CoinShots Logo
Stronghold Digital Mining Misses Analyst Estimates With $49.6M Q3 Loss
Stronghold Digital Mining reported a net loss of $49.6 million in the third quarter, which badly missed analyst estimates.
Harshvardhan
3:02 10th Nov, 2022
Markets

The results, its first since announcing a series of debt restructuring deals with its lenders, were very far off the net loss of $11.4 million analysts surveyed by FactSet expected.

Stronghold's revenue in the period was $24.7 million, which compared to an estimate of $24.6 million.  Shares were higher in post-market trading.

The miner reported liquidity of about $27 million comprising $27 million cash plus 19 Bitcoin, principal amount of debt outstanding of $82 million, and net debt of $55 million, a 51% reduction since June 30.

“Bitcoin mining equipment remains in acute oversupply, and we believe that prices have yet to find a bottom," CEO Greg Beard said.

Bitcoin miners have been struggling amid the crash in crypto prices, high energy prices and increasing mining difficulty.

The Kennerdell, Pa.-based company said in August that it would be eliminating $67.4 million in outstanding debt with NYDIG by returning more than 26,000 mining machines and also by restructuring a key loan with WhiteHawk. The company then said on Nov. 1 that it had cancelled the remaining debt with NYDIG and closed the deal to restructure its WhiteHawk loan, freeing up $23 million in additional funds it could borrow.

Stronghold also ended a hosting deal with Northern Data last month, agreeing to pay the firm a total of $4.5 million. It said it expects to see between $500,000 and $1.1 million in monthly savings related to profit share payments through 2023 and have significant cash flow benefits in the next two years.

Source



CoinShots Logo

Services

Social

Get in touch:

© 2023 Coinshots (AtlasZero LLC). All rights reserved.