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Jun 30, 2024
Stronghold Q2 2024 Earnings Report
Stronghold's financial performance in Q2 2024 was marked by a slight year-over-year revenue increase but also a significant net loss.
Key Takeaways
Stronghold Digital Mining reported a slight increase in revenue compared to the same quarter last year, but experienced a substantial net loss. The company is actively pursuing strategic alternatives and site expansion opportunities.
Revenues reached $19.1 million, a 4.8% increase year-over-year but down 30.6% sequentially.
GAAP Net Loss was $21.3 million, with a non-GAAP Adjusted EBITDA loss of $0.3 million.
The company is continuing a formal review of strategic alternatives, including a potential sale.
Stronghold is pursuing significant site expansion and evaluating GPU computing potential.
Revenue by Segment
Forward Guidance
Stronghold is focusing on strategic alternatives, site expansion, and GPU computing potential to enhance long-term value. The company anticipates increased revenue from the PJM Base Residual Auction and the Coal Refuse Reclamation and Energy Tax Credit.
Positive Outlook
- Potential for increased revenue from the PJM Base Residual Auction.
- Expected incremental net income from the increase in the waste coal tax credit.
- Opportunity for data center expansion at the Panther Creek site.
- Potential ancillary revenue streams from data center loads qualifying as PJM 'In Network' load.
- Ongoing evaluation of additional potential uses for the Scrubgrass and Panther Creek sites.
Challenges Ahead
- Uncertainty regarding the completion of the strategic alternatives process.
- Dependence on the price of Bitcoin and the performance of the crypto asset industry.
- Substantial indebtedness and its effect on financial condition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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