Stronghold Digital Mining Reports Q3 2024 Results

Stronghold Digital Mining, Inc. Class A ( (SDIG) ) has released its Q3 earnings. Here is a breakdown of the information Stronghold Digital Mining, Inc. Class A presented to its investors.

Stronghold Digital Mining, Inc. is a vertically integrated Bitcoin mining company focusing on environmentally beneficial operations through its coal refuse power generation facilities in Pennsylvania. In its latest earnings report for the third quarter of 2024, Stronghold reported revenues of $11.2 million, reflecting a significant decrease both sequentially and year-over-year. The company also recorded a GAAP net loss of $22.7 million and a non-GAAP Adjusted EBITDA loss of $5.5 million.

Key financial metrics indicate that Stronghold’s cryptocurrency operations contributed $10.6 million to its revenues, while energy sales added $0.5 million. The company’s Bitcoin mining output was 188 Bitcoins, with an equivalent of 196 when energy revenues are considered. However, production decreased by approximately 35% due to the Bitcoin halving event in April 2024. Additionally, Stronghold entered a merger agreement with Bitfarms Ltd. that includes a share exchange arrangement and is expected to finalize in early 2025.

Strategically, Stronghold has entered hosting agreements with Bitfarms, which involve hosting Bitcoin miners at its Panther Creek and Scrubgrass sites. These agreements are anticipated to generate profit-sharing opportunities for Stronghold. Furthermore, the company’s liquidity as of November 8, 2024, stood at $6.7 million in cash and Bitcoin, with significant outstanding indebtedness of approximately $53.7 million.

Looking ahead, Stronghold’s management remains cautiously optimistic, focusing on strategic partnerships and operational efficiencies to navigate the challenging market conditions and enhance shareholder value. The merger with Bitfarms is poised to open new avenues for growth, subject to regulatory approvals and other closing conditions.