Q2 2024 Stronghold Digital Mining Inc Earnings Call Transcript
Key Points
- Stronghold Digital Mining Inc (SDIG) received numerous bids for parts or all of the company, indicating strong market interest.
- PJM's capacity market base residual auction cleared at $270 per megawatt day, significantly up from last year, which will drive approximately $7 million of incremental revenue at Panther Creek.
- The waste coal tax credit in Pennsylvania was doubled from $4 per ton to $8 per ton through 2036, potentially adding $2 million to $4 million in annual cash flow starting in 2025.
- Bitcoin mining operations qualify for PJM's demand response and sync reserve programs, which could provide additional revenue streams.
- Stronghold Digital Mining Inc (SDIG) is exploring data center opportunities, leveraging its extensive land, power, fiber, and water resources, with potential for significant expansion.
- Revenue for the second quarter was $19.1 million, which may be considered low for some investors.
- GAAP net loss for the second quarter was $21.3 million, indicating financial challenges.
- Non-GAAP adjusted EBITDA was negative $0.3 million, showing operational inefficiencies.
- Stronghold Digital Mining Inc (SDIG) exited 17 megawatts of the Scrubgrass commitment, which could be seen as a reduction in capacity.
- The company is still in the process of evaluating strategic alternatives, which may create uncertainty for investors.
Good morning, and welcome to Stronghold Digital Mining's conference call for the second 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 second quarter of 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 home page. Joining us on today's call are Stronghold's Chairman and CEO, Greg Beard; and CFO, Matt Smith.
Before we begin, Alec Wilson from Gateway Group will make a brief introductory statement. Alec Wilson, please proceed.
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