Stronghold Digital Mining misses analyst estimates with $49.6 million Q3 loss

Quick Take

  • Stronghold Digital Mining reported a net loss of $49.6 million in the third quarter missing analyst estimates. 

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.

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