Shares for Stronghold Digital Mining closed nearly 11% higher on Thursday as the bitcoin mining company announced that its technologies would expand sooner than anticipated. The stock finished at $8.08, marking a year-to-date increase of approximately 69%.
In its second-quarter results, Stronghold Digital Mining stated that it expects to achieve a hash rate of four exahashes per second (4 EH/s) by September 1st. The hash rate is a crucial metric that measures the power of a blockchain network.
During the quarter, the company successfully mined 626 bitcoin and generated $18.2 million in revenue. However, it also reported a loss of $11.7 million.
Chief Executive Greg Beard expressed confidence in the company's future prospects, stating, "We expect to have 4 EH/s of installed hash rate capacity at our Panther Creek and Scrubgrass data centers in the coming weeks. This represents a significant milestone for the Company, and we believe that we are well positioned to grow revenue and cash flow and create equity value going forward."
Beard further highlighted the advantages of Stronghold Digital Mining's vertically integrated business model, which includes wholly owned power plants and data centers. He emphasized that this model would prove beneficial in light of the upcoming Bitcoin halving, projected to occur in April 2024. Bitcoin halving takes place approximately every four years and involves reducing the mining reward by half to sustain the cryptocurrency's scarcity and counteract inflation.
Stronghold Digital Mining's progress in expanding its technological capabilities ahead of schedule indicates its potential for continued growth in the highly competitive bitcoin mining industry.
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