Stronghold Digital Mining(SDIG) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $19.1 million, with $18.8 million from cryptocurrency operations and $0.3 million from energy operations [11] - GAAP net loss for the quarter was $21.3 million, while non-GAAP adjusted EBITDA was negative $0.3 million [11] Business Line Data and Key Metrics Changes - The company mined 299 Bitcoin during the quarter, contributing to the cryptocurrency revenue [11] Market Data and Key Metrics Changes - PJM's capacity market base residual auction cleared at $270 per megawatt day, an increase of over 800% from the previous year [7] - Panther Creek cleared 69 megawatts and Scrubgrass cleared 76 megawatts, with plans to exit 17 megawatts of the Scrubgrass commitment [7] Company Strategy and Development Direction - The company is undergoing a formal review of strategic alternatives, including potential sales, mergers, and expansion into other data center use cases [6] - The waste coal tax credit in Pennsylvania was doubled from $4 per ton to $8 per ton, expected to generate an additional cash flow of $2 million to $4 million per year starting in 2025 [8] - The company is exploring data center opportunities and has engaged Appleby Strategy Group for this purpose, focusing on the potential for expansion at their current sites [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the intersection of a tight power market and increased demand for power from AI and HPC data center development, indicating a favorable environment for the company's assets [12] - The company is continuing to evaluate all strategic alternatives and anticipates providing updates in the near future [12] Other Important Information - The company owns 636 acres of Scrubgrass and 117 acres of Panther Creek, with an additional 1,140 acres optioned adjacent to Panther Creek [9] - Preliminary load studies indicate potential for an additional 250 megawatts at Panther Creek [9] Q&A Session Summary - No specific questions or answers were provided in the transcript for the Q&A session.