‱
Jun 30, 2023

Stronghold Q2 2023 Earnings Report

Stronghold reported a net loss but showed revenue growth in cryptocurrency mining and hosting.

Key Takeaways

Stronghold Digital Mining reported Q2 2023 results, including revenue of $18.2 million, a net loss of $11.7 million, and a non-GAAP Adjusted EBITDA loss of $2.6 million. The company mined 626 Bitcoin, representing growth compared to previous quarters. They also accelerated their hash rate guidance and expect to achieve 4 EH/s by September 1, 2023.

Achieved accelerated hash rate guidance, expecting 4 EH/s by September 1, 2023.

Procured over 14,000 high-spec Bitcoin miners between April and July 2023, providing nearly 1.6 EH/s.

Mined 626 Bitcoin in Q2 2023, reflecting growth compared to Q4 2022 and Q1 2023.

Generated revenue of $18.2 million, a net loss of $11.7 million, and a non-GAAP Adjusted EBITDA loss of $2.6 million in Q2 2023.

Total Revenue
$18.2M
Previous year: $29.2M
-37.5%
EPS
-$2.4
Previous year: -$1.5
+60.0%
Gross Profit
$18.2M
Previous year: $29.7M
-38.7%
Cash and Equivalents
$5.1M
Previous year: $33M
-84.5%
Total Assets
$187M
Previous year: $355M
-47.3%

Stronghold

Stronghold

Stronghold Revenue by Segment

Forward Guidance

Stronghold expects to have 4 EH/s of installed hash rate capacity at their Panther Creek and Scrubgrass data centers. They are also evaluating opportunities to deploy approximately 25 megawatts of end-to-end data center equipment at a prospective third site and expect to provide an update on this initiative by the end of the third quarter of this year.

Positive Outlook

  • Expected hash rate capacity of 4 EH/s at Panther Creek and Scrubgrass data centers.
  • Vertically integrated business model with wholly owned power plants and data centers.
  • Anticipated advantages from the vertically integrated model going into the Bitcoin halving in April 2024.
  • Payback periods for miner purchases in 2023 expected to be approximately one year.
  • Evaluating opportunities to deploy approximately 25 megawatts of data center equipment at a third site.

Revenue & Expenses

Visualization of income flow from segment revenue to net income