Mining company Stronghold fined $1.4 million for violating electricity market rules in Bitcoin mining

Mining company Stronghold Digital, while prioritizing the development of its Bitcoin mining business, violated energy market rules and agreed to pay over $1.4 million in fines and refunds.

Stronghold has a contractual obligation to provide available power to the PJM grid to help ensure the reliability of the grid. However, the Federal Energy Regulatory Commission's Enforcement Office found that Stronghold failed to fulfill this obligation from June 2021 to May 2022, instead diverting power to its Bitcoin mining operations.