Stronghold Digital Mining (SDIG) Issues January Bitcoin Mining and Carbon Capture Update

Stronghold Digital Mining, Inc. (NASDAQ: SDIG) today provided the following updates regarding its operations and financial performance:

Bitcoin Mining Update

Stronghold mined 192 Bitcoin in January 2024 and generated approximately $0.4 million in energy revenue, which represents the equivalent of approximately 10 additional Bitcoin based on the average price of Bitcoin during the month. This equates to approximately 202 of Bitcoin-equivalent production in January 2024, down approximately 6% from December 2023.

The Company generated an estimated $8.0 million of revenue during January. The primary driver of the sequential decrease was a lower hash price of $0.08 per TH/s per day in January compared to $0.10 in December, which was due to lower transaction fees, averaging 12% in January compared to 26% in December, and 4% sequential growth in network hash rate.

Carbon Capture Update

Stronghold continues to be encouraged by test results from its first Karbolith. The Company has received third-party lab results from 12 additional samples of beneficial use ash that were taken after the Company’s December 2023 investor day. The results demonstrated carbonation of up to 14% of starting weight of dry ash, with carbonation of approximately 10% on average. Stronghold recently began erecting its second Karbolith, which is expected to be operational by the end of February, and the Company is continuing its work on optimizing ash placement, its operations, and Karbolith spacing to maximize carbon removals. The Company expects construction time to be approximately two weeks and for the Karbolith to cost approximately $60,000, a meaningful reduction compared to the first Karbolith.

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