redemption right valuation	—	(187,527,617)
Redemption of Class V shares	(1,000,000)	—
Balance - December 31, 2022	26,057,600	$	11,754,587

NOTE 29 – PRIVATE PLACEMENTS

May 2022 Private Placement

September 2022 Private Placement


	December 31, 2022
Expected volatility	130.9		%
Expected life (in years)	5.5
Risk-free interest rate	4.0		%
Expected dividend yield	0		%
Fair value	$	2,131,959

Net loss attributable to parent

EQUIPMENT DEPOSITS AND MINER SALES - Narrative (Details)						3 Months Ended		12 Months Ended
	Aug. 16, 2022 USD ($) miner	May 13, 2022 USD ($)	May 12, 2022 USD ($) miner	Jun. 02, 2021 USD ($)	Apr. 02, 2021 USD ($) miner	Sep. 30, 2022 miner	Jun. 30, 2022 USD ($) miner petahash $ / terahash	Dec. 31, 2022 USD ($) miner	Dec. 31, 2021 USD ($)	Mar. 31, 2022 USD ($)	Nov. 16, 2021 USD ($) miner exahash	Oct. 28, 2021 USD ($) miner exahash
Unrecorded Unconditional Purchase Obligation [Line Items]
Impairment								$ 17,348,742
Realized loss on sale of miner assets								$ 8,012,248	$ 0
Count (in miners) \| miner								43,580
Total Commitments								$ 195,291,111
Cryptocurrency machines
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of miners sold \| miner							3,425
Total petahash per second delivered by equipment sold (in petahash) \| petahash							411
Miners sold							$ 21,857,028
Cost per terahash for miners sold (in USD per terahash) \| $ / terahash							50.70
Realized loss on sale of miner assets							$ 8,012,248
Number of miners returned \| miner						26,000
Number of miners plugged in and operating prior to delivery \| miner						18,700
MinerVa, MinerVA
Unrecorded Unconditional Purchase Obligation [Line Items]
Impairment								17,348,742		$ 12,228,742
Additional impairment								$ 5,120,000
Count (in miners) \| miner					15,000			15,000
Total Commitments					$ 73,387,500			$ 68,887,550
Purchases				$ 14,677,500	$ 44,032,500
Miner Equipment, Bitmain Technologies Limited, Agreement One
Unrecorded Unconditional Purchase Obligation [Line Items]
Count (in miners) \| miner												12,000
Total exahash per second delivered by equipment purchased (in exahash) \| exahash												1.2
Total Commitments												$ 75,000,000
Purchases	$ 57,000,000
Miners purchased (in miners) \| miner	4,500
Miner Equipment, Bitmain Technologies Limited, Agreement Two
Unrecorded Unconditional Purchase Obligation [Line Items]
Count (in miners) \| miner											1,800
Total exahash per second delivered by equipment purchased (in exahash) \| exahash											0.3
Total Commitments											$ 19,350,000
Purchases			$ 13,000,000
Miners purchased (in miners) \| miner			0
Miner Equipment, Cryptech Solutions, Agreement
Unrecorded Unconditional Purchase Obligation [Line Items]
Total Commitments		$ 12,600,000
Purchases		$ 5,638,500

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 30 – SUBSEQUENT EVENTS On February 6, 2023, Stronghold entered into a two-year hosting agreement with Foundry Digital LLC, replacing the previous hosting agreement entered into on November 7, 2022. The new Foundry hosting agreement covers the same Bitcoin mining rigs as the prior hosting agreement, representing approximately 4500 miners with total hash rate capacity of approximately 420 PH/s. Pursuant to the new Foundry hosting agreement, Foundry will participate fully in the Company's vertically integrated business model at the Panther Creek Plant. On March 28, 2023, the Company and Stronghold LLC entered into a Settlement Agreement (the “B&M Settlement”) with its electrical contractor, Bruce & Merrilees Electric Co. (“B&M”). Pursuant to the B&M Settlement, B&M agreed to eliminate an approximately $11.4 million outstanding payable in exchange for a Promissory Note in the amount of $3.5 million (the "B&M Note") and a Stock Purchase Warrant for the right to purchase from the Company 3,000,000 shares of Class A Common Stock (the B&M Warrant"). The B&M note has no definitive payment schedule or term. Pursuant to the Settlement Agreement, B&M released ten (10) 3000kva transformers to the Company and fully cancelled ninety (90) transformers remaining under a pre-existing order with a third-party supplier. The terms of the Settlement Agreement included a mutual release of all claims. Pursuant to the B&M Warrant, the Company agreed to enter into a registration rights agreement with B&M for the shares underlying the B&M warrants no later than April 4, 2023. Simultaneous with the Settlement Agreement, the Company and each of its subsidiaries entered into a Subordination Agreement with B&M and WhiteHawk Capital Partners LP ("WhiteHawk Capital") pursuant to which all obligations, liabilities and indebtedness of every nature of the Company and each of its subsidiaries owed to B&M pursuant to the B&M Note, Settlement Agreement and otherwise shall be subordinate and subject in right and time of payment, to the prior payment of full of the Company's obligation to WhiteHawk pursuant to the Credit Agreement.

EARNINGS (LOSS) PER SHARE - Schedule of Earnings per Share (Details) - USD ($)

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2021

Dec. 31, 2021

Dec. 31, 2022

Dec. 31, 2021

Numerator:

Net loss

$ (27,255,329)

$ (195,171,967)

$ (27,255,329)

$ (238,948)

(11,213,147)

(89,261,230)

Net losses attributable to noncontrolling interest

$ (15,803,234)

$ (105,910,737)

$ (15,803,234)

Denominator:

Weighted average shares of Class A common shares outstanding (in shares)

5,518,752

25,849,048

^[1]

5,518,752

^[1]

Basic net loss per share (in USD per share)

$ (2.03)

$ (3.45)

^[1]

$ (2.03)

^[1]

Diluted net loss per share (in USD per share)

$ (2.03)

$ (3.45)

^[1]

$ (2.03)

^[1]

[1]

Basic and diluted net loss per share of Class A common stock is presented only for the period after the Company’s Reorganization Transactions. See Note 1 – Business Combinations for a description of the Reorganization Transactions. See Note 16 – Earnings (Loss) Per Share for the calculation of net loss per share.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Schedule of Earnings Per Share, Basic and Diluted

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]


	Year Ended December 31, 2022		April 1 to December 31, 2021
Numerator:
Net loss (1)	$	(195,171,967)	$	(27,255,329)
Less: net loss attributable to predecessor (1/1/21-3/31/21)			(238,948)
Less: net loss attributable to noncontrolling interest	$	(105,910,737)	$	(15,803,234)
Net loss attributable to Stronghold Digital Mining, Inc.	$	(89,261,230)	$	(11,213,147)
Denominator:
Weighted average number of Class A common shares outstanding	25,849,048		5,518,752
Basic net loss per share	$	(3.45)	$	(2.03)
Diluted net loss per share	$	(3.45)	$	(2.03)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	December 31, 2022	December 31, 2021
Stock options	1,721,821	—
RSUs	319,959	—
Warrants (excluding those with $0.01 exercise price)	5,718,499	—
Series A preferred units not yet exchanged for Common A shares	—	1,152,000
Common V shares not yet exchanged for Common A shares	26,057,600	27,057,600
Total	33,817,879	28,209,600

SEGMENT REPORTING - Schedule of Assets, Operating Segments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 13,296,703	$ 31,790,115
Digital currencies	109,827	10,417,865
Accounts receivable	10,837,126	2,111,855
Due from related parties	73,122	0
Prepaid insurance	4,877,935	6,301,701
Inventory	4,471,657	3,372,254
Other current assets	1,975,300	661,640
Equipment deposits	10,081,307	130,999,398
Property, plant and equipment, net	167,204,681	166,657,155
Land	1,748,440	1,748,440
Road bond	211,958	211,958
Operating lease right-of-use assets	1,719,037	0
Security deposits	348,888	348,888
TOTAL ASSETS	216,955,981	354,621,269
Energy Operations
Segment Reporting Information [Line Items]
Cash and cash equivalents	693,805	714,019
Digital currencies	0	0
Accounts receivable	10,628,570	256,103
Due from related parties	73,122	0
Prepaid insurance	2,438,968	3,150,851
Inventory	4,471,657	3,372,254
Other current assets	0	0
Equipment deposits	0	0
Property, plant and equipment, net	45,645,205	49,009,509
Land	1,748,440	1,748,440
Road bond	211,958	211,958
Operating lease right-of-use assets	1,045,365	0
Security deposits	348,888	348,888
TOTAL ASSETS	67,305,978	58,812,022
Cryptocurrency Operations
Segment Reporting Information [Line Items]
Cash and cash equivalents	12,602,898	31,076,096
Digital currencies	109,827	10,417,865
Accounts receivable	208,556	1,855,752
Due from related parties	0	0
Prepaid insurance	2,438,968	3,150,851
Inventory	0	0
Other current assets	1,975,300	661,640
Equipment deposits	10,081,307	130,999,398
Property, plant and equipment, net	121,559,476	117,647,646
Land	0	0
Road bond	0	0
Operating lease right-of-use assets	673,672	0
Security deposits	0	0
TOTAL ASSETS	$ 149,650,004	$ 295,809,248

ACQUISITION - Narrative (Details) - Panther Creek Power Operating LLC - USD ($) $ in Thousands	Nov. 02, 2021	Nov. 05, 2021	Jul. 09, 2021
Asset Acquisition [Line Items]
Cash payment to acquire asset, gross	$ 3,000
Payment to acquire asset, net of cash acquired	$ 2,192
Percentage of land closing costs share	50.00%
Equity interest issued (in shares)	1,152,000
Number of shares called by each unit or stock			1
Number of shares called by redemption		1,152,000
Member Units
Asset Acquisition [Line Items]
Equity interest issued (in shares)	1,152,000

ACQUISITION - Fair Value of Identifiable Assets and Liabilities as of Acquisition Date (Details) - Panther Creek Power Operating LLC $ in Thousands	Nov. 02, 2021 USD ($) shares
The purchase price allocation was as follows (in thousands):
Cash and cash equivalents	$ 491
Accounts receivable - trade	831
Prepaids and other current assets	429
Materials and supplies	1,559
Land and Rights of Way	1,727
Property, plant and equipment	43,782
Accounts payable	(2,943)
Accrued expenses	(298)
Due to related parties	(73)
Total identifiable assets and liabilities	45,505
Purchase price consideration	45,505
Equity interest issued value	$ 38,316
Equity interest issued (in shares) \| shares	1,152,000
Payment to acquire asset, net of cash acquired	$ 2,192
Percentage of land closing costs share	50.00%
Land closing costs share amount	$ 808
Asset Retirement Obligation
The purchase price allocation was as follows (in thousands):
Asset acquisition, consideration transferred, liabilities incurred	501
Notes Payable, Other Payables
The purchase price allocation was as follows (in thousands):
Asset acquisition, consideration transferred, liabilities incurred	218
Legal and Professional Fees
The purchase price allocation was as follows (in thousands):
Asset acquisition, consideration transferred, liabilities incurred	613
Existing Relationship Payables
The purchase price allocation was as follows (in thousands):
Asset acquisition, consideration transferred, liabilities incurred	$ 3,665

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 0	$ 0
Net deferred tax assets	0	0
Valuation allowance	40,920,175	10,243,600
Operating loss carryforwards, prior to ownership change	2,100,000
Deferred income tax expense (benefit)	0	$ 0
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	113,800,000
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 43,200,000

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2022

NOTE 9 – RELATED-PARTY TRANSACTIONS

Waste Coal Agreement

The Company is obligated under a Waste Coal Agreement (the “WCA”) to take minimum annual delivery of 200,000 tons of waste coal as long as there is a sufficient quantity of waste coal that meets the Average Quality Characteristics (as defined in the WCA). Under the terms of the WCA, the Company is not charged for the waste coal itself but is charged a $6.07 per ton base handling fee as it is obligated to mine, process, load, and otherwise handle the waste coal for itself and also for other customers of Coal Valley Sales, LLC (“CVS”) from the Russellton site specifically. The Company is also obligated to unload and properly dispose of ash at the Russellton site. The Company is charged a reduced handling fee of $1.00 per ton for any tons in excess of the minimum take of 200,000 tons. The Company is the designated operator at the Russellton site and, therefore, is responsible for complying with all state and federal requirements and regulations.

The Company purchases coal from Coal Valley Properties, LLC, a single-member limited liability company which is entirely owned by one individual who has ownership in Q Power, and from CVS. CVS is a single-member limited liability company which is owned by a coal reclamation partnership of which an owner of Q Power has a direct and an indirect interest in the partnership of 16.26%.

The Company expensed $733,458 and $303,500 for the years ended December 31, 2022, and 2021, respectively, associated with coal purchases from CVS, which is included in fuel expense in the consolidated statements of operations. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

Fuel Service and Beneficial Use Agreement

The Company has a Fuel Service and Beneficial Use Agreement (“FBUA”) with Northampton Fuel Supply Company, Inc. (“NFS”), a wholly-owned subsidiary of Olympus Power. The Company buys fuel from and sends ash to NFS, for the mutual benefit of both facilities, under the terms and rates established in the FBUA. The FBUA expires December 31, 2023. The Company expensed $3,121,423 and $163,412 for the years ended December 31, 2022, and 2021, respectively, which is included in fuel expense in the consolidated statements of operations. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

Fuel purchases under these agreements for the years ended December 31, 2022, and December 31, 2021, were as follows:


	December 31, 2022		December 31, 2021
Coal Purchases:
Northampton Fuel Supply Company, Inc.	$	3,121,423	$	163,412
Coal Valley Sales, LLC	733,458		934,916
Total	$	3,854,881	$	1,098,328

Fuel Management Agreements

Panther Creek Fuel Services LLC

Effective August 1, 2012, the Company entered into the Fuel Management Agreement (the “Fuel Agreement”) with Panther Creek Fuel Services LLC, a wholly-owned subsidiary of Olympus Services LLC which, in turn, is a wholly-owned subsidiary of Olympus Power LLC. Under the Fuel Agreement, Panther Creek Fuel Services LLC provides the Company with operations and maintenance services with respect to the Facility. The Company reimburses Panther Creek Energy Services LLC for actual wages and salaries. The Company expensed $1,697,850 and $303,500 for the years ended December 31, 2022, and 2021, respectively, which is included in operations and maintenance expense in the consolidated statements of operations. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

Scrubgrass Fuel Services LLC

Effective February 1, 2022, the Company entered into the Fuel Management Agreement (the “Scrubgrass Fuel Agreement”) with Scrubgrass Fuel Services LLC, a wholly-owned subsidiary of Olympus Services LLC, which, in turn, is a wholly owned subsidiary of Olympus Power LLC. Under the Scrubgrass Fuel Agreement, Scrubgrass Fuel Services LLC

provides the Company with operations and maintenance services with respect to the Facility. The Company reimburses Scrubgrass Energy Services LLC for actual wages and salaries. The Company expensed $780,410 for the year ended December 31, 2022, which is included in operations and maintenance expense in the consolidated statement of operations. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

O&M Agreements

Olympus Power LLC

On November 2, 2021, Stronghold LLC entered into an Operations, Maintenance and Ancillary Services Agreement (the “Omnibus Services Agreement”) with Olympus Stronghold Services, LLC (“Olympus Stronghold Services”), whereby Olympus Stronghold Services currently provides certain operations and maintenance services to Stronghold LLC and currently employs certain personnel to operate the Panther Creek Plant and the Scrubgrass Plant. Stronghold LLC reimburses Olympus Stronghold Services for those costs incurred by Olympus Stronghold Services and approved by Stronghold LLC in the course of providing services under the Omnibus Services Agreement, including payroll and benefits costs and insurance costs. The material costs incurred by Olympus Stronghold Services shall be approved by Stronghold LLC. From November 2, 2021, until October 1, 2023, Stronghold LLC also agreed to pay Olympus Stronghold Services a management fee at the rate of $1,000,000 per year, payable monthly for services provided at each of the Panther Creek Plant and Scrubgrass Plant, and an additional one-time mobilization fee of $150,000 upon the effective date of the Omnibus Services Agreement, which was deferred until 2023. Effective October 1, 2022, Stronghold LLC began paying Olympus Stronghold Services a management fee for the Panther Creek Plant in the amount of $500,000 per year, payable monthly for services provided at the Panther Creek Plant. This is a reduction of $500,000 from the $1,000,000 per year management fee that the Company was previously scheduled to pay Olympus Stronghold Services. The Company expensed $1,086,649 and $129,735 for the years ended December 31, 2022, and 2021, respectively, which includes the monthly management fees plus reimbursable costs incurred by Olympus Stronghold Services for payroll, benefits and insurance. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

Panther Creek Energy Services LLC

Effective August 2, 2021, the Company entered into the Operations and Maintenance Agreement (the “O&M Agreement”) with Panther Creek Energy Services LLC, a wholly-owned subsidiary of Olympus Services LLC which, in turn, is a wholly-owned subsidiary of Olympus Power LLC. Under the O&M Agreement, Panther Creek Energy Services LLC provides the Company with operations and maintenance services with respect to the Facility. The Company reimburses Panther Creek Energy Services LLC for actual wages and salaries. The Company also agreed to pay a management fee of $175,000 per operating year, which is payable monthly, and is adjusted by the consumer price index on each anniversary of the effective date. The Company expensed $3,877,338 and $1,027,860 for the years ended December 31, 2022, and 2021, respectively, which includes the monthly management fees plus reimbursable costs incurred by Olympus Stronghold Services for payroll, benefits and insurance. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

In connection with the equity contribution agreement, effective July 9, 2021 (the "Equity Contribution Agreement"), the Company entered into the Amended and Restated Operations and Maintenance Agreement (the “Amended O&M Agreement”) with Panther Creek Energy Services LLC. Under the Amended O&M Agreement, the management fee is $250,000 for the twelve-month period following the effective date and $325,000 per year thereafter. The effective date of the Amended O&M Agreement was the closing date of the Equity Contribution Agreement.

Scrubgrass Energy Services LLC

Effective February 1, 2022, the Company entered into the Operations and Maintenance Agreement (the “Scrubgrass O&M Agreement”) with Scrubgrass Energy Services LLC, a wholly-owned subsidiary of Olympus Services LLC which, in turn, is a wholly-owned subsidiary of Olympus Power LLC. Under the Scrubgrass O&M Agreement, Scrubgrass Energy Services LLC provides the Company with operations and maintenance services with respect to the Facility. The Company reimburses Scrubgrass Energy Services LLC for actual wages and salaries. The Company also agreed to pay a management fee of $175,000 per operating year, which is payable monthly, and is adjusted by the consumer price index on each anniversary date of the effective date. The Company expensed $6,476,968 for the year ended December 31, 2022, which includes the monthly management fees plus reimbursable costs incurred by Olympus Stronghold Services for payroll, benefits and insurance. See the composition of the due to related parties balance as of December 31, 2022, and 2021, below.

In connection with the Equity Contribution Agreement effective July 9, 2021, the Company entered into the Amended and Restated Operations and Maintenance Agreement (the “Scrubgrass Amended O&M Agreement”) with Scrubgrass Energy Services LLC. Under the Scrubgrass Amended O&M Agreement, the management fee is $250,000 for the twelve-month period following the effective date and $325,000 per year thereafter. The effective date of the Scrubgrass Amended O&M Agreement was the closing date of the Equity Contribution Agreement.

Effective October 1, 2022, Stronghold LLC no longer pays Olympus Stronghold Services a management fee for the Scrubgrass Plant.

Management Services Agreement

On May 10, 2021, a new management and advisory agreement was entered into between Q Power and William Spence (the "Spence Agreement"). In consideration of consultant’s performance of the services thereunder, Q Power will pay Mr. Spence a fee at the rate of $50,000 per complete calendar month (pro-rated for partial months) that Mr. Spence provides services thereunder, payable in arrears. The previous agreement requiring monthly payments of $25,000 was terminated. Q Power will not be liable for any other payments to Mr. Spence including, but not limited to, any cost or expenses incurred by Mr. Spence in the course of performing his obligations thereunder. Under the Spence Agreement, the Company made total payments of $550,000 and $600,000 for the years ended December 31, 2022, and 2021, respectively.

Amounts due to related parties as of December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021
Due to related parties:
Coal Valley Properties, LLC	$	134,452	$	134,452
Q Power LLC	500,000		500,000
Coal Valley Sales, LLC	—		202,334
Panther Creek Energy Services LLC	10,687		94,434
Panther Creek Fuel Services LLC	53,482		47,967
Northampton Generating Fuel Supply Company, Inc.	594,039		321,738
Olympus Power LLC and other subsidiaries	78,302		129,735
Scrubgrass Energy Services LLC	4,087		—
Scrubgrass Fuel Services LLC	—		—
Totals	$	1,375,049	$	1,430,660

Lastly, for the year ended December 31, 2021, the Company paid $69,000 to Beard Aviation LLC for various company-related business trips. There were no such payments during the year ended December 31, 2022. Beard Aviation LLC is owned by Greg Beard, the Chief Executive Officer (“CEO”) of the Company.

STOCK-BASED COMPENSATION - Stock Options Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Outstanding, beginning balance (in shares)	3,379,083	0
Granted (in shares)	205,964	3,379,083
Exercised (in shares)	0	0
Cancelled/forfeited (in shares)	(35,000)	0
Outstanding, ending balance ((in shares)	3,550,047	3,379,083
Shares vested and expected to vest (in shares)	3,550,047
Exercisable (in shares)	1,721,821
Weighted- Average Exercise Price
Outstanding, beginning balance (in USD per share)	$ 8.91	$ 0
Granted (in USD per share)	10.61	8.91
Exercised (in USD per share)	0	0
Cancelled/forfeited (in USD per share)	18.06	0
Outstanding, ending balance (in USD per share)	9.03	$ 8.91
Shares vested and expected to vest (in USD per share)	9.03
Exercisable (in USD per share)	$ 9.06
Weighted- Average Contractual Term
Granted	9 years 1 month 9 days	9 years 7 months 9 days
Outstanding	9 years	9 years 7 months 9 days
Cancelled/forfeited	8 years 8 months 4 days
Shares vested and expected to vest	8 years 7 months 13 days
Exercisable as of end of period	8 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 30,906,003	$ 0
Outstanding at end of period	0	$ 30,906,003
Shares vested and expected to vest	0
Exercisable as of end of period	$ 0

CONCENTRATIONS	12 Months Ended
CONCENTRATIONS	Dec. 31, 2022
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 7 – CONCENTRATIONS Credit risk is the risk of loss the Company would incur if counterparties fail to perform their contractual obligations (including accounts receivable). The Company primarily conducts business with counterparties in the cryptocurrency mining and energy industry. This concentration of counterparties may impact the Company’s overall exposure to credit risk, either positively or negatively, in that its counterparties may be similarly affected by changes in economic, regulatory or other conditions. The Company mitigates potential credit losses by dealing, where practical, with counterparties that are rated at investment grade by a major credit agency or have a history of reliable performance within the cryptocurrency mining and energy industry. Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and accounts receivable. Cash and cash equivalents customarily exceed federally insured limits. The Company’s significant credit risk is primarily concentrated with CES. CES accounted for 28% of our energy operations segment revenues for the year ended December 31, 2022. Over the course of 2022, the Company transitioned entirely to CES from DEBM, and it expects that they will represent approximately 100% of our energy segment revenue in 2023. CES accounted for approximately 100% of the Company’s accounts receivable balance as of December 31, 2022, and 2021, including approximately $5.1 million CES expects to receive from PJM on the Company's behalf, and forward to the Company upon receipt. For the year ended December 31, 2022, and 2021, the Company purchased 17% and 30% of coal from two related parties, respectively. See Note 9 – Related-Party Transactions for further information.

SUPPLEMENTAL CASH AND NON-CASH INFORMATION

12 Months Ended

Dec. 31, 2022

Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH AND NON-CASH INFORMATION

NOTE 19 – SUPPLEMENTAL CASH AND NON-CASH INFORMATION

Supplemental disclosures of cash flow information for the years ended December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021
Income tax payments	$	—	$	—
Interest payments	$	9,636,505	$	1,195,692

Supplemental non-cash investing and financing activities consisted of the following for the years ended December 31, 2022, and 2021:


	December 31, 2022		December 31, 2021
Equipment financed with debt	$	—	$	45,793,381
Purchases of property, plant and equipment through finance leases	938,902		—
Purchases of property, plant and equipment included in accounts payable or accrued liabilities	6,614,671		—
Operating lease right-of-use assets exchanged for lease liabilities	630,831		—
Reclassifications from deposits to property, plant and equipment	63,363,287		—
McClymonds arbitration award - paid by Q Power	5,038,122		—
Convertible note payment via warrants	3,340,078		—
Redemption of Series A convertible preferred shares	33,529,837		—
Return of miners to settle debt	39,008,651		—
Issued as part of financing:
Warrants - WhiteHawk	1,150,000		1,999,396
Warrants - convertible note	6,604,881		—
Common Class A shares - NYDIG	—		1,389,888
Warrants issued as part of stock registrations - B.Riley Warrants	—		780,472
Series A redeemable and convertible preferred stock - Aspen Interest buyout	—		5,000,000
Series A redeemable and convertible preferred stock units - Panther Creek Acquisition	—		38,315,520
Financed insurance premiums	5,484,449		6,890,509

NONCONTROLLING INTERESTS - Permanent Equity Adjustments (Details)	2 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Nov. 02, 2021 $ / shares shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ (59,164,778)	$ (4,047,107)
Net losses attributable to noncontrolling interest		$ (15,803,234)	(105,910,737)	(15,803,234)
Redemption of Series A convertible preferred shares		1	0
Ending balance	$ (59,164,778)	$ (59,164,778)	$ 83,025,144	$ (59,164,778)
Preferred stock, issued (in shares) \| shares	1,152,000	1,152,000	0	1,152,000	1,152,000
Series A
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock, issued (in USD per share) \| $ / shares					$ 33.26
Preferred Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 38,315,520		$ 37,670,161	$ 0
Net losses attributable to noncontrolling interest	(645,359)	$ (645,359)	(4,140,324)
Redemption of Series A convertible preferred shares			(33,529,837)
Ending balance	$ 37,670,161	$ 37,670,161	$ 0	$ 37,670,161

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Business Combination and Asset Acquisition [Abstract]

ACQUISITION

12 Months Ended

Dec. 31, 2022

ACQUISITION

NOTE 24 – ACQUISITION

On July 9, 2021, the Company entered into a purchase agreement with Panther Creek Reclamation Holdings, LLC ("Panther Creek Reclamation"), a subsidiary of Olympus (the "Panther Creek Acquisition") to acquire all of the assets of Panther Creek Power Operating LLC (“Panther Creek”), comprised primarily of a coal refuse reclamation facility with 80 MW of net electricity generation capacity located near Nesquehoning, Pennsylvania (the "Panther Creek Plant"). Stronghold Inc. completed the Panther Creek Acquisition on November 2, 2021. The consideration for the Panther Creek Plant was approximately $3.0 million in cash ($2.192 million after deducting 50% of land closing costs agreed to be split with the seller) and 1,152,000 Stronghold LLC units, together with a corresponding number of shares of Class V common stock. Pursuant to the Redemption Right (as defined herein), each Stronghold LLC unit, combined with a corresponding share of Class V common stock, may be redeemed for one share of Class A common stock (or cash, in certain instances).

Furthermore, on November 5, 2021, the Company entered into a Registration Rights Agreement with Panther Creek Reclamation, whereby the Company agreed to register the 1,152,000 shares of Class A common stock that may be received upon the Panther Creek Redemption. In November 2022, these shares were redeemed for Class A common stock. Refer to Note 15 – Noncontrolling Interests for further details.

The transaction was analyzed in accordance with ASC 805, Business Combinations, to first determine whether the acquired assets constituted a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the acquired assets do not constitute a business. If the assets acquired are not a business, then the reporting entity should record the transaction as an asset acquisition in accordance with ASC 805-50 (using the cost accumulation model, rather than the fair value model that applies to business combinations).

The following steps were performed to determine whether substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset or group of similar identifiable assets:

Step 1. Combine the identifiable assets into a single identifiable asset. The Company concluded that none of the assets qualified for combination into a single identifiable asset per ASC 805-10-55-5B.

Step 2. Combine the assets into similar assets. The Company concluded that none of the assets qualified for combination as similar assets under ASC 805-10-55-5C.

Step 3. Measure the fair value of the gross assets acquired. The Company concluded that the gross assets acquired included consideration transferred in excess of the fair value of the net identifiable assets acquired (i.e., goodwill in a

business combination), but it did not include goodwill resulting from the effects of deferred income tax liabilities, cash and cash equivalents or deferred income tax assets.

Step 4. Determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The Company compared the fair value of the single identifiable asset (or group of similar assets) to the fair value of the gross assets acquired.

Based on the above analysis, substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset or group of similar identifiable assets. As a result, the transaction met the screen test as outlined in ASC 805-10-55-5A through 55-5C and was treated as an asset acquisition.

The following represented the fair value of the identifiable assets and liabilities as of the acquisition date of November 2, 2021:


The purchase price allocation was as follows (in thousands):
Cash and cash equivalents	$	491
Accounts receivable - trade	831
Prepaids and other current assets	429
Materials and supplies	1,559
Land and Rights of Way	1,727
Property, plant and equipment	43,782
Accounts payable	(2,943)
Accrued expenses	(298)
Due to related parties	(73)
Total identifiable assets and liabilities	$	45,505
Total purchase consideration (1)	$	45,505

(1) The $45.5 million purchase price consideration consisted of $38.316 million fair value of 1,152,000 Series A redeemable preferred units (registered for public sale), $2.192 million in cash (net of 50% of land closing costs $0.808 million), $0.501 million in asset retirement obligations, $0.218 million in assumed notes payable, $0.613 million in purchase related legal and professional fees, and $3.665 million related to the settlement of various existing relationship payables (partially offset by receivables).

HOSTING SERVICES AGREEMENT	12 Months Ended
HOSTING SERVICES AGREEMENT	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
HOSTING SERVICES AGREEMENT	NOTE 27 – HOSTING SERVICES AGREEMENT On August 17, 2021, Stronghold LLC entered into a Hosting Services Agreement with Northern Data PA, LLC ("Northern Data") whereby Northern Data agreed to construct and operate a colocation data center facility located on the Scrubgrass Plant (as defined below) (the "Hosting Agreement"), the primary business purpose of which was to provide hosting services and support cryptocurrency miners. In October 2021, the final deposit owed to Northern Data was paid, and Northern Data began to deliver the 9,900 miners committed in the Hardware and Purchase Agreement dated April 14, 2021. On March 28, 2022, the Company restructured the Hosting Agreement to obtain an additional 2,675 miners at a cost of $37.5 per terahash (to be paid five months after delivery) and temporarily reduced the profit share for Northern Data while incorporating performance thresholds until the data center build-out was complete. On August 10, 2022, the Company and Northern Data terminated the provision of the restructured Hosting Agreement related to the additional 2,675 miners. As a result, the Company neither made payment for such additional miners nor obtained title to such additional miners. The Company determined the arrangement with Northern Data met the definition of a lease under Topic 842 and also determined the proper accounting for this lease. The company recorded lease expense related to the variable payments for Northern Data's profit share as Bitcoins are mined each period. Once operational, after deducting an amount equal to $0.027 per kilowatt hour for the actual power used, 65% of all cryptocurrency revenue generated by the miners in Northern Data's pods were payable to the Company, and 35% of all cryptocurrency revenue generated by the miners were payable to Northern Data or its designee and recorded as a lease expense. On September 30, 2022, the Company entered into a settlement agreement with Northern Data (the "Settlement Agreement") whereby the Hosting Agreement was mutually terminated. Pursuant to the Settlement Agreement, for a term of two years until October 1, 2024, the Company has the right to lease from Northern Data for its exclusive use, access and operation of (i) 24 Northern Data manufactured pods capable of supporting approximately 550 Bitcoin miners each for an aggregate amount of approximately 13,200 available slots and (ii) four Strongboxes that the Company previously sold to Northern Data capable of supporting approximately 264 Bitcoin miners each for an aggregate of approximately 1,056 mining slots for $1,000 annually. Following the Settlement Agreement, the revenue share is no longer applicable for miners in the Northern Data pods or Strongboxes, and the Company now receives 100% of the profits generated by Bitcoin miners in the Northern Data pods and Strongboxes. At the end of the two-year term of the Settlement Agreement, the Company has the option, but not the obligation, to purchase the Northern Data pods and Strongboxes for an amount between $2 million and $6 million based on the prevailing hash price at the time, net of a maximum of $1.5 million of expenditures that the Company has the option to use to upgrade the Northern Data pods throughout the two-year term. Pursuant to the Settlement Agreement, the Company will pay Northern Data an aggregate amount of $4.5 million as follows: (i) $2.5 million to Northern Data not later than October 3, 2022, which amount was paid to Northern Data in full on October, 3, 2022; (ii) $1.0 million to Northern Data not later than October 31, 2022, which amount was paid to Northern Data in full on October 31, 2022; and (iii) $1.0 million to Northern Data not later than November 30, 2022, which amount was paid to Northern Data in full on November 30, 2022. The Company recorded the settlement costs of $4.5 million in September 2022, partially offset by the elimination of approximately $2.6 million of payables to Northern Data. The net impact of $1.9 million was recorded as operations and maintenance expense on the consolidated statement of operations for the year ended December 31, 2022.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following as of:


	Useful Lives (Years)	December 31, 2022		December 31, 2021
Electric plant	10 - 60	$	66,295,809	$	66,153,985
Strongboxes and power transformers	8 - 30	52,318,704		7,489,472
Machinery and equipment	5 - 20	18,131,977		12,015,811
Rolling stock	5 - 7	261,000		261,000
Cryptocurrency machines and powering supplies	2 - 3	81,945,396		78,505,675
Computer hardware and software	2 - 5	17,196		56,620
Vehicles and trailers	2 - 7	659,133		155,564
Construction in progress	Not Depreciable	19,553,826		36,067,776
Asset retirement cost	10 - 30	580,452		580,452
		239,763,493		201,286,355
Accumulated depreciation and amortization		(72,558,812)		(34,629,200)
Property, plant, and equipment, net		$	167,204,681	$	166,657,155

Construction in progress consists of various projects to build out the cryptocurrency machine power infrastructure and is not depreciable until the asset is considered in service and successfully powers and runs the attached cryptocurrency machines. Completion of these projects will have various rollouts of energized transformed containers and are designed to calibrate power from the plant to the container that houses multiple cryptocurrency machines. Currently, the balance of $19,553,826 as of December 31, 2022, represents open contracts for future projects.

Depreciation and amortization expense charged to operations was $47,235,344 and $7,607,721 for the years ended December 31, 2022, and 2021, respectively, including depreciation of assets under finance leases of $406,411 and $290,805 for the years ended December 31, 2022, and 2021, respectively. As a result of impairment tests performed on the underlying asset groups throughout 2022, in accordance with ASC 360, Property, Plant and Equipment, the Company recognized impairments on miner assets of $40,683,112 for the year ended December 31, 2022.

The gross value of assets under finance leases and the related accumulated amortization approximated $2,890,665 and 1,758,629 as of December 31, 2022, respectively, and $2,108,280 and $1,352,218 as of December 31, 2021, respectively.

OPERATING LEASE ROU ASSETS AND LIABILITIES - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Operating lease, right of use asset, accumulated amortization	$ 464,845
Weighted-average remaining lease term	2 years 9 months 3 days
Weighted average discount rate	7.80%
Cash paid for amounts included in the measurement of operating lease liabilities	$ 712,143

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Additionally, since there are no differences between net income (loss) and comprehensive income (loss), all references to comprehensive income (loss) have been excluded from the consolidated financial statements.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and cash equivalents consist of short-term, highly-liquid investments with original maturities of three months or less. The Company maintains its cash in non-interest bearing accounts that are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company’s deposits may, from time to time, exceed the $250,000 limit; however, management believes that there is no unusual risk present, as the Company places its cash with financial institutions that management considers to be of high quality. As of December 31, 2022, cash and cash equivalents includes $900,000 of restricted cash, which represents a continuous bond in place of $400,000 to mitigate fees charged by customs brokerage companies associated with importing miners and a $500,000 letter of credit required to finance the Company's director and officer insurance policy.
Digital Currencies	Digital currencies are included in the consolidated balance sheets as current assets and are considered an intangible asset with an indefinite useful life. Digital currencies are recorded at cost less any impairment. Currently, Bitcoin is the only cryptocurrency the Company mines or holds in material amounts.Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. However, in most cases, the Company’s qualitative assessment indicates impairment when the quoted price of the cryptocurrency subsequently falls below its carrying amount, and the Company is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted.
Accounts Receivable	Accounts receivable are stated at the amount management expects to collect from balances outstanding at period end. An allowance for doubtful accounts is provided when necessary and is based upon management’s evaluation of outstanding accounts receivable at period end. The potential risk is limited to the amount recorded in the consolidated financial statements.
Inventory	Waste coal, fuel oil and limestone are valued at the lower of average cost or net realizable value and includes all related transportation and handling costs. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and unusable inventory and records necessary provisions to reduce such inventories to net realizable value.
Derivative Contracts	In accordance with guidance on accounting for derivative instruments and hedging activities, all derivatives should be recognized at fair value. Derivatives or any portion thereof, that are not designated as, and effective as, hedges must be adjusted to fair value through earnings. Derivative contracts are classified as either assets or liabilities on the consolidated balance sheets. Certain contracts that require physical delivery may qualify for and be designated as normal purchases and normal sales. Such contracts are accounted for on an accrual basis. The Company uses derivative instruments to mitigate its exposure to various energy commodity market risks. The Company does not enter into any derivative contracts or similar arrangements for speculative or trading purposes. The Company will, at times, sell its forward unhedged electricity capacity to stabilize its future operating margins. As of December 31, 2022, and 2021, there were no open energy commodity derivatives outstanding. The Company also uses derivative instruments to mitigate the risks of Bitcoin market pricing volatility. The Company entered into a variable prepaid forward sale contract that mitigated Bitcoin market pricing volatility risks between a low and high collar of Bitcoin market prices during the contract term. This contract settled in September 2022. The contract met the definition of a derivative transaction pursuant to guidance under ASC 815, Derivatives and Hedging, and was considered a compound derivative instrument which was required to be presented at fair value subject to remeasurement each reporting period. The changes in fair value were recorded as changes in fair value of forward sale derivative in the consolidated statements of operations.
Fair Value Measurements	The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities; Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
Property, Equipment and Bitcoin Mining Rigs	Property, plant and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance and repairs are charged to expenses as incurred. The Company records all assets associated with the cryptocurrency mining operations at cost. These assets are comprised of storage trailers and the related electrical components. When property, plant and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the consolidated statements of operations. Depreciation is recognized over the remaining estimated useful lives (“EUL”) of the related assets using the straight-line method. The Company’s depreciation is based on its Facility being considered a single property unit. Certain components of the Facility may require replacement or overhaul several times over its estimated life. Costs associated with overhauls are recorded as an expense in the period incurred. However, in instances where a replacement of a Facility component is significant and the Company can reasonably estimate the original cost of the component being replaced, the Company will write-off the replaced component and capitalize the cost of the replacement. The component will be depreciated over the lesser of the EUL of the component or the remaining EUL of the Facility. In conjunction with ASC 360, Property, Plant, and Equipment, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of the long-lived asset or asset group to undiscounted future cash flows expected to be generated by the long-lived asset or asset group. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the asset is used, and the effects of obsolescence, demand, competition, and other economic factors. If such an asset or asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the long-lived asset or asset group exceeds its fair value. Based on the Company’s analysis, no impairment indicators existed as of December 31, 2021; however, impairment indicators existed throughout the current year and as of December 31, 2022, that resulted in impairments on miner assets of $40,683,112 for the year ended December 31, 2022. Management has assessed the basis of depreciation of the Company’s Bitcoin mining rigs used to verify digital currency transactions and generate digital currencies and believes they should be depreciated over a three-year period. The rate at which the Company generates digital assets and, therefore, consumes the economic benefits of its transaction verification servers, is influenced by a number of factors including the following: 1.The complexity of the transaction verification process which is driven by the algorithms contained within the Bitcoin open source software; 2.The general availability of appropriate computer processing capacity on a global basis (commonly referred to in the industry as hash rate capacity); and 3.Technological obsolescence reflecting rapid development in the transaction verification server industry such that more recently developed hardware is more economically efficient to run in terms of digital assets generated as a function of operating costs, primarily power costs (i.e., the speed of hardware evolution in the industry is such that later hardware models generally have faster processing capacity combined with lower operating costs and a lower cost of purchase). The Company operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Management has determined that three years best reflects the current expected useful life of its Bitcoin miners. This assessment takes into consideration the availability of historical data and management’s expectations regarding the direction of the industry including potential changes in technology. Management reviews this estimate annually and will revise such estimate as and when data becomes available. To the extent that any of the assumptions underlying management’s estimate of useful life for its transaction verification servers are subject to revision in a future reporting period, either as a result of changes in circumstances or through the availability of greater quantities of data, the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets.
Asset Retirement Obligations	Asset retirement obligations, including those conditioned on future events, are recorded at fair value in the period in which they are incurred, if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset in the same period. In each subsequent period, the liability is accreted to its present value, and the capitalized cost is depreciated over the EUL of the long-lived asset. If the asset retirement obligation is settled for other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. The Company’s asset retirement obligation represents the cost the Company would incur to perform environmental clean-up or dismantle certain portions of the Facility.
Right-of-Use Assets	A right-of-use (“ROU”) asset represents the right to use an underlying asset for the term of the lease, and the corresponding liability represents an obligation to make periodic payments arising from the lease. A determination of whether an arrangement includes a lease is made at the inception of the arrangement. ROU assets and liabilities are recognized on the consolidated balance sheets, at the commencement date of the lease, in an amount equal to the present value of the lease payments over the term of the lease calculated using the interest rate implicit in the lease arrangement or, if not known, the Company's incremental borrowing rate. The present value of a ROU asset also includes any lease payments made prior to commencement of the lease and excludes any lease incentives received or to be received under the arrangement. The lease term includes options to extend or terminate the lease when it is reasonably certain that such options will be exercised. Operating leases that have original terms of less than 12 months, inclusive of options to extend that are reasonably certain to be exercised, are classified as short-term leases and are not recognized on the consolidated balance sheet. ROU assets are recorded as noncurrent assets on the consolidated balance sheets. The corresponding liabilities are recorded as an operating lease liability, either current or noncurrent, as applicable, on the consolidated balance sheets. Operating lease costs are recognized on a straight-line basis over the lease term within operations and maintenance or general and administrative expenses based on the use of the related ROU asset.
Revenue Recognition	The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of this revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: 1.Step 1: Identify the contract with the customer; 2.Step 2: Identify the performance obligations in the contract; 3.Step 3: Determine the transaction price; 4.Step 4: Allocate the transaction price to the performance obligations in the contract; and 5.Step 5: Recognize revenue when the company satisfies the performance obligations. In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. Per ASC 606, a performance obligation meets the definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: (1) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and (2) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts or both. When determining the transaction price, an entity must consider the effects of all of the following: •Variable consideration; •Constraining estimates of variable consideration; •The existence of a significant financing component in the contract; •Non-cash consideration; and •Consideration payable to a customer. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the Financial Accounting Standards Board (the "FASB"), the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial statements. Fair value of the digital asset awards received is determined using the quoted price of the related cryptocurrency at the time of receipt. The Company’s policies with respect to its revenue streams are detailed below. Energy Revenue The Company operates as a market participant through PJM Interconnection, a Regional Transmission Organization (“RTO”) that coordinates the movement of wholesale electricity. The Company sells energy in the wholesale generation market in the PJM RTO. Energy revenues are delivered as a series of distinct units that are substantially the same and have the same pattern of transfer to the customer over time and are, therefore, accounted for as a distinct performance obligation. Energy revenue is recognized over time as energy volumes are generated and delivered to the RTO (which is contemporaneous with generation), using the output method for measuring progress of satisfaction of the performance obligation. The Company applies the invoice practical expedient in recognizing energy revenue. Under the invoice practical expedient, energy revenue is recognized based on the invoiced amount which is considered equal to the value provided to the customer for the Company’s performance obligation completed to date. Prior to June 2022, the Scrubgrass and Panther Creek Plants were committed as "capacity resources" through the annual Base Residual Auction ("BRA") process. In this process, a generator agrees to support the PJM capacity market, and if called upon, is required to deliver its power to the market and receive a capped selling price based on pricing published in the day ahead market. In return for this committed capacity that is deliverable on demand to support the reliability of the PJM grid, generators receive additional Capacity Revenue on a monthly basis. As the mining opportunity grew for Stronghold, being a capacity resource increasingly prevented the Company from being able to consistently power its mining operation when PJM called for the capacity. Beginning in June of 2022, Stronghold withdrew from its capacity commitment and both plants became "energy resources" able to sell power to the grid in the real-time, location marginal pricing, or "LMP," market or use that power in its data centers. Reactive energy power is provided to maintain a continuous voltage level. Revenue from reactive power is recognized ratably over time as the Company stands ready to provide it if called upon by the PJM RTO. Capacity Revenue Prior to June 2022, the Company provided capacity to a customer through participation in capacity auctions held by the PJM RTO. Capacity revenues are a series of distinct performance obligations that are substantially the same and have the same pattern of transfer to the customer over time and are, therefore, accounted for as a distinct performance obligation. The transaction price for capacity is market-based and constitutes the standalone selling price. As capacity represents the Company’s stand-ready obligation, capacity revenue is recognized as the performance obligation is satisfied ratably over time, on a monthly basis, since the Company stands ready equally throughout the period to deliver power to the PJM RTO if called upon. The Company applies the invoice practical expedient in recognizing capacity revenue. Under the invoice practical expedient, capacity revenue is recognized based on the invoiced amount which is considered equal to the value provided to the customer for the Company’s performance obligation completed to date. Penalties may be assessed by the PJM RTO against generation facilities if the facility is not available during the capacity period. The penalties assessed by the PJM RTO, if any, are recorded as a reduction to capacity revenue when incurred. Bitcoin Mining The Company has entered into digital asset mining pools by executing contracts, as amended from time to time, with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party, and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed cryptocurrency award the mining pool operator receives (less digital asset transaction fees to the mining pool operator which are recorded as a reduction to cryptocurrency mining revenues), for successfully adding a block to the blockchain. The terms of the agreement provide that neither party can dispute settlement terms after thirty-five days following settlement. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing cryptocurrency mining computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators. The transaction consideration the Company receives, if any, is non-cash consideration, which the Company measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted price of the related cryptocurrency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial statements. Mining Hosting The Company has entered into customer hosting contracts whereby the Company provides electrical power to cryptocurrency mining customers, and the customers pay a stated amount per MWh (“Contract Capacity”). This amount is paid monthly in advance. Amounts used in excess of the Contract Capacity are billed based upon calculated formulas as contained in the contracts. If any shortfalls occur to due to outages, make-whole payment provisions contained in the contracts are used to offset the billings to the customer which prevented them from cryptocurrency mining. Advanced payments and customer deposits are recorded as contract liabilities in the consolidated balance sheets.
Waste Coal Tax Credits	Waste coal tax credits are issued by the Commonwealth of Pennsylvania. Facilities that generate electricity by using coal refuse for power generation, control acid gases for emission control and use the ash produced to reclaim mining-affected sites are eligible for such credits. Proceeds related to these credits are recorded upon cash receipt and accounted for as a reduction to fuel costs within operating expenses. For the years ended December 31, 2022, and 2021, waste coal tax credits reduced fuel expenses in the consolidated statements of operations by $1,836,823 and $53,443, respectively. Renewable Energy Credits (“RECs”) The Company uses coal refuse, which is classified as a Tier II Alternative Energy Source under Pennsylvania law, to produce energy to sell to the open market (“the grid”). A third party acts as the benefactor, on behalf of the Company, in the open market and is invoiced as RECs are realized. These credits are recognized as a contra-expense within operating expenses to offset the fuel costs incurred to produce this refuse.
Waste Ash Sales	The Company sells fly ash and scrubber material collected, which are by-products from its coal refuse reclamation used as fuel.
Stock Based Compensation	For equity-classified awards, compensation expense is recognized over the requisite service period based on the computed fair value on the grant date of the award. Equity-classified awards include the issuance of stock options, restricted stock units (“RSUs”) and performance share units ("PSUs").
Notes Payable	The Company records notes payable net of any discounts or premiums. Discounts and premiums are amortized as interest expense or income over the life of the note in such a way as to result in a constant rate of interest when applied to the amount outstanding at the beginning of any given period.
Warrants	Accounting for warrants includes an initial assessment of whether the warrants qualify as debt or equity. For warrants that meet the definition of debt instruments, the Company records the warrant liabilities at fair value as of the balance sheet date and recognizes changes in the balances, over the comparative periods of either the issuance date or the last reporting date, as part of changes in fair value of warrant liabilities within other income (expense). For warrants that meet the definition of equity instruments, the Company records the warrants at fair value as of the measurement date within stockholders' equity (deficit).
Segment Information	Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”). The role of the CODM is to make decisions about allocating resources and assessing performance. The Company’s operations are based on its Energy Operations and Cryptocurrency Operations and, therefore, the Company has concluded that its business operates in two operating segments. The CODM reviews financial information presented on each of these two operating segments for purposes of allocating resources and evaluating financial performance. The Company’s chief executive officer has been identified as its CODM. The Company's two operating segments are also its reportable segments: Energy Operations and Cryptocurrency Operations.
Common Stock - Class V	The Company accounts for the 45.1% interest represented by the Class V common stock outside of permanent equity as a result of certain redemption rights held by the holders that are outside the control of the Company. As such, the Company adjusts the Common Stock – Class V to its maximum redemption amount at the balance sheet date, if higher than the carrying amount. The redemption amount is based on a third-party valuation methodology of the Company’s Class A common stock at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to accumulated deficit. For each share of Class V common stock outstanding, there is a corresponding outstanding Class A common unit of Stronghold LLC. The redemption of any share of Class V common stock would be accompanied by a concurrent redemption of the corresponding Class A common unit of Stronghold LLC, such that both the share of Class V common stock and the corresponding Class A common unit of Stronghold LLC are redeemed as a combined unit in exchange for either a single share of Class A common stock or cash of equivalent value based on the fair value of the Class A common stock at the time of the redemption. For accounting purposes, the value of the Class A common units of Stronghold LLC is attributed to the corresponding shares of Class V common stock on the consolidated balance sheet as of December 31, 2022.
Net Income (Loss) Per Share	Basic earnings (loss) per share of common stock (“EPS”) is computed by dividing net income (loss) by the weighted average number of Class A shares of common stock outstanding or shares subject to exercise for a nominal value during the period. Diluted EPS reflects the potential dilution that could occur if securities, or other contracts to issue common stock, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.
Income Taxes	Reorganization Upon completion of the Reorganization, the Company is organized as an “Up-C” structure in which substantially all of the assets and business of the consolidated Company are held by Stronghold Inc. through its subsidiaries, and the Company’s direct assets largely consist of cash and investments in subsidiaries. For income tax purposes, the portion of the Company’s earnings allocable to Stronghold Inc. is subject to corporate income tax rates at the federal and state levels. Therefore, the income taxes recorded prior to the Reorganization are not representative of the income taxes after the Reorganization. The Company accounts for income taxes under the asset and liability method, in which deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for operating loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in operations in the period that includes the enactment date. A valuation allowance is required when it is "more likely than not" that deferred income tax assets will not be realized after considering all positive and negative evidence available. Based on the Company’s evaluation and application of ASC 740, Income Taxes (“ASC 740”), the Company has determined that its deferred income tax assets are not "more likely than not" to be realized, and therefore, as of December 31, 2022, the Company has recorded a valuation allowance against the net deferred income tax assets of the Company. Factors contributing to this assessment included the Company’s cumulative and current losses, as well as the evaluation of other sources of income as outlined in ASC 740 and potential limitations imposed by Internal Revenue Code ("IRC") Section 382 on the utilization of tax losses. The accounting for deferred income tax assets and liabilities is often based on assumptions that are subject to significant judgment by management. These assumptions are reviewed and adjusted as facts and circumstances change. The Company continues to evaluate the likelihood of the realizability of its deferred income tax assets, and while the valuation allowance remains in place, the Company expects to record no deferred income tax expense or benefit. Material changes to the Company's income tax accruals may occur in the future based on the potential for income tax audits, changes in legislation or resolution of pending matters. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be "more likely than not" to be sustained upon examination by taxing authorities. Based on its evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company's consolidated financial statements. The basis of tax positions applied to the Company's tax provisions substantially comply with all applicable federal and state regulations. The Company acknowledges the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to the Company's provision or benefit for income taxes in the period in which a final determination is made. As of December 31, 2022, the Company's tax years ended December 31, 2018, through the current year are open for potential examination by taxing authorities. Certain of Stronghold Inc.’s subsidiaries are structured as flow-through entities, and therefore, the taxable income or loss of such subsidiaries is included in the income tax returns of the partners, including Stronghold Inc. Application of ASC 740 to these entities results in no recognition of federal or state income taxes at the entity level. The portion of such subsidiaries' activities that are allocable to the Company will increase the Company’s taxable income or loss and be accounted for under ASC 740 by the Company. Prior to the Reorganization Scrubgrass and Stronghold LLC were structured as a limited partnership and limited liability company, respectively; therefore, the taxable income or loss of the Company is included in the income tax returns of the individual partners. Accordingly, no recognition has been given to federal or state income taxes in the accompanying consolidated financial statements. Two of Scrubgrass' subsidiaries, Clearfield and Leesburg, are corporations for federal and state income tax purposes. Income taxes attributable to Clearfield and Leesburg are provided based on the asset and liability method of accounting pursuant to ASC 740, both prior to and subsequent to the Reorganization. Under this method, deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. Clearfield and Leesburg have not recorded any temporary differences resulting in either a deferred income tax asset or liability as of December 31, 2022, or 2021.
Recently Implemented Accounting Pronouncements and Recently Issued Accounting Standards	As an “emerging growth company” (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. We have elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In February 2016, the FASB issued ASU 2016-02, Leases (“Topic 842”), which supersedes ASC Topic 840, Leases. Topic 842 requires lessees to recognize a lease liability and a lease asset on its balance sheet for all leases, including operating leases, with a term greater than 12 months. Topic 842 also expands the required quantitative and qualitative disclosures surrounding leases. The new guidance has been applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Topic 842 also provided an election for practical expedients which permits an entity (i) not to reassess whether any expired or existing contracts contained leases; (ii) to carry forward the existing lease classification; (iii) not to reassess initial direct costs associated with existing leases; (iv) not to separate non-lease components from lease components and instead accounted for all components as a single lease component; (v) and not to apply the provisions of Topic 842 to short-term leases. An operating lease ROU asset and operating lease liability equal to the present value of lease payments of $1,871,241 was recorded as of January 1, 2022. Refer to Note 17 – Operating Lease ROU Assets And Liabilities for the required disclosures. In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), to simplify the accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 became effective on January 1, 2022. The Company adopted ASU 2020-06 effective January 1, 2022, but the adoption of ASU 2020-06 did not have an impact on the Company’s consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, to clarify the accounting for modifications or exchanges of equity-classified warrants. This ASU became effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The FASB issued ASU 2021-04 to establish a principles-based recognition framework according to the substance of the modification transaction. The framework applies to freestanding written call options, such as warrants, that were and remain equity-classified by the issuer after the modification and are not in the scope of other guidance. For example, the framework does not apply to warrants that are modified to compensate for goods or services within the scope of Topic 718. The framework applies regardless of whether the modification is through an amendment to the existing terms or issuance of a replacement warrant. Accordingly, the provisions introduced under ASU 2021-04 were applicable to the Company during the year ending December 31, 2022, and specifically to the amended May 2022 Warrants.In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, which adds a new impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses at the initial recognition of an in-scope financial instrument and applies it to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. Since the Company meets the definition of a Smaller Reporting Company, as defined by the SEC, the new guidance becomes effective for fiscal years beginning after December 15, 2022. The Company does not expect the new guidance to have a significant impact on its consolidated financial statements.

PRIVATE PLACEMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Black Scholes Input Assumptions

The fair value of the warrant liabilities was estimated as of December 31, 2022, using a Black-Scholes model with significant inputs as follows:


	December 31, 2022
Expected volatility	130.9		%
Expected life (in years)	5.5
Risk-free interest rate	4.0		%
Expected dividend yield	0		%
Fair value	$	2,131,959

NONCONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2022

Noncontrolling Interest [Abstract]

NONCONTROLLING INTERESTS

NOTE 15 – NONCONTROLLING INTERESTS

The Company is the sole managing member of Stronghold LLC and, as a result, consolidates the financial results of Stronghold LLC and reports a noncontrolling interest representing the common units of Stronghold LLC held by Q Power. Changes in the Company's ownership interest in Stronghold LLC, while the Company retains its controlling interest, are accounted for as redeemable common stock transactions. As such, future redemptions or direct exchanges of common units of Stronghold LLC by the continuing equity owners will result in changes to the amount recorded as noncontrolling

interest. Refer to Note 14 – Redeemable Common Stock, which describes the redemption rights of the noncontrolling interest.

Class V common stock represented 45.1% and 56.1% ownership of Stronghold LLC, as of December 31, 2022, and 2021, respectively, granting the owners of Q Power economic rights and, as a holder, one vote on all matters to be voted on by our stockholders generally, and a redemption right into Class A shares. During the year ended December 31, 2022, 1,000,000 shares of Class V common stock held by Q Power were redeemed into Class A shares of common stock.

The following summarizes the redeemable common stock adjustments pertaining to the noncontrolling interest from April 1, 2021, through December 31, 2022:


	Class V Common Stock Outstanding	Fair Value Price		Temporary Equity Adjustments
Balance - April 1, 2021 (1)				$	(2,877,584)
Net losses for the three months ended June 30, 2021				(2,235,219)
Maximum redemption right valuation (2)	27,057,600	$	6.39	172,774,052
Balance - June 30, 2021				$	167,661,249
Net losses for the three months ended September 30, 2021				(4,328,460)
Adjustment of mezzanine equity to redemption amount (3)	27,057,600	$	9.33	79,669,600
Balance - September 30, 2021				$	243,002,389
Net losses for the three months ended December 31, 2021				(8,594,196)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	11.99	66,644,424
Balance - December 31, 2021				$	301,052,617
Net losses for the three months ended March 31, 2022				(18,125,837)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	7.72	(110,222,560)
Balance - March 31, 2022				$	172,704,220
Net losses for the three months ended June 30, 2022				(22,576,255)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	1.75	(102,888,062)
Balance - June 30, 2022				$	47,239,903
Net losses for the three months ended September 30, 2022				(42,203,141)
Adjustment of temporary equity to redemption amount (3)	27,057,600	$	1.09	24,396,766
Balance - September 30, 2022				$	29,433,528
Net losses for the three months ended December 31, 2022				(18,865,180)
Adjustment of temporary equity to redemption amount (3)	26,057,600	$	0.45	1,186,239
Balance - December 31, 2022				$	11,754,587

(1) As of the date of reorganization - refer to Note 1 – Business Combinations.
(2) Temporary equity adjustment based on Class V common stock outstanding at issuance price as of April 1, 2021.
(3) Temporary equity adjustment based on Class V common stock outstanding at fair value price at each quarter end, using a 10-day variable weighted average price ("VWAP") of trading dates including the closing date.

Common Units

The Company is the sole managing member of Stronghold LLC and, as a result, consolidates the financial results of Stronghold LLC and reports a noncontrolling interest representing the common units of Stronghold LLC held by Olympus Power, LLC, plus a corresponding number of Class V vote-only shares of common stock. Olympus Power, LLC can exchange these common units, along with corresponding shares of Class V common stock, for shares of Class A common stock on a one-for-one basis. Because of the Class V voting rights, the Company has assessed the exchange right as a “Redemption Right” to cause Stronghold LLC to acquire all or a portion of its Stronghold LLC Units for, at Stronghold LLC’s election, one share of Stronghold Inc.’s Class A common stock at a redemption ratio of one share of Class A common stock for each Stronghold LLC Unit.

Common units represented 0% and 2.4% ownership of Stronghold LLC as of December 31, 2022, and 2021, respectively, where the original owners of Olympus Power, LLC had economic rights and, as a holder, one vote on all matters to be voted on by our stockholders generally, and a redemption right into Class A shares. During the year ended December 31, 2022, all 1,152,000 of common units held by Olympus Power, LLC were redeemed into Class A shares of common stock.

The following summarizes the permanent equity adjustments pertaining to the noncontrolling interest from November 2, 2021 (date of issuance), through December 31, 2022:


	Permanent Equity Adjustments
Balance - November 2, 2021 (1)	$	38,315,520
Net loss	(645,359)
Balance - December 31, 2021	$	37,670,161
Net loss	(4,140,324)
Redemption of Series A convertible preferred shares	(33,529,837)
Balance - December 31, 2022	$	—

(1) As of November 2, 2021, the date of issuance, 1,152,000 of Series A Preferred units outstanding at $33.26 per public trading share price (Nasdaq closing price).

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Reportable segment results for the years ended December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021

OPERATING REVENUES:
Energy Operations	$	46,809,665	$	16,123,067
Cryptocurrency Operations	59,223,437		14,792,070
Total operating revenues	$	106,033,102	$	30,915,137
NET OPERATING LOSS:
Energy Operations	$	(38,992,034)	$	(17,237,107)
Cryptocurrency Operations	(108,274,121)		(4,767,358)
Total net operating (loss) income	$	(147,266,155)	$	(22,004,465)
OTHER EXPENSE [A]	(47,905,812)		(5,250,864)
NET LOSS	$	(195,171,967)	$	(27,255,329)

DEPRECIATION AND AMORTIZATION:
Energy Operations	$	(5,189,071)	$	(1,305,402)
Cryptocurrency Operations	(42,046,273)		(6,302,319)
Total depreciation and amortization	$	(47,235,344)	$	(7,607,721)
INTEREST EXPENSE:
Energy Operations	$	(100,775)	$	(80,866)
Cryptocurrency Operations	(13,810,233)		(4,541,789)
Total interest expense	$	(13,911,008)	$	(4,622,655)
CAPITAL EXPENDITURES:
Energy Operations	$	1,735,392	$	48,384
Cryptocurrency Operations	79,295,111		168,385,858
Total capital expenditures	$	81,030,503	$	168,434,242

[A] The Company does not allocate other income (expense) for segment reporting purposes. Amount is shown as a reconciling item between net operating income/(losses) and consolidated income before taxes. Refer to the accompanying consolidated statements of operations for further details.


	December 31, 2022						December 31, 2021
	Energy Operations		Cryptocurrency Operations		Total		Energy Operations		Cryptocurrency Operations		Total
Cash and cash equivalents	$	693,805	$	12,602,898	$	13,296,703	$	714,019	$	31,076,096	$	31,790,115
Digital currencies	—		109,827		109,827		—		10,417,865		10,417,865
Accounts receivable	10,628,570		208,556		10,837,126		256,103		1,855,752		2,111,855
Due from related parties	73,122		—		73,122		—		—		—
Prepaid insurance	2,438,968		2,438,968		4,877,935		3,150,851		3,150,851		6,301,701
Inventory	4,471,657		—		4,471,657		3,372,254		—		3,372,254
Other current assets	—		1,975,300		1,975,300		—		661,640		661,640
Equipment deposits	—		10,081,307		10,081,307		—		130,999,398		130,999,398
Property, plant and equipment, net	45,645,205		121,559,476		167,204,681		49,009,509		117,647,646		166,657,155
Land	1,748,440		—		1,748,440		1,748,440		—		1,748,440
Road bond	211,958		—		211,958		211,958		—		211,958
Operating lease right-of-use assets	1,045,365		673,672		1,719,037		—		—		—
Security deposits	348,888		—		348,888		348,888		—		348,888
	$	67,305,978	$	149,650,004	$	216,955,981	$	58,812,022	$	295,809,248	$	354,621,269

OPERATING LEASE ROU ASSETS AND LIABILITIES - Current and Noncurrent Operating Lease Liabilities (Details) - USD ($)	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Leases [Abstract]
Current portion of operating lease liabilities	$ 593,063		$ 0
Long-term operating lease liabilities	1,230,001		$ 0
Total operating lease liabilities	$ 1,823,064	$ 1,871,241

SUPPLEMENTAL CASH AND NON-CASH INFORMATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Noncash or Part Noncash Acquisitions [Line Items]
Income tax payments	$ 0	$ 0
Interest payments	9,636,505	1,195,692
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Equipment financed with debt	0	45,793,381
Purchases of property, plant and equipment through finance leases	938,902	0
Purchases of property, plant and equipment included in accounts payable or accrued liabilities	6,614,671	0
Operating lease right-of-use assets exchanged for lease liabilities	630,831	0
Reclassifications from deposits to property, plant and equipment	63,363,287	0
McClymonds arbitration award - paid by Q Power	5,038,122	0
Convertible note payment via warrants	3,340,078	0
Return of miners to settle debt	39,008,651	0
Warrants - WhiteHawk	1,150,000	1,999,396
Warrants - convertible note	6,604,881	0
Warrants issued as part of stock registrations - B.Riley Warrants	0	780,472
Financed insurance premiums	5,484,449	6,890,509
Common Class A
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Stock issued	0	1,389,888
Series A
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Stock issued	0	5,000,000
Redeemable Convertible Preferred Stock Units, Series A
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Redemption of Series A convertible preferred shares	33,529,837	0
Stock issued	$ 0	$ 38,315,520

TAX RECEIVABLE AGREEMENT (Details)	Apr. 01, 2021
Income Tax Disclosure [Abstract]
Tax receivable agreement, percentage	85.00%

BUSINESS COMBINATIONS (Details)							12 Months Ended
BUSINESS COMBINATIONS (Details)	Oct. 19, 2021 USD ($) $ / shares	May 14, 2021 USD ($) shares	Apr. 01, 2021 USD ($) $ / shares shares	Mar. 31, 2021 a subsidiary	Sep. 24, 2020 owner	Feb. 12, 2020	Dec. 31, 2022 USD ($) subsidiary shares	Dec. 31, 2021 USD ($) shares
Preferred Units [Line Items]
Sale of stock (in USD per share) \| $ / shares	$ 19.00
Sale of stock, consideration received \| $	$ 131,500,000
Shares issued in business reorganization (in shares)			576,000
Payment for business reorganization \| $			$ 2,000,000				$ 0	$ 2,000,000
Consideration transferred \| $			7,000,000
Equity interest issued value \| $			$ 5,000,000
Issuance price (in USD per share) \| $ / shares			$ 8.68
Shares exchanged (in shares)			14,400
Common stock outstanding (in shares)							31,710,217	20,016,067
Series A \| Private Placement
Preferred Units [Line Items]
Stock issued and sold during period (in shares)			9,792,000
Sale of stock (in USD per share) \| $ / shares			$ 8.68
Sale of stock, consideration received \| $			$ 85,000,000
Payments of fees \| $			6,300,000
Payments of debt issuance costs \| $			$ 631,897
Series B \| Private Placement
Preferred Units [Line Items]
Stock issued and sold during period (in shares)		1,817,035
Sale of stock, consideration received \| $		$ 20,000,305
Payments of fees \| $		1,600,000
Payments of debt issuance costs \| $		$ 148,575
Stronghold LLC
Preferred Units [Line Items]
Shares exchanged in business reorganization (in shares)			14,400
Q Power LLC
Preferred Units [Line Items]
Shares exchanged (in shares)			14,400
Q Power LLC \| Common Stock - Class V
Preferred Units [Line Items]
Common stock outstanding (in shares)			27,057,600
Q Power LLC \| Common Class A
Preferred Units [Line Items]
Common stock outstanding (in shares)			14,400
Stronghold LLC
Preferred Units [Line Items]
Ownership percentage by noncontrolling owners			31.00%
Q Power LLC
Preferred Units [Line Items]
Ownership interest per member					50.00%
Number of owners \| owner					2
Q Power LLC \| Stronghold LLC
Preferred Units [Line Items]
Shares received in business reorganization (in shares)			27,072,000
Q Power LLC \| Scrubgrass LP
Preferred Units [Line Items]
Ownership interest (in percent)				70.00%
Q Power LLC \| Stronghold Inc.
Preferred Units [Line Items]
Common stock, ownership percentage			69.00%
Q Power LLC \| Stronghold LLC
Preferred Units [Line Items]
Ownership interest (in percent)			69.00%				45.10%	56.10%
Q Power LLC \| Stronghold Power LLC
Preferred Units [Line Items]
Ownership interest (in percent)						100.00%
Aspen Scrubgrass Participant LLC \| Scrubgrass LP
Preferred Units [Line Items]
Ownership interest (in percent)				30.00%
Stronghold Inc. \| Stronghold LLC \| Common Stock - Class V
Preferred Units [Line Items]
Shares exchanged in business reorganization (in shares)			27,072,000
Stronghold LLC
Preferred Units [Line Items]
Conversion ratio			100.00%
Stronghold LLC \| Stronghold Inc.
Preferred Units [Line Items]
Shares exchanged in business reorganization (in shares)			10,368,000
Preferred units outstanding (in shares)			10,368,000
Limited partners' capital units outstanding (in shares)			14,400
Stronghold LLC \| Q Power LLC
Preferred Units [Line Items]
Common unit outstanding (in shares)			27,057,600
Stronghold LLC \| Q Power LLC \| Common Stock - Class V
Preferred Units [Line Items]
Shares distributed in business reorganization (in shares)			27,072,000
Scrubgrass Generating Company, L.P.
Preferred Units [Line Items]
Number of subsidiaries \| subsidiary				2			2
Clearfield Properties, Inc.
Preferred Units [Line Items]
Area of land (in acres) \| a				175

PRIVATE PLACEMENTS - Narrative (Details)					12 Months Ended
PRIVATE PLACEMENTS - Narrative (Details)	Sep. 19, 2022 $ / shares shares	Sep. 13, 2022 USD ($)	Aug. 16, 2022 USD ($) day $ / shares shares	May 15, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Aug. 15, 2022 $ / shares	Oct. 22, 2021 $ / shares	Oct. 19, 2021 $ / shares
Debt Instrument [Line Items]
Warrants issued during period (in shares) \| shares				6,318,000
Warrant exercise price of warrants (in USD per share)				$ 2.50	$ 0.01
Proceeds from private placements, net of issuance costs paid in cash \| $				$ 27,000,000	$ 8,599,440	$ 96,786,629
Loss on debt extinguishment \| $					$ 40,517,707	$ 0
Purchase agreement, discount percentage			20.00%
Purchase agreement, consecutive trading days after payment (in days) \| day			20
Common stock, par value (in USD per share)	$ 0.0001				$ 0.0001	$ 0.0001		$ 0.0001	$ 0.0001
Sale of stock (in USD per share)									$ 19.00
Proceeds from issuance of common stock \| $		$ 9,000,000
May 2022 Warrants
Debt Instrument [Line Items]
Warrant exercise period				5 years
September 2022 Warrants
Debt Instrument [Line Items]
Warrants issued during period (in shares) \| shares	5,602,409
Warrant exercise price of warrants (in USD per share)	$ 1.75
Warrant exercise period		5 years 6 months
Pre-Funded Warrants
Debt Instrument [Line Items]
Warrants issued during period (in shares) \| shares	2,725,650
Warrant exercise price of warrants (in USD per share)	$ 0.0001
Warrant purchase price of warrants (in USD per share)	$ 1.60
Note Warrant
Debt Instrument [Line Items]
Stock issued and sold during period (in shares) \| shares			6,318,000
Share price (in USD per share)			$ 0.01				$ 2.50
Private Placement With Armistice Capital Master Fund Ltd.
Debt Instrument [Line Items]
Stock issued and sold during period (in shares) \| shares	2,274,350
Sale of stock (in USD per share)	$ 1.60
Private placement With Greg Beard, Co-Chairman And Chief Executive Officer
Debt Instrument [Line Items]
Stock issued and sold during period (in shares) \| shares	602,409
Sale of stock (in USD per share)	$ 1.66
Unsecured Convertible Promissory Notes \| Unsecured Debt
Debt Instrument [Line Items]
Debt face amount \| $			$ 11,250,000	$ 33,750,000
Interest rate				10.00%
Loss on debt extinguishment \| $			$ (13,380,511)

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Warrant Liabilities, Segments, Mezzanine Equity and Loss per Share (Details) - segment		12 Months Ended
	Apr. 01, 2021	Dec. 31, 2022	Dec. 31, 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of operating segments		2
Stronghold LLC \| Q Power LLC
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest (in percent)	69.00%	45.10%	56.10%

ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued legal and professional fees	$ 1,439,544	$ 1,457,727
Accrued interest	1,343,085	79,267
Accrued sales and use tax	5,150,659	2,609,664
Accrued miscellaneous expenses	959,960	907,299
Total accrued liabilities	$ 8,893,248	$ 5,053,957

ASPEN INTEREST (“OLYMPUS”) BUYOUT - Narrative (Details) - USD ($)		12 Months Ended
	Apr. 01, 2021	Dec. 31, 2022	Dec. 31, 2021
Business Reorganization [Abstract]
Shares issued in business reorganization (in shares)	576,000
Issuance price (in USD per share)	$ 8.68
Equity interest issued value	$ 5,000,000
Payment for business reorganization	2,000,000	$ 0	$ 2,000,000
Consideration transferred	$ 7,000,000

VARIABLE PREPAID FORWARD SALES CONTRACT DERIVATIVE	12 Months Ended
VARIABLE PREPAID FORWARD SALES CONTRACT DERIVATIVE	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
VARIABLE PREPAID FORWARD SALES CONTRACT DERIVATIVE	NOTE 25 – VARIABLE PREPAID FORWARD SALES CONTRACT DERIVATIVE On December 15, 2021, the Company entered into a Forward Sale with NYDIG Trading providing for the sale of 250 Bitcoin (the “Sold Bitcoin”) at a floor price of $28,000 per Bitcoin (such sale, the “Forward Sale”). Pursuant to the Forward Sale, NYDIG Trading paid the Company $7.0 million, an amount equal to the floor price per Bitcoin (the “Initial Sale Price”) on December 16, 2021, times the 250 Bitcoin provided for sale. On March 16, 2022, the Company executed additional option transactions. The net effect of those transactions was to adjust the capped final sale price to $50,000 from $85,500 per Bitcoin, resulting in $970,000 of proceeds to the Company. On July 27, 2022, the Company exited the Variable Prepaid Forward Sales Contract Derivative with NYDIG Trading. As a result, the Company delivered the restricted digital assets previously pledged as collateral to NYDIG Trading. In return, the Company received $220,000 of cash and was relieved of its derivative liability. For the years ended December 31, 2022, and 2021, the Company recognized a gain (loss) from changes in the fair value of the forward sale derivative of $3,435,639 and $(116,488), respectively. On September 24, 2022, the Forward Sale was settled and Sold Bitcoin was sold to NYDIG Trading at a price equal to the market price for Bitcoin on September 23, 2022, less the Initial Sale Price of $7.0 million, subject to a capped final sale price of $85,500 per Bitcoin. As a result of the embedded price floor and cap mechanisms, this transaction was considered a compound derivative instrument subject to fair value remeasurement each reporting period. To determine the fair value, the Company used a Black-Scholes option pricing model to assess the combined net value of the embedded call and put features. The Company did not formally designate this instrument as a hedge, and as such, changes in the fair value of the compound derivative instrument were recorded as "changes in fair value of forward sale derivative" within other income (expense) in the consolidated statements of operations.

EQUIPMENT DEPOSITS AND MINER SALES

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

EQUIPMENT DEPOSITS AND MINER SALES

NOTE 4 – EQUIPMENT DEPOSITS AND MINER SALES

Equipment deposits represent contractual agreements with vendors to deliver and install miners at future dates. The following details the vendor, miner model, miner count, and expected delivery month(s).

In March 2022, the Company evaluated the MinerVa Semiconductor Corp ("MinerVa") equipment deposits for impairment under the provisions of ASC 360, Property, Plant and Equipment. As a result of the evaluation, the Company determined an indicator for impairment was present under ASC 360-10-35-21. The Company undertook a test for recoverability under ASC 360-10-35-29 and a further fair value analysis in accordance with ASC 820, Fair Value Measurement. The difference between the fair value of the MinerVa equipment deposits and the carrying value resulted in the Company recording an impairment charge of $12,228,742 in the first quarter of 2022 and an additional $5,120,000 in the fourth quarter of 2022, as summarized in the table below.

The following table details the total equipment deposits of $10,081,307 as of December 31, 2022:


Vendor	Model	Count	Delivery Timeframe	Total Commitments		Unpaid		Transferred to PP&E [A]		Impairment		Sold		Equipment Deposits
MinerVa [B]	MinerVa MV7	15,000	Oct '21 - TBD	$	68,887,550	$	—	$	(32,756,302)	$	(17,348,742)	$	(8,701,199)	$	10,081,307
Cryptech	Bitmain Antminer S19j	2,400	Nov '21 - Oct '22	12,656,835		—		(12,656,835)		—				—
Northern Data	MicroBT WhatsMiner M30S & M30S+	9,900	Oct '21 - Jan '22	22,061,852		—		(22,061,852)		—				—
Bitmain Technologies Limited [C]	Bitmain Antminer S19j Pro	10,200	Apr '22 - Dec '22	60,814,500		(4,218,000)		(23,951,500)		—		(32,645,000)		—
Bitmain Technologies Limited [D]	Bitmain Antminer S19 XP	1,800	Jul '22 - Dec '22	19,530,000		(6,961,500)		—		—		(12,568,500)		—
Northern Data PA. LLC	MicroBT WhatsMiner M30S & M30S+	4,280	Jan '22 - Jun '22	11,340,374		—		(11,340,374)		—		—		—
Totals		43,580		$	195,291,111	$	(11,179,500)	$	(102,766,863)	$	(17,348,742)	$	(53,914,699)	$	10,081,307

[A] Miners that are delivered and physically placed in service are transferred to a fixed asset account at the respective unit price as defined in the agreement.

[B] Refer to Note 8 – Commitments And Contingencies for a $4,499,980 refund that reduced the total commitments to $68,887,550.

[C] The commitment for the outstanding unpaid balance was transferred upon the closing of the Asset Purchase Agreement described in Note 6 – Debt.

[D] The miner purchase contract was sold in May 2022 for $5,638,500, and a loss of $6,930,000 was recorded as a realized loss on sale of miner assets within the consolidated statement of operations for the year ended December 31, 2022. The commitment for the outstanding unpaid balance was transferred upon the closing of this sale.

Miner Sales

During the second quarter of 2022, the Company entered into multiple miner sales agreements with multiple buyers. The Company previously disclosed its effort to optimize its Bitcoin miner fleet and sold 3,425 miners (approximately 411 PH/s) with a historical carrying value of $21,857,028, or $50.70 per TH/s. The Company recognized a realized loss on sale of miner assets of $8,012,248 during the second quarter of 2022. The loss was recorded as a realized loss on sale of miner assets on the consolidated statement of operations. The various buyers took over the remaining installment payments upon transfer of the contract, relieving the Company of the outstanding purchase obligation.

During the third quarter of 2022, the Company consensually returned approximately 26,000 Bitcoin miners (approximately 18,700 of which were plugged in and operating prior to delivery) to NYDIG and BankProv, and the related debt was cancelled pursuant to the terms of the Asset Purchase Agreement. See Note 6 – Debt for further discussion of the Asset Purchase Agreement.

Bitmain Technologies Limited Purchase Agreement

On October 28, 2021, we entered into the first of two Non-Fixed Price Sales and Purchase Agreements with Bitmain (the “First Bitmain Agreement”). Under the First Bitmain Agreement, Stronghold purchased approximately 12,000 Bitmain Antminer S19j Pro miners, with hash rate capacity of 1.2 EH/s, to be delivered between April 2022 and September 2022, for an aggregate purchase price of $75,000,000. On August 16, 2022, Stronghold entered into the Asset Purchase Agreement and sold the miners associated with the First Bitmain Agreement to the Purchasers. Before selling these miners, the Company had paid approximately $57 million under the First Bitmain Agreement and had installed approximately 4,500 out of the 12,000 miners.

On November 16, 2021, the Company entered into a second Non-Fixed Price Sales and Purchase Agreement with Bitmain (the “Second Bitmain Agreement”). Under the Second Bitmain Agreement, Stronghold purchased approximately 1,800 Bitmain Antminer S19 XP miners, with hash rate capacity of approximately 0.3 EH/s, to be delivered between July 2022

and December 2022, for an aggregate purchase price of $19,350,000. On May 13, 2022, Stronghold entered into a purchase order to transfer the Second Bitmain Agreement to Cryptech Solutions, Inc. ("Cryptech") for a total value of $12,600,000, including a $5,638,500 payment to the Company along with a transfer of the responsibility of the future payments to Cryptech. Before transferring the Second Bitmain Agreement to Cryptech, Stronghold had paid approximately $13 million under the Second Bitmain Agreement and had received none of the miners.

Label	Element	Value
Limited Partners' Capital Account	us-gaap_LimitedPartnersCapitalAccount	$ (1,408,471)

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	12 Months Ended
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 47,235,344	$ 7,607,721
Depreciation under finance leases	406,411	290,805
Impairments on miner assets	40,683,112	0
Finance lease, gross	2,890,665	2,108,280
Finance lease, accumulated amortization	1,758,629	1,352,218
Property, Plant And Equipment, Excluding Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	239,763,493	201,286,355
Accumulated depreciation and amortization	(72,558,812)	(34,629,200)
Property, plant, and equipment, net	167,204,681	166,657,155
Electric plant
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 66,295,809	66,153,985
Electric plant \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	10 years
Electric plant \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	60 years
Strongboxes and power transformers
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 52,318,704	7,489,472
Strongboxes and power transformers \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	8 years
Strongboxes and power transformers \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	30 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 18,131,977	12,015,811
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	5 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	20 years
Rolling stock
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 261,000	261,000
Rolling stock \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	5 years
Rolling stock \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	7 years
Cryptocurrency machines and powering supplies
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 81,945,396	78,505,675
Cryptocurrency machines and powering supplies \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	2 years
Cryptocurrency machines and powering supplies \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	3 years
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 17,196	56,620
Computer hardware and software \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	2 years
Computer hardware and software \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	5 years
Vehicles and trailers
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 659,133	155,564
Vehicles and trailers \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	2 years
Vehicles and trailers \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 19,553,826	36,067,776
Asset retirement cost
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 580,452	$ 580,452
Asset retirement cost \| Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	10 years
Asset retirement cost \| Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	30 years

COMMITMENTS AND CONTINGENCIES (Details) terahash in Millions	Oct. 26, 2022 USD ($)	Jul. 18, 2022	May 09, 2022 USD ($)	Jun. 02, 2021 USD ($)	Apr. 02, 2021 USD ($) miner terahash	Mar. 31, 2020 USD ($)	Jan. 31, 2020 USD ($)	Nov. 30, 2019 USD ($)	Dec. 31, 2022 USD ($) miner	Mar. 31, 2022 USD ($) miner
Unrecorded Unconditional Purchase Obligation [Line Items]
Count (in miners) \| miner									43,580
Remaining commitment balance									$ 195,291,111
Unpaid amount									11,179,500
Impairment									$ 17,348,742
McClymonds Supply & Transit Company, Inc. and DTA, L.P. vs. Scrubgrass Generating Company, L.P. \| Scrubgrass Generating Company, L.P.
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages awarded			$ 5,000,000
Litigation settlement interest			$ 800,000
McClymonds Supply & Transit Company, Inc. and DTA, L.P. vs. Scrubgrass Generating Company, L.P. \| Pending Litigation \| McClymonds Supply and Transit Company, Inc.
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages sought							$ 5,042,350
McClymonds Supply & Transit Company, Inc. and DTA, L.P. vs. Scrubgrass Generating Company, L.P. \| Pending Litigation \| Scrubgrass Generating Company, L.P.
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages sought						$ 6,747,328
Allegheny Mineral Corporation v. Scrubgrass Generating Company, L.P., Butler County Court of Common Pleas, No. AD 19-11039 \| Pending Litigation \| Scrubgrass Generating Company, L.P.
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages sought								$ 1,300,000
Allegheny Mineral Corporation v. Scrubgrass Generating Company, L.P., Butler County Court of Common Pleas, No. AD 19-11039 \| Pending Litigation \| Allegheny Mineral Corporation
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages sought								$ 1,200,000
Allegheny Mineral Corporation v. Scrubgrass Generating Company, L.P., Butler County Court of Common Pleas, No. AD 19-11039 \| Settled Litigation \| Scrubgrass Generating Company, L.P.
Unrecorded Unconditional Purchase Obligation [Line Items]
Damages awarded	$ 300,000
Miner Equipment, MinerVa, MinerVA
Unrecorded Unconditional Purchase Obligation [Line Items]
Count (in miners) \| miner					15,000				15,000
Total terahash delivered by miner (in terahash) \| terahash					1.5
Price per miner					$ 4,892.5
Remaining commitment balance					$ 73,387,500				$ 68,887,550
Percentage of purchase price				20.00%	60.00%
Purchases				$ 14,677,500	$ 44,032,500
Unpaid amount									0
Number of miners delivered \| miner										3,200
Impairment									17,348,742	$ 12,228,742
Additional impairment									$ 5,120,000
Equivalent value of collateral exchanged \| miner									10,700
Resolution period		60 days

FINANCED INSURANCE PREMIUMS (Details) - USD ($)	Nov. 08, 2022	Oct. 20, 2022	Sep. 10, 2022	Apr. 29, 2022	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt, gross					$ 74,449,664	$ 64,178,492
Directors and Officers Liability Insurance
Debt Instrument [Line Items]
Prepaid insurance, renewal term		12 months
Prepaid insurance, premium		$ 5,484,449
Property and Casualty, Commercial Insurance
Debt Instrument [Line Items]
Prepaid insurance, premium			$ 367,493	$ 523,076
Commercial Premium Finance Agreement Due, Two \| Loans payable
Debt Instrument [Line Items]
Debt instrument term	9 months
Interest rate	9.46%
Down payment	$ 750,000
Long-term debt, gross	$ 4,734,449				4,208,399
Commercial Premium Finance Agreement Due, One \| Loans payable
Debt Instrument [Line Items]
Debt instrument term			11 months
Interest rate			7.46%
Long-term debt, gross					246,487
Commercial Premium Finance Agreement Due March 2023 \| Loans payable
Debt Instrument [Line Items]
Debt instrument term				11 months
Interest rate				5.99%
Down payment				$ 44,793
Long-term debt, gross				$ 478,283	$ 133,049

STOCK-BASED COMPENSATION - Nonvested Restricted Stock Activity (Details) - RSUs - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Outstanding, beginning balance (in shares)	60,737	0
Vested (in shares)	(319,959)	0
Granted (in shares)	1,687,111	60,737
Forfeited (in shares)	(8,358)	0
Outstanding, ending balance (in shares)	1,419,531	60,737
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in USD per share)	$ 11.10	$ 0
Vested (in USD per share)	5.36	0
Granted (in USD per share)	3.76	11.10
Forfeited (in USD per share)	3.88	0
Outstanding, ending balance (in USD per share)	$ 4.35	$ 11.10

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 21 – INCOME TAXES

Subsequent to the Company’s incorporation, the Company and its indirectly-owned corporate subsidiaries, Clearfield and Leesburg, provide for income taxes under the asset and liability method. Deferred income tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities – specifically for the Company and its investment in Stronghold LLC – using enacted income tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred income tax assets will not be realized.

Prior to the Reorganization, Scrubgrass and Stronghold Power were structured as a limited partnership and limited liability company, respectively. Therefore, any taxable income or loss was included in the income tax returns of the individual owners. Accordingly, no recognition has been given to federal or state income taxes in the Company’s financial statements for the periods prior to the Reorganization.

For the years ended December 31, 2022, and 2021, the Company’s total income tax provision (benefit) of $0 differed from amounts computed by applying the United States federal income tax rate to pre-tax loss for the period primarily due to the net losses attributable to noncontrolling interests and due to maintaining a valuation allowance on the Company’s deferred income tax assets.

The components of the provision for income taxes for the years ended December 31, 2022, and 2021, were as follows:


	Year ended December 31,
	2022		2021
Current income tax provision (benefit):
Federal	$	—	$	—
State	—		—
Total current income tax provision (benefit)	$	—	$	—
Deferred income tax provision (benefit):
Federal	$	—	$	—
State	—		—
Total deferred income tax provision (benefit)	$	—	$	—
Total income tax provision (benefit)	$	—	$	—

The provision for income taxes differs from the amounts computed by applying the United States federal income tax rate to pre-tax loss. A reconciliation of the statutory federal income tax amount to the recorded income tax provision (benefit) expense is detailed in the following table.


	Year ended December 31,
	2022		2021
Income tax expense (benefit) at 21% federal income tax rate	$	(40,986,113)	$	(5,723,619)
Income attributable to the pre-incorporation period	—		50,179
Income attributable to nontaxable noncontrolling interest	22,241,255		3,318,679
State income tax expense (benefit), net of federal tax effect	(3,495,720)		(752,955)
Change in valuation allowance	20,934,443		2,756,486
Change in state income tax rate	1,430,670		—
Other, net	(124,535)		351,230
Total income tax provision (benefit)	$	—	$	—

Significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2022, and 2021, were as follows:


	Year ended December 31,
	2022		2021
Net operating loss and other carryforwards	$	25,852,100	$	6,243,820
Investment in Stronghold LLC	15,068,075		3,999,780
Total deferred income tax assets	$	40,920,175	$	10,243,600
Valuation allowance	(40,920,175)		(10,243,600)
Net deferred income tax assets	$	—	$	—
Net deferred income tax assets (liabilities)	$	—	$	—

As of December 31, 2022, and 2021, the Company and its subsidiaries had no net deferred income tax assets or liabilities. Subsequent to the Company’s Reorganization in 2021, deferred taxes are provided on the difference between the Company’s basis for financial reporting purposes and basis for federal income tax purposes in its investment in Stronghold LLC.

On July 8, 2022, the state of Pennsylvania enacted HB 1342 (Act 53), which includes a gradual reduction to the state corporate income tax rate to 4.99% over the 2023 through 2031 period. The Company considered the impact of this legislation in the period of enactment and reduced the gross amount of its Pennsylvania deferred income tax assets to take into account the reduced statutory rate. There was no impact to deferred income tax expense or net deferred income tax assets due to the valuation allowance against the Company’s deferred income tax assets.

As of December 31, 2022, no deferred income tax asset or liability has been recorded with respect to the Company’s TRA with Q Power and other parties thereto because any basis-step generated by an exchange that triggers amounts potentially owed by the Company under the TRA (i.e., the redemption of Stronghold LLC units for shares of Class A common stock or cash) would be a component of a deferred income tax asset not more likely than not to be realized, as discussed further below. The Company has not yet realized cash tax savings with respect to basis step-ups resulting from any exchange, due to the Company’s estimated taxable losses.

As of December 31, 2022, the Company had federal net operating loss and interest expense carryforwards of approximately $113.8 million, which may be carried forward indefinitely to offset future taxable income, and state net operating loss carryforwards of approximately $43.2 million expiring in 2041 if not used. The Company incurred a tax net operating loss in 2022 due principally to Stronghold LLC’s tax deductions for accelerated depreciation, in addition to its pre-tax loss. As of December 31, 2022, the Company did not have any uncertain tax positions requiring recognition in its consolidated financial statements. The 2021 and 2022 tax years for the Company and the 2018 through 2022 tax years for Clearfield and Leesburg remain open to potential examination by tax authorities.

As of December 31, 2022, and 2021, the Company had a valuation allowance of approximately $40.9 million and $10.2 million, respectively, related to deferred income tax assets the Company does not believe are more likely than not to be realized. The determination to record a valuation allowance was based on management’s assessment of all available evidence, both positive and negative, supporting realizability of the Company’s net operating losses and other deferred income tax assets, as required by ASC 740. Factors contributing to this assessment included the Company’s cumulative and current losses, as well as the evaluation of other sources of income as outlined in ASC 740. In addition, as of December 31, 2022, the Company determined that it sustained an ownership change as defined by IRC Section 382, which subjects the Company’s pre-change net operating losses and other carryforwards to annual limitation. Generally, the amount of the limitation is equal to the value of the company's stock immediately prior to the ownership change multiplied by an interest rate, referred to as the long-term tax-exempt rate, periodically promulgated by the IRS. The Company estimates that the amount of its losses generated prior to the ownership change that may be used annually subsequent to the change is approximately $2.1 million. Such annual limit may significantly impact the timing of utilization of the Company’s federal and state losses and other carryforwards.

The Company continues to evaluate the likelihood of the utilization of its deferred income tax assets, and, while the valuation allowance remains in place, the Company expects to record no deferred income tax expense or benefit. In light of the criteria under ASC 740 for recognizing the tax benefit of deferred income tax assets, the Company maintained a valuation allowance against its federal and state deferred income tax assets as of December 31, 2022, and 2021

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

ACCRUED LIABILITIES

NOTE 23 – ACCRUED LIABILITIES

Other accrued liabilities consisted of the following as of December 31, 2022, and 2021:


	December 31, 2022		December 31, 2021
Accrued legal and professional fees	$	1,439,544	$	1,457,727


Accrued interest	1,343,085		79,267
Accrued sales and use tax	5,150,659		2,609,664

Other	959,960		907,299

Total accrued liabilities	$	8,893,248	$	5,053,957

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly in deciding how to allocate resources and assess performance. The Company's CEO is the chief operating decision maker. The Company functions in two operating segments, Energy Operations and Cryptocurrency Operations, about which separate financial information is available as follows:

Reportable segment results for the years ended December 31, 2022, and 2021, were as follows:


	December 31, 2022		December 31, 2021

OPERATING REVENUES:
Energy Operations	$	46,809,665	$	16,123,067
Cryptocurrency Operations	59,223,437		14,792,070
Total operating revenues	$	106,033,102	$	30,915,137
NET OPERATING LOSS:
Energy Operations	$	(38,992,034)	$	(17,237,107)
Cryptocurrency Operations	(108,274,121)		(4,767,358)
Total net operating (loss) income	$	(147,266,155)	$	(22,004,465)
OTHER EXPENSE [A]	(47,905,812)		(5,250,864)
NET LOSS	$	(195,171,967)	$	(27,255,329)

DEPRECIATION AND AMORTIZATION:
Energy Operations	$	(5,189,071)	$	(1,305,402)
Cryptocurrency Operations	(42,046,273)		(6,302,319)
Total depreciation and amortization	$	(47,235,344)	$	(7,607,721)
INTEREST EXPENSE:
Energy Operations	$	(100,775)	$	(80,866)
Cryptocurrency Operations	(13,810,233)		(4,541,789)
Total interest expense	$	(13,911,008)	$	(4,622,655)
CAPITAL EXPENDITURES:
Energy Operations	$	1,735,392	$	48,384
Cryptocurrency Operations	79,295,111		168,385,858
Total capital expenditures	$	81,030,503	$	168,434,242

Total assets by energy operations and cryptocurrency operations as of December 31, 2022, and 2021, are presented in the table below.


	December 31, 2022						December 31, 2021
	Energy Operations		Cryptocurrency Operations		Total		Energy Operations		Cryptocurrency Operations		Total
Cash and cash equivalents	$	693,805	$	12,602,898	$	13,296,703	$	714,019	$	31,076,096	$	31,790,115
Digital currencies	—		109,827		109,827		—		10,417,865		10,417,865
Accounts receivable	10,628,570		208,556		10,837,126		256,103		1,855,752		2,111,855
Due from related parties	73,122		—		73,122		—		—		—
Prepaid insurance	2,438,968		2,438,968		4,877,935		3,150,851		3,150,851		6,301,701
Inventory	4,471,657		—		4,471,657		3,372,254		—		3,372,254
Other current assets	—		1,975,300		1,975,300		—		661,640		661,640
Equipment deposits	—		10,081,307		10,081,307		—		130,999,398		130,999,398
Property, plant and equipment, net	45,645,205		121,559,476		167,204,681		49,009,509		117,647,646		166,657,155
Land	1,748,440		—		1,748,440		1,748,440		—		1,748,440
Road bond	211,958		—		211,958		211,958		—		211,958
Operating lease right-of-use assets	1,045,365		673,672		1,719,037		—		—		—
Security deposits	348,888		—		348,888		348,888		—		348,888
	$	67,305,978	$	149,650,004	$	216,955,981	$	58,812,022	$	295,809,248	$	354,621,269

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

SEGMENT REPORTING - Narrative (Details)	12 Months Ended
SEGMENT REPORTING - Narrative (Details)	Dec. 31, 2022 segment
Segment Reporting [Abstract]
Number of operating segments	2

WARRANTS - Narrative (Details) - USD ($)								3 Months Ended	12 Months Ended
WARRANTS - Narrative (Details) - USD ($)	Nov. 15, 2022	Aug. 16, 2022	May 15, 2022	Mar. 28, 2022	Jun. 30, 2021	May 14, 2021	Apr. 01, 2021	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Sep. 19, 2022	Aug. 15, 2022
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)			6,318,000
Warrant exercise price of warrants (in USD per share)			$ 2.50					$ 0.01	$ 0.01
Proceeds from private placements, net of issuance costs paid in cash			$ 27,000,000						$ 8,599,440	$ 96,786,629
Issued (in shares)	3,243,416								21,393,561	297,795
Exercised (in shares)								6,424,324	5,816,250	0
Common Class A
Class of Warrant or Right [Line Items]
Warrants term								5 years 6 months	5 years 6 months
Pre-Funded Warrants
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)											2,725,650
Warrant exercise price of warrants (in USD per share)											$ 0.0001
Warrant purchase price of warrants (in USD per share)											$ 1.60
Note Warrant
Class of Warrant or Right [Line Items]
Stock issued and sold during period (in shares)		6,318,000
Share price (in USD per share)		$ 0.01										$ 2.50
Note Warrant \| WhiteHawk Finance LLC \| Common Class A
Class of Warrant or Right [Line Items]
Stock issued and sold during period (in shares)				125,000	181,705
Private Placement \| Series A
Class of Warrant or Right [Line Items]
Stock issued and sold during period (in shares)							9,792,000
Private Placement \| Series B
Class of Warrant or Right [Line Items]
Stock issued and sold during period (in shares)						1,817,035
Private Placement \| B. Riley Securities, Inc. \| Series A
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)							97,920
Warrant exercise price of warrants (in USD per share)							$ 8.68
Warrants term							5 years
Private Placement \| B. Riley Securities, Inc. \| Series B
Class of Warrant or Right [Line Items]
Warrants issued during period (in shares)						18,170
Warrant exercise price of warrants (in USD per share)						$ 11.01
Warrants term						5 years
Unsecured Convertible Promissory Notes \| Unsecured Debt
Class of Warrant or Right [Line Items]
Debt face amount		$ 11,250,000	$ 33,750,000
Interest rate			10.00%
Loan For Equipment Due June 2023, One \| Loans payable
Class of Warrant or Right [Line Items]
Debt face amount					$ 40,000,000			$ 40,000,000	$ 40,000,000
Interest rate								10.00%	10.00%
Convertible Note Due May 2024 \| Loans payable
Class of Warrant or Right [Line Items]
Debt face amount				$ 25,000,000				$ 33,750,000	$ 33,750,000
Interest rate								10.00%	10.00%

PAYCHECK PROTECTION PROTECTION PROGRAM AND ECONOMIC INJURY DISASTER LOANS (Details) - USD ($)				1 Months Ended	12 Months Ended
	May 25, 2022	Jun. 08, 2021	Mar. 16, 2021	Jan. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Proceeds from issuance of debt					$ 152,358,118	$ 0
Round 2, Paycheck Protection Program, CARES Act \| Loans payable
Debt Instrument [Line Items]
Proceeds from issuance of debt			$ 841,670
Interest rate			1.00%
Forgiveness for loan	$ 841,670
Round 1, Paycheck Protection Program, CARES Act \| Loans payable
Debt Instrument [Line Items]
Forgiveness for loan				$ 638,800
Economic Injury Disaster Loan (“EIDL”) \| Loans payable
Debt Instrument [Line Items]
Repayment of debt		$ 150,000

PREPAID INSURANCE	12 Months Ended
PREPAID INSURANCE	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID INSURANCE	NOTE 22 – PREPAID INSURANCE As of December 31, 2022, and 2021, the Company had an unamortized prepaid insurance balance of $4,877,935 and $6,301,701, respectively. The unamortized balance as of December 31, 2022, consisted of $4,080,241 to cover directors and officers insurance, including corporate reimbursement ("D&O Policy"), and various commercial property and risk coverages totaling $797,694. Effective October 20, 2022, the D&O Policy was renewed for 12 months. Refer to Note 28 – Financed Insurance Premiums for disclosure of the annual premiums and financing details. The Company's commercial property and risk coverages vary in policy term expirations and are renewable on an annual basis.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Operations and maintenance

$ 106,033,102

$ 30,915,137

OPERATING EXPENSES:

Fuel

28,780,110

13,143,076

57,030,189

15,492,763

General and administrative

44,460,810

14,955,626

Impairments on digital currencies

8,339,660

1,870,274

Impairments on equipment deposits

17,348,742

Impairments on miner assets

40,683,112

Realized gain on sale of digital currencies

(1,102,220)

(149,858)

Loss on disposal of fixed assets

2,511,262

Realized loss on sale of miner assets

8,012,248

Depreciation and amortization

47,235,344

7,607,721

Total operating expenses

253,299,257

52,919,602

NET OPERATING LOSS

(147,266,155)

(22,004,465)

OTHER INCOME (EXPENSE):

Interest expense

(13,911,008)

(4,622,655)

Loss on debt extinguishment

(40,517,707)

Gain on extinguishment of PPP loan

841,670

638,800

Changes in fair value of warrant liabilities

4,226,171

(1,143,809)

Realized gain on sale of derivative contract

90,953

Changes in fair value of forward sale derivative

3,435,639

(116,488)

Changes in fair value of convertible note

(2,167,500)

Other

95,970

(6,712)

Total other income (expense)

(47,905,812)

(5,250,864)

NET LOSS

(195,171,967)

(27,255,329)

Net loss attributable to legacy partners

(195,171,967)

(27,255,329)

NET LOSS attributable to noncontrolling interest

(105,910,737)

$ (15,803,234)

NET LOSS attributable to Stronghold Digital Mining, Inc

$ (89,261,230)

NET LOSS attributable to Class A Common Shares

Basic (in USD per share)

^[1]

$ (3.45)

$ (2.03)

Diluted (in USD per share)

^[1]

$ (3.45)

$ (2.03)

Weighted average number of Class A common shares outstanding

Basic (in shares)

^[1]

25,849,048

5,518,752

Diluted (in shares)

^[1]

25,849,048

5,518,752

Cryptocurrency mining

$ 58,763,565

$ 12,494,581

Energy

41,194,237

11,870,817

Capacity

5,469,648

4,238,921

Cryptocurrency hosting

459,872

2,297,489

Other

Temporary Equity Disclosure [Abstract]

$ 145,780

$ 13,329

[1]

DEBT - Schedule of Debt (Details) - USD ($)	Dec. 31, 2022	Oct. 27, 2022	Mar. 28, 2022	Dec. 31, 2021	Jun. 30, 2021
Line of Credit Facility [Line Items]
Long-term debt, gross	$ 74,449,664			$ 64,178,492
Current portion of long-term debt, net of discounts and issuance fees	17,422,546			45,799,651
Long-term debt less current portions, deferred costs, & discounts	57,027,118			18,378,841
$66,076 loan, with interest at 5.55% due July 2021 \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 66,076
Interest rate	5.55%
Long-term debt, gross	$ 0			3,054
$75,000 loan, with interest at 12.67% due April 2021. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 75,000
Interest rate	12.67%
Long-term debt, gross	$ 0			7,312
$499,520 loan, with interest at 2.49% due December 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 499,520
Interest rate	2.49%
Long-term debt, gross	$ 124,023			232,337
$499,895 loan, with interest at 2.95% due July 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 499,895
Interest rate	2.95%
Long-term debt, gross	$ 121,470			246,720
$212,675 loan, with interest at 6.75% due October 2022. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 212,675
Interest rate	6.75%
Long-term debt, gross	$ 0			103,857
$517,465 loan, with interest at 4.78% due October 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 517,465
Interest rate	4.78%
Long-term debt, gross	$ 339,428			490,600
$585,476 loan, with interest at 4.99% due November, 2025. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 585,476
Interest rate	4.99%
Long-term debt, gross	$ 513,334			0
$431,825 loan, with interest at 7.60% due April 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 431,825
Interest rate	7.60%
Long-term debt, gross	$ 121,460			204,833
$40,000,000 loan, with interest at 10.00% due June 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 40,000,000				$ 40,000,000
Interest rate	10.00%
Long-term debt, gross	$ 0			28,149,998
Long-term debt, term	24 months
Amendment fee	$ 250,000
$25,000,000 loan, with interest at 10.00%, due March 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 25,000,000
Interest rate	10.00%
Long-term debt, gross	$ 0			0
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 58,149,411
Interest rate	10.00%
Long-term debt, gross	$ 56,114,249			0
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025. \| Loans payable \| Secured Debt
Line of Credit Facility [Line Items]
Debt face amount		$ 35,100,000
$58,149,411 loan, with interest at 10.00% plus SOFR, due October 2025. \| Loans payable \| Line of Credit
Line of Credit Facility [Line Items]
Debt face amount		$ 23,000,000
Closing fee percentage		3.00%
$10,641,362 loan, with interest at 10.00% due June 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 10,641,362
Interest rate	10.00%
Long-term debt, gross	$ 0			7,546,542
Long-term debt, term	24 months
$14,077,800 loan, with interest at 10.00% due June 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 14,077,800
Interest rate	10.00%
Long-term debt, gross	$ 0			9,982,551
Long-term debt, term	24 months
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 17,984,000
Interest rate	9.99%
Long-term debt, gross	$ 0			9,891,200
Long-term debt, term	24 months
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 17,984,000
Interest rate	9.99%
Long-term debt, gross	$ 0			7,319,488
Long-term debt, term	24 months
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 17,984,000
Interest rate	9.99%
Long-term debt, gross	$ 0			0
Long-term debt, term	24 months
$33,750,000 Convertible Note, with interest at 10.00% due May 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 33,750,000		$ 25,000,000
Interest rate	10.00%
Long-term debt, gross	$ 16,812,500			0
Long-term debt, term	24 months
Amendment fee	$ 275,414
Closing fee	500,000
$92,381 loan, with interest at 1.49% due April 2026. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 92,381
Interest rate	1.49%
Long-term debt, gross	$ 79,249			0
$64,136 loan, with interest at 11.85% due May 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 64,136
Interest rate	11.85%
Long-term debt, gross	$ 39,056			0
$196,909 loan, with interest at 6.49% due May 2024. \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount	$ 196,909
Interest rate	6.49%
Long-term debt, gross	$ 184,895			$ 0

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Net operating loss and other carryforwards	$ 25,852,100	$ 6,243,820
Investment in Stronghold LLC	15,068,075	3,999,780
Total deferred income tax assets	40,920,175	10,243,600
Valuation allowance	(40,920,175)	(10,243,600)
Net deferred income tax assets	0	0
Net deferred tax assets	0	0
Deferred tax liabilities	$ 0	$ 0

NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable, Property and Equipment, Bitcoin Mining Rigs, Impairment of Long-Lived Assets, Revenue Recognition, Waste Coal Tax Credits, Renewable Energy Credits and Waste Ash Sales (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Accounts receivable, allowance for credit loss, writeoff	$ 0	$ 244,924
Accounts receivable, allowance for credit loss	0	0
Impairments on miner assets	$ 40,683,112	0
Settlement terms dispute, term	35 days
Waste coal tax credits	$ 1,836,823	53,443
Renewable energy credits, utilized	9,960,655	1,736,071
Realized waste ash sales	$ 51,453	$ 0
Cryptocurrency machines
Property, Plant and Equipment [Line Items]
Useful life	3 years

REDEEMABLE COMMON STOCK (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Net Mezzanine Equity

The following is a summary of the Series A and Series B valuations and conversions to common equity:


	Series A		Series B
Proceeds	$	85,000,000	$	20,000,305
Transaction fees:
B. Riley Securities	(5,100,000)		(1,200,000)
Legal and filing fees	(1,226,990)		(408,997)
Debt issuance costs pertaining to stock registration warrants - refer to Note 13	(631,897)		(148,575)
Total net redeemable common stock	$	78,041,113	$	18,242,733
Conversion to common Class A shares	$	(78,041,113)	$	(18,242,733)
Remaining in net redeemable common stock	$	—	$	—

The Company recorded redeemable common stock as presented in the table below.



	Common Class V
	Shares	Amount
Balance - December 31, 2021	27,057,600	$	301,052,617
Net loss attributable to noncontrolling interest	—	(101,770,413)
Maximum redemption right valuation	—	(187,527,617)
Redemption of Class V shares	(1,000,000)	—
Balance - December 31, 2022	26,057,600	$	11,754,587

INVENTORY (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consisted of the following components as of:


	December 31, 2022		December 31, 2021

Waste coal	$	4,147,369	$	3,238,383
Fuel oil	143,592		94,913
Limestone	180,696		38,958
Inventory	$	4,471,657	$	3,372,254

ASPEN INTEREST (“OLYMPUS”) BUYOUT - Partners' Deficit of Aspen Interest (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
Increase (Decrease) in Partners' Capital [Roll Forward]
Limited partners, beginning balance	$ (1,336,784)
Net loss - three months ended March 31, 2021	$ (71,687)

RELATED-PARTY TRANSACTIONS - Amounts Due to Related Parties (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Due to related parties	$ 1,375,049	$ 1,430,660
Affiliated Entity \| Coal Valley Properties, LLC
Related Party Transaction [Line Items]
Due to related parties	134,452	134,452
Affiliated Entity \| Q Power LLC
Related Party Transaction [Line Items]
Due to related parties	500,000	500,000
Affiliated Entity \| Coal Valley Sales, LLC
Related Party Transaction [Line Items]
Due to related parties	0	202,334
Affiliated Entity \| Panther Creek Energy Services LLC
Related Party Transaction [Line Items]
Due to related parties	10,687	94,434
Affiliated Entity \| Panther Creek Fuel Services LLC
Related Party Transaction [Line Items]
Due to related parties	53,482	47,967
Affiliated Entity \| Northampton Generating Fuel Supply Company, Inc.
Related Party Transaction [Line Items]
Due to related parties	594,039	321,738
Affiliated Entity \| Olympus Power LLC and other subsidiaries
Related Party Transaction [Line Items]
Due to related parties	78,302	129,735
Affiliated Entity \| Scrubgrass Energy Services LLC
Related Party Transaction [Line Items]
Due to related parties	4,087	0
Affiliated Entity \| Scrubgrass Fuel Services LLC
Related Party Transaction [Line Items]
Due to related parties	$ 0	$ 0

INITIAL PUBLIC OFFERING	12 Months Ended
INITIAL PUBLIC OFFERING	Dec. 31, 2022
Equity [Abstract]
INITIAL PUBLIC OFFERING	NOTE 26 – INITIAL PUBLIC OFFERING On October 19, 2021, by unanimous written consent, the Board and a newly-formed Pricing Committee approved the issuance and sale of the Company's Class A common stock, par value $0.0001 per share, in an initial public offering (the "IPO") to be underwritten by a group of underwriters to be named in the underwriting agreement dated October 19, 2021, by and among the Company and B. Riley Securities, Inc. and Cowen and Company, LLC, as representatives of the other underwriters named therein (the "Underwriting Agreement"). The Board unanimously approved the issuance and sale by the Company in the IPO of up to 7,690,400 shares of Class A common stock (which included 6,687,305 firm shares and up to 1,003,095 shares of Class A common Stock that may be issued and sold to cover over allotments, if any) through the Underwriters, for a price to the public per share of $19.00, less underwriting discounts and commissions of $1.33 per share, as more fully set forth in the Underwriting Agreement. Total net proceeds raised, after deducting underwriting discounts and commissions and estimated offering expenses, were $131.5 million.

ASPEN INTEREST (“OLYMPUS”) BUYOUT

12 Months Ended

Dec. 31, 2022

Business Reorganization [Abstract]

ASPEN INTEREST (“OLYMPUS”) BUYOUT

NOTE 18 – ASPEN INTEREST ("OLYMPUS") BUYOUT

On April 1, 2021, the Company, using in part 576,000 shares of newly issued Series A Preferred Stock and in part proceeds from the Series A Private Placement, acquired the Aspen Interest.

The total consideration was a combination of the newly issued Series A Preferred Stock valued at the issuance price of $8.68 per share, or $5,000,000, plus an additional $2,000,000 in cash. A total of $7,000,000 was treated as a buyout of the Partners’ Deficits of the Limited Partner (i.e., Aspen Interest) as of April 1, 2021.

The following table details the Partners’ Deficit of the Aspen Interest as of April 1, 2021:


	Limited Partners
Balance - December 31, 2020	$	(1,336,784)
Net loss - three months ended March 31, 2021	(71,687)
Balance - April 1, 2021	$	(1,408,471)

WARRANTS (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Outstanding Warrants

The following table summarizes outstanding warrants as of December 31, 2022, and 2021, and activity for the years then ended.


			Number of Warrants
Outstanding as of January 1, 2021			—
Issued			297,795
Exercised			—
Outstanding as of December 31, 2021			297,795
Issued			21,393,561
Exercised			(5,816,250)
Outstanding as of December 31, 2022			15,875,106

DEBT - Narrative (Details)					3 Months Ended	12 Months Ended
DEBT - Narrative (Details)	Feb. 20, 2023 USD ($) $ / shares	Feb. 06, 2023 USD ($)	Oct. 27, 2022 USD ($) $ / shares shares	Aug. 16, 2022	Sep. 30, 2022 USD ($) tranche	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) $ / shares	Jul. 01, 2023 USD ($)	Mar. 31, 2023 shares	Dec. 30, 2022 $ / shares	Oct. 31, 2022 USD ($)	Sep. 19, 2022 $ / shares	May 15, 2022 $ / shares shares	Oct. 22, 2021 $ / shares	Oct. 19, 2021 $ / shares
Line of Credit Facility [Line Items]
Incurred loss					$ 19,475,514
Loss on debt extinguishment						$ 40,517,707	$ 0
Warrants issued during period (in shares) \| shares													6,318,000
Warrant exercise price of warrants (in USD per share) \| $ / shares						$ 0.01							$ 2.50
Preferred stock, par value (in dollars per share) \| $ / shares						0.0001	$ 0.0001
Common stock, par value (in USD per share) \| $ / shares						$ 0.0001	$ 0.0001					$ 0.0001		$ 0.0001	$ 0.0001
Series C Convertible Preferred Stock
Line of Credit Facility [Line Items]
Preferred stock, par value (in dollars per share) \| $ / shares										$ 0.0001
Subsequent Event
Line of Credit Facility [Line Items]
Warrants issued during period (in shares) \| shares									4,574,350
Subsequent Event \| Common Class A
Line of Credit Facility [Line Items]
Common stock, par value (in USD per share) \| $ / shares	$ 0.0001
Cryptocurrency machines
Line of Credit Facility [Line Items]
Inspection period of assets once delivered				14 days
Option to extend inspection period of assets once delivered (up to)				7 days
Impairment on assets held for sale					4,159,004
NYDIG Agreements \| Loans payable
Line of Credit Facility [Line Items]
Loss on debt extinguishment					$ 15,316,510
Number of tranches extinguished \| tranche					3
Number of tranches \| tranche					7
Number of tranches remaining \| tranche					4
Debt outstanding											$ 39,998,415
Loan Due October 2025 \| Loans payable
Line of Credit Facility [Line Items]
Loss on debt extinguishment						$ 7,661,682
Debt face amount						58,149,411
Minimum liquidity requirement			$ 7,500,000
Average daily minimum liquidity			$ 10,000,000
Minimum return on investment			20.00%
Warrants issued during period (in shares) \| shares			4,000,000
Warrant exercise price of warrants (in USD per share) \| $ / shares			$ 0.01
Write off of deferred debt issuance cost						2,796,084
Payment for debt extinguishment or debt prepayment cost						1,115,000
Loss on debt extinguishment related to recording new debt at fair value						$ 3,750,598
Interest rate						10.00%
Loan Due October 2025 \| Loans payable \| Subsequent Event
Line of Credit Facility [Line Items]
Maximum leverage ratio		4.00
Period of pause on triggered monthly debt repayments		5 months
Monthly prepayments, average daily cash percentage in excess of triggering amount		50.00%
Monthly prepayments, triggering daily cash balance amount (in excess)		$ 7,500,000
Loan Due October 2025 \| Loans payable \| Quarter Ending December 31, 2022
Line of Credit Facility [Line Items]
Maximum leverage ratio			7.5
Loan Due October 2025 \| Loans payable \| Quarter Ending March 31, 2023
Line of Credit Facility [Line Items]
Maximum leverage ratio			5.0
Loan Due October 2025 \| Loans payable \| Quarter Ending June 30, 2023
Line of Credit Facility [Line Items]
Maximum leverage ratio			4.0
Loan Due October 2025 \| Loans payable \| Each Quarter Thereafter June 30, 2023
Line of Credit Facility [Line Items]
Maximum leverage ratio			4.0
Loan Due October 2025 \| Loans payable \| Until March 1, 2024 \| Subsequent Event
Line of Credit Facility [Line Items]
Minimum liquidity requirement		2,500,000
Loan Due October 2025 \| Loans payable \| During The Period April 1, 2024 Through December 1, 2024 \| Subsequent Event
Line of Credit Facility [Line Items]
Minimum liquidity requirement		5,000,000
Loan Due October 2025 \| Loans payable \| From And After January 1, 2025 \| Subsequent Event
Line of Credit Facility [Line Items]
Minimum liquidity requirement		$ 7,500,000
Loan Due October 2025 \| Loans payable \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			10.00%
Reference rate			3.00%
Loan Due October 2025 \| Loans payable \| Fed Funds Effective Rate Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.50%
Loan Due October 2025 \| Loans payable \| Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Debt Instrument, Basis Spread On Variable Rate, One
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Loan Due October 2025 \| Loans payable \| Term Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Debt Instrument, Basis Spread On Variable Rate, Two
Line of Credit Facility [Line Items]
Basis spread on variable rate			9.00%
Loan Due October 2025 \| Loans payable \| Forecast
Line of Credit Facility [Line Items]
Minimum liquidity requirement								$ 20,000,000
Loan Due October 2025 \| Secured Debt \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount			$ 35,100,000
Loan Due October 2025 \| Line of Credit \| Loans payable
Line of Credit Facility [Line Items]
Debt face amount			$ 23,000,000
Closing fee percentage			3.00%
Amended And Restated 10% Notes \| Loans payable
Line of Credit Facility [Line Items]
Interest rate										10.00%
Amended And Restated 10% Notes \| Loans payable \| Subsequent Event
Line of Credit Facility [Line Items]
Debt extinuished, paid-in-kind	$ 16,900,000

INITIAL PUBLIC OFFERING (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 19, 2021	Dec. 31, 2022	Sep. 19, 2022	Dec. 31, 2021	Oct. 22, 2021
Subsidiary, Sale of Stock [Line Items]
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Sale of stock (in USD per share)	19.00
Sale of stock, stock issuance costs (in USD per share)	$ 1.33
Sale of stock, consideration received	$ 131.5
IPO
Subsidiary, Sale of Stock [Line Items]
Stock issued and sold during period (in shares)	7,690,400
IPO, Firm Shares
Subsidiary, Sale of Stock [Line Items]
Stock issued and sold during period (in shares)	6,687,305
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Stock issued and sold during period (in shares)	1,003,095

ACQUISITION (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Fair Value of Identifiable Assets and Liabilities as of Acquisition Date

The following represented the fair value of the identifiable assets and liabilities as of the acquisition date of November 2, 2021:


The purchase price allocation was as follows (in thousands):
Cash and cash equivalents	$	491
Accounts receivable - trade	831
Prepaids and other current assets	429
Materials and supplies	1,559
Land and Rights of Way	1,727
Property, plant and equipment	43,782
Accounts payable	(2,943)
Accrued expenses	(298)
Due to related parties	(73)
Total identifiable assets and liabilities	$	45,505
Total purchase consideration (1)	$	45,505

ASPEN INTEREST (“OLYMPUS”) BUYOUT (Tables)

12 Months Ended

Dec. 31, 2022

Business Reorganization [Abstract]

Partners' Deficit of Aspen Interest

The following table details the Partners’ Deficit of the Aspen Interest as of April 1, 2021:


	Limited Partners
Balance - December 31, 2020	$	(1,336,784)
Net loss - three months ended March 31, 2021	(71,687)
Balance - April 1, 2021	$	(1,408,471)

DEBT - Future Scheduled Maturities on the Outstanding Borrowings (Details)	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 17,422,546
2024	10,024,636
2025	46,992,601
2026	9,881
2027	0
Long-term debt	$ 74,449,664

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

Property, Plant and Equipment [Abstract]

PREPAID INSURANCE (Details) - USD ($)	Oct. 20, 2022	Dec. 31, 2022	Dec. 31, 2021
Other Current Assets [Line Items]
Prepaid insurance		$ 4,877,935	$ 6,301,701
Directors and Officers Liability Insurance
Other Current Assets [Line Items]
Prepaid insurance		4,080,241
Prepaid insurance, renewal term	12 months
Commercial Property and Risk Coverages
Other Current Assets [Line Items]
Prepaid insurance		$ 797,694

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Property and Equipment

Property, plant and equipment consisted of the following as of:


	Useful Lives (Years)	December 31, 2022		December 31, 2021
Electric plant	10 - 60	$	66,295,809	$	66,153,985
Strongboxes and power transformers	8 - 30	52,318,704		7,489,472
Machinery and equipment	5 - 20	18,131,977		12,015,811
Rolling stock	5 - 7	261,000		261,000
Cryptocurrency machines and powering supplies	2 - 3	81,945,396		78,505,675
Computer hardware and software	2 - 5	17,196		56,620
Vehicles and trailers	2 - 7	659,133		155,564
Construction in progress	Not Depreciable	19,553,826		36,067,776
Asset retirement cost	10 - 30	580,452		580,452
		239,763,493		201,286,355
Accumulated depreciation and amortization		(72,558,812)		(34,629,200)
Property, plant, and equipment, net		$	167,204,681	$	166,657,155

VARIABLE PREPAID FORWARD SALES CONTRACT DERIVATIVE (Details)			12 Months Ended
	Jul. 27, 2022 USD ($)	Dec. 15, 2021 USD ($) bitcoin $ / bitcoin	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 24, 2022 $ / bitcoin	Mar. 16, 2022 $ / bitcoin
Derivative [Line Items]
Forward sale contract prepayment			$ 0	$ 7,000,000
Forward sale contract prepayment			970,000	0
Changes in fair value of forward sale derivative			$ 3,435,639	$ (116,488)
Digital currencies
Derivative [Line Items]
Cash received from sale of digital currencies	$ 220,000
Compound Derivative Instrument
Derivative [Line Items]
Number of derivative instruments to be sold (in bitcoin) \| bitcoin		250
Derivative floor price (in dollars per bitcoin) \| $ / bitcoin		28,000
Forward sale contract prepayment		$ 7,000,000
Capped price (in dollars per bitcoin) \| $ / bitcoin		85,500			85,500	50,000

EQUIPMENT DEPOSITS AND MINER SALES (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Equipment Deposits

The following table details the total equipment deposits of $10,081,307 as of December 31, 2022:


Vendor	Model	Count	Delivery Timeframe	Total Commitments		Unpaid		Transferred to PP&E [A]		Impairment		Sold		Equipment Deposits
MinerVa [B]	MinerVa MV7	15,000	Oct '21 - TBD	$	68,887,550	$	—	$	(32,756,302)	$	(17,348,742)	$	(8,701,199)	$	10,081,307
Cryptech	Bitmain Antminer S19j	2,400	Nov '21 - Oct '22	12,656,835		—		(12,656,835)		—				—
Northern Data	MicroBT WhatsMiner M30S & M30S+	9,900	Oct '21 - Jan '22	22,061,852		—		(22,061,852)		—				—
Bitmain Technologies Limited [C]	Bitmain Antminer S19j Pro	10,200	Apr '22 - Dec '22	60,814,500		(4,218,000)		(23,951,500)		—		(32,645,000)		—
Bitmain Technologies Limited [D]	Bitmain Antminer S19 XP	1,800	Jul '22 - Dec '22	19,530,000		(6,961,500)		—		—		(12,568,500)		—
Northern Data PA. LLC	MicroBT WhatsMiner M30S & M30S+	4,280	Jan '22 - Jun '22	11,340,374		—		(11,340,374)		—		—		—
Totals		43,580		$	195,291,111	$	(11,179,500)	$	(102,766,863)	$	(17,348,742)	$	(53,914,699)	$	10,081,307

[A] Miners that are delivered and physically placed in service are transferred to a fixed asset account at the respective unit price as defined in the agreement.

[B] Refer to Note 8 – Commitments And Contingencies for a $4,499,980 refund that reduced the total commitments to $68,887,550.

[C] The commitment for the outstanding unpaid balance was transferred upon the closing of the Asset Purchase Agreement described in Note 6 – Debt.

REDEEMABLE COMMON STOCK - Schedule of Redeemable Common Stock (Details) - USD ($)	3 Months Ended							9 Months Ended	12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Increase (Decrease) in Temporary Equity [Roll Forward]
Net losses attributable to noncontrolling interest								$ (15,803,234)	$ (105,910,737)	$ (15,803,234)
Maximum redemption right valuation	$ 1,186,239	$ 24,396,766	$ (102,888,062)	$ (110,222,560)	$ 66,644,424	$ 79,669,600	$ 172,774,052
Accumulated Deficit
Increase (Decrease) in Temporary Equity [Roll Forward]
Net losses attributable to noncontrolling interest	$ (18,865,180)	$ (42,203,141)	$ (22,576,255)	$ (18,125,837)	$ (8,594,196)	$ (4,328,460)	$ (2,235,219)	$ (15,157,875)	$ (101,770,413)
Common Stock - Class V
Increase (Decrease) in Temporary Equity [Roll Forward]
Beginning balance (in shares)	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600			27,057,600
Beginning balance				$ 301,052,617					$ 301,052,617
Maximum redemption right valuation									$ (187,527,617)
Redemption of Class V shares (in shares)									(1,000,000)
Ending balance (in shares)	26,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	27,057,600	26,057,600	27,057,600
Ending balance	$ 11,754,587				$ 301,052,617			$ 301,052,617	$ 11,754,587	$ 301,052,617

Carrying amount, attributable to parent and noncontrolling interests, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.