Business Context and Reporting Period
This Form 8-K was filed by Creek Road Miners, Inc. (not Prairie Operating Co.) on March 6, 2023, reporting events occurring on March 2, 2023. The registrant is a Delaware corporation focused on cryptocurrency mining operations.
Key Financial Metrics
The filing does not provide standard financial statements, revenue, profit, cash flow, or debt metrics. The only specific financial term disclosed is the initial hosting service fee of $0.08 per kilowatt-hour for electricity consumed by the Company's miners.
Material Changes
On March 2, 2023, the Company entered into a Material Definitive Agreement (Item 1.01) with Atlas Power Hosting, LLC. This agreement establishes a two-year term for cryptocurrency mining services at a facility in North Dakota.
Outlook, Risks, and Unusual Items
- Payment Structure: The Company will not make cash deposits or prepayments. Instead, all mined currency is transferred to wallets controlled by Atlas.
- Settlement Terms: Atlas deducts the hosting fee from the monthly total mined currency based on the closing price of Bitcoin at 11:59 p.m. Central Time (Coinbase Global, Inc. data) and remits the net amount within five business days after month-end.
- Operational Risk: The arrangement creates a dependency on Atlas for custody of mined assets until settlement.
Investor Verification Checklist
- Verify the operational status and capacity of the North Dakota facility.
- Confirm the current market price of Bitcoin to assess the volatility risk inherent in the fee deduction mechanism.
- Review the full text of the Master Services Agreement (Exhibit 10.1) for termination clauses and liability limitations.
- Check for any subsequent filings regarding the actual deployment of miners under this agreement.