Stronghold Digital Mining reported a net loss of $49.6 million in the third quarter, which badly missed analyst estimates.
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.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.