Stronghold Digital's report shows high losses

  • 15:15 Nov 10, 2022
Stronghold Digital's report shows high losses

Stronghold Digital reported a net loss of $49.6 million in the third quarter.

Such figures are very much at odds with what analysts predicted in a FactSet survey. The company said it had restructuring prospects, which led it to assume a loss of no more than $11.4 million. As for revenues, the result matched the forecasts and amounted to $24.7 million ($24.6 according to the analysts' estimates).

The liquidity amount, according to the miner, is $27 million. The CEO of Stronghold Digital, Greg Bird, noted:

Mining equipment prices are still far from the minimum point. There is a very high oversupply in the market.

Mining companies are facing a lot of problems at the same time: the increasing complexity of bitcoin mining, falling prices of the cryptocurrency, and the energy crisis. It has led to several bankruptcies in the industry.

As a reminder, the deal between Stronghold and Nothern Data for hosting services was closed in October. Miner agreed to pay $4.5 million.

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