Stronghold Digital (SDIG) reported first-quarter revenue of $28.7 million, above analysts' consensus estimate of $26.2 million, FactSet reports. However, the adjusted net loss of 66 cents per share exceeded the consensus estimate for an adjusted net loss of 8 cents per share.
On May 15, the company, which uses coal waste to generate energy, said it raised $27 million in cash through the issuance of debt securities. In total, Stronghold said it has $47 million in cash and cash equivalents, as well as unrestricted bitcoin holdings and more than $60 million in liquidity.
"Stronghold believes that its liquidity position, combined with anticipated operating cash flow, will be sufficient to meet all existing obligations and fund operations," the company said in a statement. "The company also believes that additional liquidity can be generated through proceeds related to the management and optimization of the Bitcoin mining fleet, including potential miner sales, and through additional equipment financing arrangements, if needed."
In its first quarter report, Stronghold reiterated its recent guidance to exit 2022 with an installed hash rate capacity of 4.1 EH/s.
Following its fourth-quarter earnings report, Stronghold shares plunged as the company said it would not be able to meet its earlier target of 8.0 EH/s of compute capacity by the end of 2022.
Stronghold shares fell about 1% to $2.09 in after-hours trading.