Stronghold loses 25 %after the conclusion of business because Q4 profits and revenue miss Mark
Stronghold loses 25 %after the conclusion of business because Q4 profits and revenue miss Mark
- Stronghold, despite an initial delivery period until December 31, 2021, received around 3,300 out of a total of 15,000 miners ordered
- Stronghold is still committed to environmentally friendly mining companies, emphasized the managers
Hochburg Digital Mining (ticker: Sdig) lost more than 25 %in post-exchangeable trade, after the crypto mining company, which used coal waste to dig Bitcoin, had reported lower profits than expected for the fourth quarter.
The adjusted profit per share of Stronghold for the fourth quarter 2021, according to the company, shows a loss of $ 0.52 per share test report . Analysts predicted a profit of $ 0.002
sales rose from $ 900,000 in the fourth quarter of 2020 to $ 17 million in 2021 and failed to fail to do $ 21.9 million by analysts. The increase in sales in 2021 "is primarily due to higher income from energy generation and crypto-asset mining," the report says.
The company recorded a net loss of $ 17.5 million for the fourth quarter of 2021 compared to a net profit of $ 200,000 for the same quarter in 2020. Stronghold for 2021 was $ 27.3 million compared to a net loss of $ 100,000 in the same period.
"[I] I would like to make it clear to everyone that our recent results do not meet the expectations that we have at Stronghold and are not representative of the potential we want to achieve," said Gregory Bear, Co-Chairman and CEO from Stronghold, during the company's call on Tuesday afternoon. "I am firmly convinced that Stronghold has the basics to be a successful and differentiated company."
executives of Stronghold said that losses were due to delivery delays. The hash rate was negatively influenced by delays in the miner deliveries, according to the report.
To date, Stronghold has received about 3,300 of the 15,000 miners who were appointed by Minerva, a semiconductor company based in Canada, despite an initial delivery period until December 31, 2021. Stronghold now expects the miners to be delivered by April 30, 2022. said executives."We also rethink our procurement strategy for miners in order to focus more on buying spot purchases than on deliveries," said Beard. "We believe that deliveries have an increased risk profile, since potential delays during the delivery date and uncertainties with regard to Bitcoin's fundamental data can occur at the time of the start."
Stronghold gave his Nasdaq debut in October 2021 at an opening price of $ 26.50-55.8 % higher than the expected price range between $ 16 and $ 18 per share.
The managers remained positive and insisted that the company's core task remains intact.
"We focus on improving the environment," said Beard. "Our vertically integrated business model offers low costs, we have a considerable size and our management team is strongly aimed at participating of over 50 % in the company."
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