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News

Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

March 29, 2023 - Around 2 mins mins to read
Key Points:
  • According to a Wednesday announcement, Stronghold Digital Mining (SDIG) increased its year-end bitcoin mining processing power prediction to 4 exahash/second (EH/s) from 3 EH/s.
  • The firm increased its 12-month sales expectation from $108 million to $129 million to between $94 million and $129 million. 
Bitcoin Miner Stronghold announced to increase year-end hashrate guidance to 4 EH/s as bitcoin mining income fell 35% from the previous quarter.
Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

According to a Wednesday announcement, Stronghold Digital Mining (SDIG) increased its year-end bitcoin mining processing power prediction to 4 exahash/second (EH/s) from 3 EH/s. The company’s net loss increased 45% year on year to 74 cents per share in the fourth quarter.

The firm increased its 12-month sales expectation from $108 million to $129 million to between $94 million and $129 million. Mining profitability, as determined by hashprice, ranges between 7 and 10 cents per terahash/second (TH/s) every day. It previously said that it projected a hashprice of around 9 cents/TH/s. A million terahash is equal to one exahash.

Revenue of $23.4 million in the fourth quarter was mostly driven by selling electricity to the power grid rather than crypto mining. In Pennsylvania, the miner owns two coal plants that employ coal waste, or heaps of the fossil fuel left over after the physical mining process.

Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

Stronghold surrendered equipment to lenders to reduce debt, resulting in a 35% decline in bitcoin mining income from the prior quarter. It also reduced efforts to sell power to the grid at periods of peak energy demand.

On the results call, Chief Financial Officer Matthew Smith described how the increased usage of renewable energy has the impact of boosting power pricing at times and reducing it at others, and how Stronghold is aiming to capitalize on this.

In March, it agreed to repay $11.4 million to an electrical contractor in return for a $3.5 million subordinated note and 3 million penny warrants. In February, the company also eliminated $16.9 million in principle and $1 million in interest by concluding its exchange arrangement, which allows convertible notes to be redeemed with shares. It has $59.8 million in outstanding debt as of March 28.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News

News

Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

Key Points:
  • According to a Wednesday announcement, Stronghold Digital Mining (SDIG) increased its year-end bitcoin mining processing power prediction to 4 exahash/second (EH/s) from 3 EH/s.
  • The firm increased its 12-month sales expectation from $108 million to $129 million to between $94 million and $129 million. 
Bitcoin Miner Stronghold announced to increase year-end hashrate guidance to 4 EH/s as bitcoin mining income fell 35% from the previous quarter.
Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

According to a Wednesday announcement, Stronghold Digital Mining (SDIG) increased its year-end bitcoin mining processing power prediction to 4 exahash/second (EH/s) from 3 EH/s. The company’s net loss increased 45% year on year to 74 cents per share in the fourth quarter.

The firm increased its 12-month sales expectation from $108 million to $129 million to between $94 million and $129 million. Mining profitability, as determined by hashprice, ranges between 7 and 10 cents per terahash/second (TH/s) every day. It previously said that it projected a hashprice of around 9 cents/TH/s. A million terahash is equal to one exahash.

Revenue of $23.4 million in the fourth quarter was mostly driven by selling electricity to the power grid rather than crypto mining. In Pennsylvania, the miner owns two coal plants that employ coal waste, or heaps of the fossil fuel left over after the physical mining process.

Stronghold Increases Hashrate Guidance To 4 EH/s As Bitcoin Mining Revenue Dropped 35%

Stronghold surrendered equipment to lenders to reduce debt, resulting in a 35% decline in bitcoin mining income from the prior quarter. It also reduced efforts to sell power to the grid at periods of peak energy demand.

On the results call, Chief Financial Officer Matthew Smith described how the increased usage of renewable energy has the impact of boosting power pricing at times and reducing it at others, and how Stronghold is aiming to capitalize on this.

In March, it agreed to repay $11.4 million to an electrical contractor in return for a $3.5 million subordinated note and 3 million penny warrants. In February, the company also eliminated $16.9 million in principle and $1 million in interest by concluding its exchange arrangement, which allows convertible notes to be redeemed with shares. It has $59.8 million in outstanding debt as of March 28.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News