Stronghold Digital Mining, Inc. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Stronghold Digital Mining Q1 2023 Earnings Summary

  • Revenue: $17.3 million for Q1 2023, compared to $23.4 million in Q4 2022 — reflecting industry-wide challenges but stable operations.
  • Bitcoin Production: 618 BTC mined in Q1 2023, showing recovery after major de-leveraging in 2022.
  • Adjusted EBITDA: $(3.9) million, narrowed loss from prior quarters, reflecting ongoing cost control efforts.
  • Net Loss: $(46.7) million in Q1 2023, largely attributed to non-cash impairment impacts.
  • Debt Reduction: Total debt reduced by 60% over 9 months, from $146 million to $60 million. Net current liabilities also down from $179 million to $71 million.

Operational Highlights

  • Hash Rate: Currently at 2.8 EH/s, up from 1.4 EH/s post August 2022 miner return. Expected to reach 4 EH/s by Q3 2023.
  • Data Center Capacity: Scaling from current 95 MW to 130 MW by end of Q3 2023.
  • Miner Acquisitions:
    • 22,000 miners (2.2 EH) procured for $15 million since August 2022.
    • 5,000 MicroBT M50 miners purchased at $15.50 per TH — expected to generate >$110/MWh in revenue with < 1-year payback.

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Operator: Good morning, and welcome to Stronghold Digital's Mining Conference Call for the First Quarter ended March 31, 2023. My name is Catherine, and I'll be your operator this morning. Before this call, Stronghold issued its results for the first quarter of 2023 and a press release, which is available in the Investors section of the company's website at www.strongedigitalmining.com. You can find a link to the Investors section at the top of the home page. Joining us on today's call are Stronghold's Chairman and CEO, Greg Beard; and CFO, Matt Smith. Following their remarks, we will open the call for questions. Before we begin, Alex Kovtun from Gateway Group will make a brief introductory statement. Mr. Kovtun, please proceed. Alex Kovtun: Thank you, operator. Good morning, everyone, and welcome. Today's slide presentation, along with our earnings release and financial disclosures were posted to our website earlier today and can be accessed on our website at www.strongholddigitalmining.com. Some statements we're making today may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the discl

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