Stronghold Digital Beats Q1 Revenue Estimates, Misses on Earnings

Shares of the bitcoin miner that uses waste coal for energy fell slightly in after-hours trading.

AccessTimeIconMay 16, 2022 at 9:21 p.m. UTC
Updated May 11, 2023 at 6:53 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Stronghold Digital (SDIG) reported first-quarter revenue of $28.7 million, ahead of the consensus analyst estimate of $26.2 million, according to FactSet. But its adjusted net loss of 66 cents per share exceeded the consensus estimate for an adjusted net loss of 8 cents per share.

On May 15, the company, which uses waste coal for energy, said it raised $27 million in cash proceeds through the issuance of principal notes. In total, Stronghold said it had $47 million of cash and equivalents plus unrestricted bitcoin holdings, and more than $60 million of liquidity.

  • How NEAR Enables Multichain Access From One Account
    00:56
    How NEAR Enables Multichain Access From One Account
  • Why the NEAR foundation Chose Eigenlayer as a Security Partner
    00:54
    Why the NEAR foundation Chose Eigenlayer as a Security Partner
  • Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
    07:08
    Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
  • How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
    01:11
    How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
  • “Stronghold believes its liquidity position, combined with expected operating cash flow, will be sufficient to meet all existing commitments and fund operations,” the company said in a statement. “The company also believes that incremental liquidity can be created through proceeds related to bitcoin [BTC] miner fleet management and optimization, including potential miner sales and through additional equipment financing agreements, if necessary."

    In its first quarter report, Stronghold reiterated its latest guidance to exit 2022 with 4.1 EH/s of installed hash rate capacity.

    Following its fourth-quarter earnings report, Stronghold shares tumbled as the company said it wouldn’t be able to achieve its prior target of 8.0 EH/s in computing power by the end of 2022.

    Stronghold shares fell roughly 1% to $2.09 in after-hours trading. Shares are down more than 80% year to date.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Nelson Wang

    Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.