Shares of Stronghold Digital (SDIG) tumbled more than 25% after hours after the bitcoin miner that uses waste coal for energy reported fiscal fourth quarter revenues and earnings that came in well short of analyst estimates.
- Revenues rose from $0.9 million in last year’s fiscal fourth quarter to $17.0 million this year, but fell short of estimates of $21.9 million, according to FactSet.
- Stronghold’s fourth quarter adjusted earnings per share came in at at a loss of 52 cents a share, versus the average analyst estimate of a gain of $0.002, according to FactSet.
- “Over the past few months, we have faced significant headwinds in our operations which have materially impacted recent financial performance and have led us to re-assess our near-term growth plans,” said co-chairman and CEO Greg Beard in a statement. “We no longer believe targeting 8.0 EH/s by the end of 2022 is achievable, given the current circumstances, and we will focus on installing and optimizing the performance of the miners that we have already ordered while maximizing our financial flexibility.”
- Stronghold’s shares were down almost 27% in post-market trading on Tuesday even as bitcoin prices rose 1.2%. Shares were down about 25% year to date as of Monday.