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Stronghold
đŸ‡ș🇾 NASDAQ:SDIG
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Sep 30, 2023

Stronghold Q3 2023 Earnings Report

Reported a net loss and reiterated Q4 2023 hash rate guidance.

Key Takeaways

Stronghold Digital Mining reported Q3 2023 revenues of $17.7 million and a net loss of $22.3 million. The company is focusing on carbon capture initiatives and expects a 20% sequential growth in hash rate for Q4 2023.

Beneficial use ash can capture CO2.

Initial phase of carbon capture project underway at the Scrubgrass Plant.

Reiterating Q4 2023 hash rate guidance with at least 20% sequential growth.

Signed managed services agreement with Frontier Mining to optimize Bitcoin mining operations.

Total Revenue
$17.7M
Previous year: $24.7M
-28.4%
EPS
-$1.54
Previous year: $0.7
-320.0%
Gross Profit
-$7.46M
Previous year: $26.4M
-128.3%
Cash and Equivalents
$5.62M
Previous year: $16.7M
-66.4%
Free Cash Flow
$8.04M
Total Assets
$173M
Previous year: $274M
-37.0%

Stronghold

Stronghold

Stronghold Revenue by Segment

Forward Guidance

Stronghold is committed to Bitcoin mining and expects at least 20% sequential growth in hash rate going into the fourth quarter of 2023.

Positive Outlook

  • Company expects at least 20% sequential growth in hash rate going into the fourth quarter of 2023.
  • Company is taking a disciplined approach to the Bitcoin event in April of 2024, with no incremental capital currently committed to purchase additional miners.
  • Signed Managed Services Agreement with Frontier Outpost 8, LLC (“Frontier Mining”) to optimize Bitcoin mining operations and profitability of Stronghold’s data centers.
  • Mining waste piles, if left in their dormant states, will remain ‘forever emitters’ of greenhouse gasses, including CO2, methane, and other air pollutants.
  • Company believes that its process will qualify for the Carbonated Materials Methodology for CO2 Removal on the Puro Registry.

Challenges Ahead

  • The hybrid nature of our business model, which is highly dependent on the price of Bitcoin.
  • Our dependence on the level of demand and financial performance of the crypto asset industry.
  • Our ability to manage growth, business, financial results and results of operations.
  • Uncertainty regarding our evolving business model.
  • Our ability to retain management and key personnel and the integration of new management.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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