Stronghold Digital's Stock Tanks as Q4 Results Miss Estimates
The bitcoin miner said it no longer believes its original target of 8.0 exahash per second in computing power by the end of 2022 is achievable.
Mar 29, 2022 at 8:50 p.m. UTCUpdated May 11, 2023 at 7:18 p.m. UTC
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Shares of Stronghold Digital Mining (SDIG) tumbled more than 25% in after-hours trading on Tuesday after the bitcoin miner that uses waste coal for energy reported a fourth-quarter revenue and loss that both came in well short of analysts' average estimate.
- Revenue rose to $17 million in the fourth quarter from $900,000 in the same period a year earlier, but fell short of estimates of $21.9 million, according to FactSet.
- Stronghold Digital reported an adjusted loss of 52 cents a share for the quarter, compared with analysts' estimates for a profit of 2 cents a share, according to FactSet.
- “Over the past few months, we have faced significant headwinds in our operations which have materially impacted recent financial performance and have led us to re-assess our near-term growth plans,” Co-Chairman and CEO Greg Beard said in a statement. “We no longer believe targeting 8.0 EH/s (exahash per second) by the end of 2022 is achievable, given the current circumstances, and we will focus on installing and optimizing the performance of the miners that we have already ordered while maximizing our financial flexibility.”
- Stronghold’s shares were down almost 27% in post-market trading on Tuesday even as the price of bitcoin rose 1.2%. Shares were down about 25% year to date as of Monday.
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Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.