Stronghold Digital Mining(US:SDIG)2022-05-17 03:07Financial Data and Key Metrics Changes - The company generated approximately $29 million in revenue for Q1 2022, representing a nearly 70% sequential increase from the previous quarter [12][38] - Adjusted EBITDA totaled approximately $3.8 million for the quarter, despite a $12 million non-cash impairment related to MinerVa equipment deposits [38] Business Line Data and Key Metrics Changes - The company mined 438 Bitcoin during the quarter, averaging a hash rate just under one exahash per second [13][38] - As of May 12, the hash rate capacity was approximately three exahash per second, with plans to reach approximately 4.2 exahash per second by year-end [14] Market Data and Key Metrics Changes - The company reclaimed approximately 279,000 tons of coal refuse during the quarter, aligning with its environmentally beneficial mission [13][39] - The company expects to generate about $35 million to $65 million of adjusted EBITDA over the next 12 months even if no Bitcoin is mined, based on current power prices [20] Company Strategy and Development Direction - The company emphasizes a vertically integrated business model to mitigate downside risks associated with Bitcoin price volatility [16] - The focus has shifted from aggressive growth to financial flexibility and returns, with no new miner purchases planned in the immediate future [32][87] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market conditions have led to several peers scaling back growth projections due to capital availability issues [14] - The company is positioned to be self-funded moving forward, which is expected to strengthen its position for future opportunities, especially with the upcoming halving event in 2024 [15] Other Important Information - The company has taken steps to improve liquidity, including a private placement raising $27 million and selling excess miners for approximately $17 million [26][28] - The Scrubgrass power plant has shown improvements, with average power output in April being 20% higher than the first quarter average [22] Q&A Session Summary Question: What is the current utilization rate? - The current utilization rate is approximately 2.3 out of 3 exahash, with factors such as installing delivered miners and moving miners to the joint venture datacenter affecting this rate [44] Question: What is the split between gross and net for the joint venture? - The ultimate split on the joint venture will be 35% to the JV, with presented numbers being gross [49] Question: What is the latest on resolving the MinerVa issues? - The situation with MinerVa is better than previously guided, with ongoing communications and attempts to resolve the issues [61][62] Question: How many Bitcoin have been sold this year? - The company has sold 635 Bitcoin year-to-date, with a thoughtful approach to future sales to cover capital expenditures [67] Question: How did the Panther Creek and Scrubgrass plants perform? - Panther Creek has been operating well, while Scrubgrass is expected to improve as upgrades are completed by the end of Q3 [75][106]