Stronghold Announces January Bitcoin Mining and Carbon Capture Update
February 08 2024 - 8:10AM
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 192 Bitcoin in January 2024 and
generated approximately $0.4 million in energy revenue, which
represents the equivalent of approximately 10 additional Bitcoin
based on the average price of Bitcoin during the month. This
equates to approximately 202 of Bitcoin-equivalent production in
January 2024, down approximately 6% from December 2023.
The Company generated an estimated $8.0 million
of revenue during January. The primary driver of the sequential
decrease was a lower hash price of $0.08 per TH/s per day in
January compared to $0.10 in December, which was due to lower
transaction fees, averaging 12% in January compared to 26% in
December, and 4% sequential growth in network hash rate.
Carbon Capture Update
Stronghold continues to be encouraged by test
results from its first Karbolith. The Company has received
third-party lab results from 12 additional samples of beneficial
use ash that were taken after the Company’s December 2023 investor
day. The results demonstrated carbonation of up to 14% of starting
weight of dry ash, with carbonation of approximately 10% on
average. Stronghold recently began erecting its second Karbolith,
which is expected to be operational by the end of February, and the
Company is continuing its work on optimizing ash placement, its
operations, and Karbolith spacing to maximize carbon removals. The
Company expects construction time to be approximately two weeks and
for the Karbolith to cost approximately $60,000, a meaningful
reduction compared to the first Karbolith.
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 April 3, 2023 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 KovtunGateway Group, Inc.
SDIG@gateway-grp.com1-949-574-3860
Media
Contact:contact@strongholddigitalmining.com
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