NEW YORK - Stronghold Digital Mining, Inc. (NASDAQ:SDIG), a vertically integrated Bitcoin mining company, has reported a significant increase in its revenue and Bitcoin production for March 2024. The company mined 179 Bitcoin last month and generated approximately $0.1 million in energy revenue, which is comparable to the mining of one additional Bitcoin based on the average price of the cryptocurrency during the same period.
This performance marks an approximate 4% increase in Bitcoin-equivalent production from February 2024, achieving roughly 180 Bitcoin-equivalent units in March. Stronghold's revenue surged to an estimated $11.1 million, which is a 37% rise from the previous month and a substantial 94% increase compared to March of the previous year.
The company attributes the sequential revenue growth mainly to a higher hash price of $0.109 per terahash per second (TH/s) per day in March, up from $0.084 in February. This increase was partly due to a 35.8% rise in Bitcoin's price, although it was slightly offset by a decrease in transaction fees and a 4.3% growth in network hash rate.
Stronghold's average hash rate improved to 3.6 exahashes per second (EH/s) in March, a 4.7% increase from February and a significant 62.6% jump from March 2023. The company also reported an increased average hash price of $0.109 in March 2024, compared to $0.073 in the same month of the previous year.
In a strategic move due to persistently low power prices, Stronghold decided to shut down its Scrubgrass Plant in March and instead import electricity for its mining operations under an agreement with Champion Energy Services, LLC. The plant will remain offline until running it becomes economically favorable compared to purchasing power.
Stronghold operates with a focus on environmentally beneficial practices, housing its miners at its own Scrubgrass and Panther Creek Plants in Pennsylvania. These facilities are designed to be low-cost and environmentally beneficial coal refuse power generation establishments.
The information in this article is based on a press release statement from Stronghold Digital Mining, Inc.
InvestingPro Insights
As Stronghold Digital Mining, Inc. (NASDAQ:SDIG) continues to navigate the volatile cryptocurrency mining industry, the company's financial health and market performance provide key insights for investors. According to InvestingPro data, Stronghold's market capitalization is currently at $53.28 million, reflecting the market's valuation of the company. Despite a notable increase in Bitcoin production and energy revenue for March 2024, the company's revenue has experienced a significant decrease of 31.99% over the last twelve months as of Q1 2023.
InvestingPro Tips indicate that Stronghold Digital Mining operates with a significant debt burden and is quickly burning through cash, which are important considerations for investors assessing the company's long-term viability. Analysts also do not anticipate the company will be profitable this year, as evidenced by a negative P/E ratio of -1.54. This is further compounded by the fact that the company's short-term obligations exceed its liquid assets, making its financial position more precarious.
Investors looking for further insights into Stronghold Digital Mining's performance and future prospects can find additional InvestingPro Tips by visiting InvestingPro's dedicated page for SDIG. There are currently 14 additional tips available, offering a deeper analysis of the company's financial health and market performance. For those interested in a comprehensive investment tool, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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