NASDAQ:SDIG Stronghold Digital Mining Q2 2024 Earnings Report $2.81 0.00 (0.00%) As of 03/18/2025 Earnings HistoryForecast Stronghold Digital Mining EPS ResultsActual EPS-$0.74Consensus EPS -$0.41Beat/MissMissed by -$0.33One Year Ago EPSN/AStronghold Digital Mining Revenue ResultsActual Revenue$19.10 millionExpected Revenue$20.15 millionBeat/MissMissed by -$1.05 millionYoY Revenue GrowthN/AStronghold Digital Mining Announcement DetailsQuarterQ2 2024Date8/14/2024TimeN/AConference Call DateWednesday, August 14, 2024Conference Call Time11:00AM ETUpcoming EarningsStronghold Digital Mining's next earnings date is estimated for Wednesday, April 30, 2025, based on past reporting schedules. Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Stronghold Digital Mining Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 14, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning and welcome to Stronghold Digital Mining's Conference Call for the 2nd Quarter Ended June 30, 2024. My name is Josh and I will be your operator this morning. Before this call, Stronghold issued its results for the Q2 2024 in a press release, which is available in the Investors section of the company's website at www.strongholddigitalmining.com. You can find the link to the Investors section at the top of the homepage. Joining us on today's call are Stronghold's Chairman and CEO, Greg Beard and CFO, Matt Smith. Operator00:00:35Before we begin, Alec Wilson from Gateway Group will make a brief introductory statement. Alec Wilson, please proceed. Speaker 100:00:45Thank you, operator. Good morning, everyone, and welcome. Today's slide presentation, along with our earnings release and financial disclosures, were posted to our website earlier today and can be accessed on our website at www.strongholdigitalmining.com. Some statements we're making today may be considered forward looking statements under securities law and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward looking statements. Speaker 100:01:22For more detailed risks, uncertainties and assumptions relating to our forward looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission. We disclaim any obligation or undertaking to update forward looking statements to reflect circumstances or events that occur after the date the forward looking statements are made, except as required by law. We will also discuss non GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We expect to file our quarterly report on Form 10 Q on or around August 14, 2024, with the Securities and Exchange Commission, which sets forth detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption Risk Factors. You may access Stronghold's Securities and Exchange Commission filings for free by visiting the SEC website at ww. Speaker 100:02:31Sec.govorstronghold's Investor Relations website at ir. Strongholddigitalminding.com. I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Stronghold's website. Now I would like to turn the call over to Stronghold's Chairman and CEO, Greg Beard. Greg? Speaker 200:02:56Good morning, everyone, and thank you for joining us on our Q2 2024 earnings call. We will be referencing an associated slide presentation throughout the call that is available through the webcast and on the Investor Relations section of our corporate website. Let's start on Slide 3. As we previously announced on our Q1 earnings call, we initiated a formal review of strategic alternatives and that process is ongoing. To date, the company has received numerous bids for all or parts of the company and we are considering a wide range of alternatives to maximize shareholder value. Speaker 200:03:36These alternatives range from sales of all or part of the company, mergers, strategic financings and expansion of our available power potentially into other data center use cases. Moving to Slide 4. We are excited to announce several positive updates regarding our power strategy and assets. In July, PJM's capacity market base residual auction cleared at $2.70 per megawatt day, up more than 800% from last year. Panther Creek cleared 69 Megawatts and Scrubgrass cleared 76 Megawatts. Speaker 200:04:17We have since exited 17 megawatts of the scrubgrass commitment and retained 59 megawatts. We are working with advisors to evaluate exiting the rest of the scrubgrass capacity position because capacity payments and demand response are mutually exclusive. But at Panther Creek alone, we estimate that capacity payments will drive approximately $7,000,000 of incremental revenue between June 2025 May 2026 at 100% margin. We also have a positive update on waste coal tax credits. Last month in Pennsylvania's bipartisan budget, which was passed by the State House and Senate and signed into law by the governor, the waste coal tax credit was doubled from $4 per ton to $8 per ton through 2,036. Speaker 200:05:11This legislation highlights the importance of our reclamation activities and the bipartisan support that they have in Pennsylvania. And importantly, we estimate that this increase in the tax credit will represent an additional cash flow of $2,000,000 to $4,000,000 per year for Stronghold starting in 2025. Lastly, in April, PJM updated its guidance for co located loads like ours. Based on this guidance to date, we believe that our Bitcoin mining operations qualify for PJM's demand response and sink reserve programs, and we are currently in the process of registering the scrubgrass data center for these programs. Moving on to Slide 5. Speaker 200:05:56We have spent the last few months evaluating the expansion potential for our current assets. As a part of this process, we have engaged Applebee's Strategy Group to help us explore data center opportunities and uses for our assets. Some key value drivers for data centers are access to land, power, fiber and water, and we believe that our assets possess these qualities. We own 6 36 Acres of Scrubgrass and 117 Acres of Panther Creek, and we recently optioned an additional 11 40 Acres immediately adjacent to our Panther Creek property. We have entered into load studies with local utilities at both sites to understand how much power we can access and our first preliminary load study at Panther Creek recently came back and is supportive of bringing in an additional 2 50 megawatts. Speaker 200:06:51We are evaluating timing for the potential expansion and both have robust water supply, further and both have robust water supply, further enhancing the data center prospects for our sites. With that, I'll turn the call over to Matt Smith to discuss Q2 results. Speaker 300:07:18Thanks, Greg. Lastly, on Slide 6. Revenue for the 2nd quarter was 19,100,000 dollars with $18,800,000 from cryptocurrency operations on 299 Bitcoin mined, along with $300,000 revenue from energy operations during the quarter. GAAP net loss was $21,300,000 for the 2nd quarter and non GAAP adjusted EBITDA was negative $300,000 A reconciliation for those figures is included in the appendix. I will now turn the call back over to Greg for closing remarks. Speaker 200:07:52Thanks, Matt. At Stronghold, we own a portfolio of hard assets that are becoming increasingly more valuable. We are at the intersection of a tight power market reflected in the increased capacity auction pricing, increased demand for power from AI, HPC data center development in a market with power generation supply constraints. We are continuing to evaluate all strategic alternatives and look forward to updating you in the near future. Operator00:08:25Thank you for joining us today at Stronghold's earnings call. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallStronghold Digital Mining Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Stronghold Digital Mining Earnings HeadlinesStronghold Digital Mining (NASDAQ:SDIG) vs. Cipher Mining (NASDAQ:CIFR) Critical SurveyApril 20, 2025 | americanbankingnews.comUS-listed bitcoin miners shed $5 billion in market cap amid 13% revenue slumpApril 1, 2025 | msn.comHere’s How to Claim Your Stake in Elon’s Private Company, xAIEven though xAI is a private company, tech legend and angel investor Jeff Brown found a way for everyday folks like you… To partner with Elon on what he believes will be the biggest AI project of the century… Starting with as little as $500.April 27, 2025 | Brownstone Research (Ad)Stronghold Digital Mining completes merger with BitfarmsMarch 22, 2025 | investing.comBitfarms completes acquisition of Stronghold, strengthens US presenceMarch 17, 2025 | coinjournal.netBitcoin Miner Bitfarms Completes Acquisition of Stronghold Digital MiningMarch 17, 2025 | news.bitcoin.comSee More Stronghold Digital Mining Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Stronghold Digital Mining? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Stronghold Digital Mining and other key companies, straight to your email. Email Address About Stronghold Digital MiningStronghold Digital Mining (NASDAQ:SDIG), a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.View Stronghold Digital Mining ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 4 speakers on the call. Operator00:00:00Good morning and welcome to Stronghold Digital Mining's Conference Call for the 2nd Quarter Ended June 30, 2024. My name is Josh and I will be your operator this morning. Before this call, Stronghold issued its results for the Q2 2024 in a press release, which is available in the Investors section of the company's website at www.strongholddigitalmining.com. You can find the link to the Investors section at the top of the homepage. Joining us on today's call are Stronghold's Chairman and CEO, Greg Beard and CFO, Matt Smith. Operator00:00:35Before we begin, Alec Wilson from Gateway Group will make a brief introductory statement. Alec Wilson, please proceed. Speaker 100:00:45Thank you, operator. Good morning, everyone, and welcome. Today's slide presentation, along with our earnings release and financial disclosures, were posted to our website earlier today and can be accessed on our website at www.strongholdigitalmining.com. Some statements we're making today may be considered forward looking statements under securities law and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward looking statements. Speaker 100:01:22For more detailed risks, uncertainties and assumptions relating to our forward looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission. We disclaim any obligation or undertaking to update forward looking statements to reflect circumstances or events that occur after the date the forward looking statements are made, except as required by law. We will also discuss non GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We expect to file our quarterly report on Form 10 Q on or around August 14, 2024, with the Securities and Exchange Commission, which sets forth detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption Risk Factors. You may access Stronghold's Securities and Exchange Commission filings for free by visiting the SEC website at ww. Speaker 100:02:31Sec.govorstronghold's Investor Relations website at ir. Strongholddigitalminding.com. I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Stronghold's website. Now I would like to turn the call over to Stronghold's Chairman and CEO, Greg Beard. Greg? Speaker 200:02:56Good morning, everyone, and thank you for joining us on our Q2 2024 earnings call. We will be referencing an associated slide presentation throughout the call that is available through the webcast and on the Investor Relations section of our corporate website. Let's start on Slide 3. As we previously announced on our Q1 earnings call, we initiated a formal review of strategic alternatives and that process is ongoing. To date, the company has received numerous bids for all or parts of the company and we are considering a wide range of alternatives to maximize shareholder value. Speaker 200:03:36These alternatives range from sales of all or part of the company, mergers, strategic financings and expansion of our available power potentially into other data center use cases. Moving to Slide 4. We are excited to announce several positive updates regarding our power strategy and assets. In July, PJM's capacity market base residual auction cleared at $2.70 per megawatt day, up more than 800% from last year. Panther Creek cleared 69 Megawatts and Scrubgrass cleared 76 Megawatts. Speaker 200:04:17We have since exited 17 megawatts of the scrubgrass commitment and retained 59 megawatts. We are working with advisors to evaluate exiting the rest of the scrubgrass capacity position because capacity payments and demand response are mutually exclusive. But at Panther Creek alone, we estimate that capacity payments will drive approximately $7,000,000 of incremental revenue between June 2025 May 2026 at 100% margin. We also have a positive update on waste coal tax credits. Last month in Pennsylvania's bipartisan budget, which was passed by the State House and Senate and signed into law by the governor, the waste coal tax credit was doubled from $4 per ton to $8 per ton through 2,036. Speaker 200:05:11This legislation highlights the importance of our reclamation activities and the bipartisan support that they have in Pennsylvania. And importantly, we estimate that this increase in the tax credit will represent an additional cash flow of $2,000,000 to $4,000,000 per year for Stronghold starting in 2025. Lastly, in April, PJM updated its guidance for co located loads like ours. Based on this guidance to date, we believe that our Bitcoin mining operations qualify for PJM's demand response and sink reserve programs, and we are currently in the process of registering the scrubgrass data center for these programs. Moving on to Slide 5. Speaker 200:05:56We have spent the last few months evaluating the expansion potential for our current assets. As a part of this process, we have engaged Applebee's Strategy Group to help us explore data center opportunities and uses for our assets. Some key value drivers for data centers are access to land, power, fiber and water, and we believe that our assets possess these qualities. We own 6 36 Acres of Scrubgrass and 117 Acres of Panther Creek, and we recently optioned an additional 11 40 Acres immediately adjacent to our Panther Creek property. We have entered into load studies with local utilities at both sites to understand how much power we can access and our first preliminary load study at Panther Creek recently came back and is supportive of bringing in an additional 2 50 megawatts. Speaker 200:06:51We are evaluating timing for the potential expansion and both have robust water supply, further and both have robust water supply, further enhancing the data center prospects for our sites. With that, I'll turn the call over to Matt Smith to discuss Q2 results. Speaker 300:07:18Thanks, Greg. Lastly, on Slide 6. Revenue for the 2nd quarter was 19,100,000 dollars with $18,800,000 from cryptocurrency operations on 299 Bitcoin mined, along with $300,000 revenue from energy operations during the quarter. GAAP net loss was $21,300,000 for the 2nd quarter and non GAAP adjusted EBITDA was negative $300,000 A reconciliation for those figures is included in the appendix. I will now turn the call back over to Greg for closing remarks. Speaker 200:07:52Thanks, Matt. At Stronghold, we own a portfolio of hard assets that are becoming increasingly more valuable. We are at the intersection of a tight power market reflected in the increased capacity auction pricing, increased demand for power from AI, HPC data center development in a market with power generation supply constraints. We are continuing to evaluate all strategic alternatives and look forward to updating you in the near future. Operator00:08:25Thank you for joining us today at Stronghold's earnings call. You may now disconnect.Read morePowered by