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Mar 31, 2023

Stronghold Q1 2023 Earnings Report

Stronghold reported a net loss, but is expanding operations and reducing debt.

Key Takeaways

Stronghold Digital Mining reported Q1 2023 revenue of $17.3 million and a net loss of $46.7 million. The company is focused on expanding its hash rate capacity to 4 EH/s by the end of Q3 2023 and has made progress in deleveraging its balance sheet.

Revenue for Q1 2023 was $17.3 million.

Net loss for Q1 2023 was $46.7 million.

Company expects to achieve hash rate capacity of approximately 4 EH/s by the end of the third quarter of 2023.

Approximately $59.6 million of principal amount of debt outstanding as of May 8, 2023.

Total Revenue
$17.3M
Previous year: $28.7M
-39.8%
EPS
$0.1
Previous year: -$6.6
-101.5%
Hash Rate Capacity
2.8
Gross Profit
$17.3M
Previous year: $29.4M
-41.2%
Cash and Equivalents
$6.35M
Previous year: $25.5M
-75.1%
Total Assets
$189M
Previous year: $372M
-49.1%

Stronghold

Stronghold

Stronghold Revenue by Segment

Forward Guidance

Stronghold expects to achieve a hash rate capacity of approximately 4 EH/s by the end of the third quarter of 2023 and believes that the likely range for the cost of power for the rest of 2023 has improved to $40 to $50 per MWh.

Positive Outlook

  • Achieve hash rate capacity of approximately 4 EH/s by the end of the third quarter of 2023
  • Receiving 5,000 MicroBT Whatsminer M50 miners expected later in May.
  • Receipt of the remaining 2,000 Canaan A1346 miners expected by June 15, 2023.
  • Cost of power for the rest of 2023 has improved to $40 to $50 per MWh.
  • Company is pursuing the deployment of its additional 25 MW of end-to-end data center equipment that it owns in inventory.

Challenges Ahead

  • No assurances can be made that Stronghold will be able to consummate any of these transactions.
  • No assurances can be made that Stronghold will receive the remaining MinerVa miners.
  • May incur expenses that are the same as or similar to some of the adjustments in such presentation.
  • Adjusted EBITDA has important limitations as an analytical tool
  • Forward-looking statements and the business prospects of Stronghold are subject to a number of risks and uncertainties

Revenue & Expenses

Visualization of income flow from segment revenue to net income