Stronghold Digital Mining, Inc. (referred to as “Stronghold” or the “Company”) has released significant updates concerning its operational performance and financial results today.
Bitcoin Mining Update
In March 2024, Stronghold accomplished a notable milestone by mining 179 Bitcoin, resulting in approximately $0.1 million in energy revenue. This achievement translates to the production of roughly 180 Bitcoin-equivalents, reflecting a 4% increase from the previous month’s production of 173 Bitcoin-equivalents in February 2024. The Company’s revenue during March reached an estimated $11.1 million, marking a significant surge of 37% compared to February 2024, and an impressive 94% increase from March 2023.
The primary driver behind this notable sequential growth was the higher hash price of $0.109 per TH/s per day observed in March, in contrast to $0.084 in February. This upward trajectory in hash price was predominantly influenced by a 35.8% increase in the price of Bitcoin. However, this growth was partially offset by lower transaction fees, averaging 4.6% in March compared to 5.5% in February. Additionally, there was a 4.3% sequential increase in network hash rate. Stronghold’s average hash rate demonstrated a commendable improvement, reaching 3.6 EH/s in March, which is a 4.7% increase from the 3.4 EH/s average hash rate observed in February. Moreover, this figure exhibits a remarkable 62.6% surge from the 2.2 EH/s average hash rate recorded in March 2023.
The Company’s decision to turn off its Scrubgrass Plant in March 2024 was influenced by persistently low power prices and the anticipation of continued economic viability during the forthcoming shoulder months. Consequently, Stronghold opted to import electricity for its mining operations pursuant to its previously announced Electricity Sales and Purchase Agreement with Champion Energy Services, LLC. The Scrubgrass Plant is anticipated to remain offline until such time that operating it becomes economically favorable compared to purchasing electricity.
Stronghold’s strategic adjustments reflect its proactive approach in optimizing operational efficiency and capitalizing on prevailing market conditions to drive sustainable growth and profitability in the dynamic landscape of digital mining.
