Stronghold Provides March 2024 Bitcoin Mining and Operational Update
- Stronghold mined 179 Bitcoin in March 2024, generating $0.1 million in energy revenue.
- Revenue in March 2024 increased by 37% compared to February 2024 and 94% compared to March 2023.
- The average hash rate improved to 3.6 EH/s in March 2024, up 4.7% from February 2024 and 62.6% from March 2023.
- Stronghold turned off its Scrubgrass Plant in March 2024 due to low power prices and imported electricity for mining operations.
- The Company's decision to import electricity was based on the expectation of persisting low power prices.
- None.
Insights
The reported increase in Bitcoin mining output by Stronghold Digital Mining, Inc. reflects a notable uptick in operational efficiency, with a 4% rise in Bitcoin-equivalent production from February to March 2024. This improvement is even more significant when viewed year-over-year, showcasing a 62.6% increase in average hash rate. The hash rate, a critical indicator of mining power, directly influences the company's mining capabilities and potential revenue. The higher hash price received in March 2024, which aligns with a substantial 35.8% surge in Bitcoin price, has favorably impacted Stronghold's revenue streams. However, the reliance on fluctuating cryptocurrency prices introduces a level of volatility and risk to the company's financial health.
Furthermore, the strategic decision to shut down the Scrubgrass Plant and import electricity suggests a tactical adjustment to operational costs. This move indicates Stronghold's agility in navigating the dynamic energy market to maintain profitability. The company's future performance will likely hinge on the balance between Bitcoin market prices and operational efficiencies, such as hash rate improvements and energy cost management.
Stronghold's operational update highlights the interplay between cryptocurrency mining and energy markets. The choice to temporarily suspend operations at the Scrubgrass Plant and procure electricity under an existing agreement with Champion Energy Services is a response to low power prices. This decision underscores the importance of energy costs in the mining equation and the company's proactive measures to optimize expenses. While the short-term benefits of reduced operational costs are clear, the long-term implications of such a strategy warrant attention. Energy prices are inherently volatile and the company's ability to swiftly adapt to these fluctuations will be a deciding factor in sustaining its competitive edge.
The reported 37% monthly and 94% yearly revenue growth for Stronghold Digital Mining is impressive, reflecting both the company's operational improvements and favorable market conditions. However, it's important for stakeholders to consider the underlying drivers of this growth, such as the higher hash price and Bitcoin's price volatility. While the immediate financial performance seems robust, the sustainability of this growth trajectory depends on the continued demand for Bitcoin and the company's ability to manage operational costs amidst fluctuating energy prices. Investors should monitor the cryptocurrency market trends and Stronghold's operational strategies, particularly its energy procurement decisions, to gauge the potential impact on future financial performance.
NEW YORK, April 09, 2024 (GLOBE NEWSWIRE) -- Stronghold Digital Mining, Inc. (NASDAQ: SDIG) (“Stronghold” or the “Company”) today provided the following updates regarding its operations and financial performance:
Bitcoin Mining Update
Stronghold mined 179 Bitcoin in March 2024 and generated approximately
The Company generated an estimated
In March 2024, due to continuing low power prices and the Company’s expectation that they will persist through the coming shoulder months, the Company elected to turn off its Scrubgrass Plant and to instead import electricity for its mining operations pursuant to its previously announced Electricity Sales and Purchase Agreement with Champion Energy Services, LLC. The Scrubgrass Plant is expected to remain off until it becomes economically compelling to run it relative to purchasing electricity.
About Stronghold Digital Mining, Inc.
Stronghold is a vertically integrated Bitcoin mining company with an emphasis on environmentally beneficial operations. Stronghold houses its miners at its wholly owned and operated Scrubgrass Plant and Panther Creek Plant, both of which are low-cost, environmentally beneficial coal refuse power generation facilities in Pennsylvania.
Forward Looking Statements of Stronghold:
Certain statements contained in this press release, including guidance, constitute “forward-looking statements.” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements and the business prospects of Stronghold are subject to a number of risks and uncertainties that may cause Stronghold’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things: 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; our ability to raise capital to fund business growth; our ability to maintain sufficient liquidity to fund operations, growth and acquisitions; our substantial indebtedness and its effect on our results of operations and our financial condition; uncertainty regarding the outcomes of any investigations or proceedings; our ability to enter into purchase agreements, acquisitions and financing transactions; public health crises, epidemics, and pandemics such as the coronavirus pandemic; our ability to procure crypto asset mining equipment, including from foreign-based suppliers; our ability to maintain our relationships with our third party brokers and our dependence on their performance; our ability to procure crypto asset mining equipment; developments and changes in laws and regulations, including increased regulation of the crypto asset industry through legislative action and revised rules and standards applied by The Financial Crimes Enforcement Network under the authority of the U.S. Bank Secrecy Act and the Investment Company Act; the future acceptance and/or widespread use of, and demand for, Bitcoin and other crypto assets; our ability to respond to price fluctuations and rapidly changing technology; our ability to operate our coal refuse power generation facilities as planned; our ability to develop and monetize our carbon capture project to generate meaningful revenue, on a timely basis or at all; our ability to remain listed on a stock exchange and maintain an active trading market; our ability to avail ourselves of tax credits for the clean-up of coal refuse piles; and legislative or regulatory changes, and liability under, or any future inability to comply with, existing or future energy regulations or requirements. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed on March 8, 2024 and in our subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement or guidance speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements or guidance, whether because of new information, future events, or otherwise.
Contacts:
Stronghold Digital Mining, Inc.
Investor Contact:
Matt Glover or Alex Kovtun
Gateway Group, Inc.
SDIG@gateway-grp.com
1-949-574-3860
Media Contact:
contact@strongholddigitalmining.com
FAQ
How many Bitcoins did Stronghold mine in March 2024?
What was the revenue generated by Stronghold in March 2024?
What was the percentage increase in revenue for Stronghold in March 2024 compared to February 2024?
Why did Stronghold turn off its Scrubgrass Plant in March 2024?
What was the average hash rate for Stronghold in March 2024?
