Stronghold Digital Beats Q1 Revenue Estimates, but Misses on Earnings

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Bitcoin miner Stronghold Digital, which generates energy from waste coal, beat Q1 revenue estimates, but fell short on adjusted earnings. $SDIG By NelWang

Stronghold Digital reported first-quarter revenues 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 & equivalents plus unrestricted bitcoin holdings, and more than $60 million of liquidity. “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 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., 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.The Festival for the Decentralized World

 

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