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Mar 31, 2022

Stronghold Q1 2022 Earnings Report

Reported financial results and provided an operational update.

Key Takeaways

Stronghold Digital Mining reported a net loss of $32.3 million for Q1 2022, compared to a net loss of $0.2 million in the same quarter a year ago. Revenues increased to $28.7 million, driven by higher energy generation and cryptocurrency mining revenues. The company mined 438 Bitcoin during the quarter and averaged a hash rate of 0.9 EH/s.

Removed approximately 279,000 tons of coal refuse and returned approximately 179,000 tons of beneficial use ash to waste coal sites during the first quarter of 2022.

Issued approximately $33.8 million aggregate principal notes bearing a coupon of 10.0% and a maturity date of May 15, 2024, plus approximately 6.3 million warrants, with a strike price of $2.50, to certain investors.

Mined 438 Bitcoin during the first quarter of 2022, including 198 in March 2022; mined over 100 Bitcoin in first 13 days of May.

Averaged hash rate of 0.9 exahash per second (“EH/s”) in the first quarter of 2022.

Total Revenue
$28.7M
EPS
-$6.6
Gross Profit
$29.4M
Cash and Equivalents
$25.5M
Total Assets
$372M

Stronghold

Stronghold

Stronghold Revenue by Segment

Forward Guidance

The company reiterates its guidance to exit 2022 with 4.1 EH/s of installed hash rate capacity, which excludes all potential future deliveries of MinerVa miners.

Revenue & Expenses

Visualization of income flow from segment revenue to net income