Stronghold Digital Mining, Inc. (SDIG) has made significant strides in expanding its Bitcoin mining capacity by finalizing agreements for the acquisition of 5,000 Bitcoin miners on December 26, 2023, at a total cost of approximately $8.5 million. This strategic move is set to enhance Stronghold’s cumulative hash rate capacity by around 600 PH/s, boasting an average efficiency of 25 J/T.
The purchased miners consist of 2,800 new Bitmain S19K Pro miners (115-120 TH/s per miner, 23 J/T efficiency) procured from Luxor Technology Corporation, along with 1,100 new MicroBT Whastminer M50 miners (120 TH/s per miner, 27 J/T efficiency) from Luxor. Additionally, Stronghold acquired 1,100 new Avalon A1346 miners (123 TH/s per miner, 28.9 J/T efficiency) from Canaan Creative Global Pte. Ltd. The funding for these acquisitions was facilitated through the proceeds from Stronghold’s recently disclosed private placement. The delivery of all acquired miners is anticipated no later than January 2024.
In a notable development, Stronghold secured the option to purchase an additional 2,500 Avalon A1466 miners, with expected specifications of 140-150 TH/s per miner and 21.5 J/T efficiency, between now and December 2024 for $12 per TH/s. These A1466 miners are slated to be available starting in April 2024.
In its December Bitcoin mining update, Stronghold reported mining 207 Bitcoin during the month, generating approximately $0.4 million in energy revenue. This revenue, equivalent to about 9 additional Bitcoin based on the average price of Bitcoin during December, resulted in approximately 216 Bitcoin-equivalent production for the month, reflecting a 2% increase compared to November’s 212 Bitcoin-equivalent production.
Stronghold achieved an estimated revenue of $8.5 million in December, marking its highest monthly revenue in 2023. The sequential increase was attributed to a higher hash price of $0.10 in December compared to $0.08 in November. This uptick in hash price was fueled by a 16% rise in the average daily BTC price and increased transaction fees/block subsidies averaging 26% in December compared to 14% in November. These gains were partially offset by a 6% increase in the network hash rate.
