Stronghold Mining releases first quarter earnings report

Stronghold, which uses coal waste to mine bitcoins, announced financial results for the first quarter of 2022.

The organization beat the consensus estimate of $26.2 million with an adjusted net loss per share of $0.66. Stronghold also has cash proceeds of $27 million from a major bond issue. Investors are guaranteed a minimum return equal to the original investment.

Greg Beard, co-chairman and CEO of Stronghold, commented on the results:

“Earlier this year we decided to de-emphasize growth to focus on capital controls and financial flexibility, and recent operational and financial initiatives, including a recent bond issue, have helped reduce the risk of our financial needs despite the recent volatility in the cryptocurrency markets.”

The company has “$47 million in cash and cash equivalents, as well as unrestricted BTC holdings and more than $60 million in liquidity.”

Stronghold furor thanks to coal waste

Stronghold burns coal left over from centuries of mining in Pennsylvania. In this way, the company prevents soil poisoning and the release of harmful chemicals into the atmosphere.

The income statement indicated that the organization disposed of 279,000 tons of coal waste. However, this is more toxic to the environment than the coal used recently, which contains mercury, sulfur, lead, and many other chemicals.

It also requires more energy to burn waste than conventional coal because the process takes place in a fluidized bed.

After China left the industry last year due to a ban on bitcoin mining in the country, many miners flocked to the United States. Some headed to Texas, where natural gas is produced, and some to New York, where the energy source for mining has been renewed fossil fuel plants. This has raised concerns among environmental lobbying groups and specific sectors of the government.

Recall that in 2014, Atlas Holdings purchased a defunct coal-fired power plant in the Finger Lakes area of New York City. The company turned it into a natural gas plant before establishing a mining facility that polluted water and air.

In Montana, Marathon Digital Holdings has partnered with Atlas Holdings to, according to Marathon CEO Fred Thiel, get access to more electricity at a reduced price.

Another look at the actions of the mining companies

Stronghold co-chairman William B. Spence views the companies’ actions as participation in the land reclamation process.

“Sometimes the perfect is the enemy of the good. I feel like I’m doing something very good. Of course, our actions are not perfect, but right now that’s all we can do,” he said in the report.

In February, Mike Novogratz, CEO of Galaxy Digital, announced an initiative to clean up the image of cryptocurrency mining as polluting the planet as investors put pressure on mining companies to align their operations with broader environmental, social and governance reforms.

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