Bitcoin Miner Stronghold Raises Year-End Hashrate Guidance to 4 EH/s
Stronghold Digital Mining (SDIG) raised its year-end bitcoin mining computing power forecast to 4 exahash/second (EH/s) from 3 EH/s, according to a Wednesday statement.
For the fourth quarter, the company’s net loss widened 45% to $0.74 per share from the year-earlier quarter.
The company widened its 12-month revenue forecast to between $94 million and $129 million from a previous range of $108 million-$114 million. Mining profitability, which is measured as the hashprice, is seen $0.07-$0.10 per terahash/second (TH/s) per day. Previously, it said it expected a hashprice of $0.085/TH/s. An exahash is 1 million terahash.
The miner’s shares rose 6% in morning trading on the Nasdaq.
Fourth-quarter revenue of $23.4 million was driven mainly by selling energy to the power grid rather than crypto mining. The miner owns two coal plants in Pennsylvania which use coal refuse, or piles of the fossil fuel left behind from the physical mining process.
Bitcoin mining revenue dropped 35% from the previous quarter as Stronghold returned equipment to lenders to lower debt. It also curtailed operations at times of high energy demand to sell power to the grid.
In recent months, Stronghold has taken steps to reduce its debt levels. In March it agreed with an electrical contractor to extinguish $11.4 million in exchange for a $3.5 million subordinated note and three million penny warrants. In February, the firm also extinguished $16.9 million of principal and $1 million of accrued interest by closing its exchange agreement, under which convertible notes are redeemable by stock. As of March 28, it had $59.8 million in outstanding debt.