Stronghold Digital Mining achieved 3.8 EH/s of actual hash rate capacity in Q4 2023, up from installing 5,000 new Bitcoin miners. The company generated 599 Bitcoin for the quarter, a 34% year-over-year increase. Stronghold benefited from improving Bitcoin mining economics, with higher Bitcoin prices and transaction fees offsetting the impact of the hash rate increase.
With existing infrastructure capable of supporting over 7 EH/s, Stronghold eyes hash rate capacity expansion through options like utilizing its Canaan miner purchase option.
The company secured low-cost power agreements anticipated to yield $10-12/MWh costs. Additionally, Stronghold registered its Scrubgrass Plant carbon capture project on Puro’s registry, advancing towards accreditation.
For Q4 2023, Stronghold reported $21.7 million in revenue, with Bitcoin mining contributing $15.1 million. The company reduced annual fixed costs by $33 million (37%) compared to 2022. As of February 2024, Stronghold had $10.2 million in cash/Bitcoin and $55.8 million in debt outstanding, positioning it for future growth opportunities.
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