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Stronghold
đŸ‡ș🇾 NASDAQ:SDIG
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Dec 31, 2022

Stronghold Q4 2022 Earnings Report

Announced financial and operational results.

Key Takeaways

Stronghold Digital Mining reported Q4 2022 revenue of $23.4 million, a net loss of $47.4 million, and a non-GAAP adjusted EBITDA of $5.2 million. The company is focused on deleveraging, enhancing liquidity, and improving operational efficiency.

Achieved Q4 2022 revenue of $23.4 million and non-GAAP adjusted EBITDA of $5.2 million.

Enhanced liquidity and financial flexibility through amended credit agreement and exchange of convertible notes for preferred stock.

Expanded hosting agreement with Foundry Digital, LLC to support approximately 4 EH/s of miners.

Realized benefits from selling beneficial use ash and expect further improvements in 2023.

Total Revenue
$23.4M
Previous year: $17M
+37.6%
EPS
$2.5
Previous year: -$3.6
-169.4%
Hash Rate Capacity
4
Gross Profit
$23.4M
Previous year: $17M
+37.6%
Cash and Equivalents
$13.3M
Previous year: $31.8M
-58.2%
Total Assets
$217M
Previous year: $355M
-38.8%

Stronghold

Stronghold

Stronghold Revenue by Segment

Forward Guidance

Stronghold provided forward twelve-month guidance (April 2023 - March 2024) based on various hash price and hash rate capacity scenarios.

Positive Outlook

  • Revenue guidance is sensitized to hash rate capacity.
  • Revenue guidance is sensitized to various hash prices.
  • Assumes miner uptime of 95%.
  • Assumes hosting commitments, including profit share, in line with current contractual commitments pursuant to existing hosting agreements.
  • Revenue received for selling electricity to the grid is based on forward prices for the Penelec and Pennsylvania Power & Light zones in PJM, as of March 28, 2023.

Challenges Ahead

  • Bitcoin mining revenue is based on a hash price, which is measured in dollars per terahash per second (“TH/s”) per day.
  • Hash price represents global Bitcoin mining revenue per TH/s of network hash rate, incorporating both Bitcoin price and network hash rate.
  • Guidance is sensitized to the following hash prices: $0.07 per TH/s per day, $0.08 per TH/s per day, $0.09 per TH/s per day, and $0.10 per TH/s per day.
  • All cases assume Stronghold’s current hash rate capacity of approximately 2.6 EH/s through June 2023.
  • July-to-March hash rate capacity is sensitized to the following hash rate capacities: 3.2 EH/s, 3.6 EH/s, and 4.0 EH/s.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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