The following is a summary of the Stronghold Digital Mining, Inc. (SDIG) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Stronghold Digital Mining reported Q3 2024 revenue of $11.2 million, down 42% sequentially and 37% year-over-year.

• GAAP net loss for the quarter was $22.7 million, with a non-GAAP adjusted EBITDA loss of $5.5 million.

• The company experienced a significant decrease in Bitcoin production, down about 35% from the previous quarter, primarily due to the Bitcoin halving event.

Business Progress:

• Stronghold announced a definitive merger with Bitfarms, aiming to create a pro forma company with an energy portfolio exceeding 950 megawatts by year-end 2025.

• They entered into two hosting agreements to high grade the fleet at their facilities, which will add 20,000 Bitcoin miners in total.

• Leadership changes include the CFO, Matt Smith, stepping down, but continuing in a consulting role.

Opportunities:

• The merger with Bitfarms provides an opportunity to leverage Bitfarms' expertise, enhance operational efficiency, and merge HPC/AI with Bitcoin mining operations.

• Additional opportunities may arise from capacity incrementally added by studies related to Stronghold assets.

• The hosting agreements for additional miners at Panther Creek and Scrubgrass are expected to incrementally increase revenue.

Risks:

• The significant impact of the Bitcoin halving event on production is a key risk, leading to a 35% reduction in Bitcoin output.

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