Stronghold Digital Mining, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated total operating revenues of $11.2 million, a decrease from $17.7 million in the same period of 2023. Cryptocurrency mining revenues specifically fell to $8.7 million from $12.7 million year-over-year. However, for the nine months ended September 30, 2024, total operating revenues increased to $57.8 million, up from $53.2 million in the prior year, driven by a rise in cryptocurrency mining revenues, which reached $45.0 million compared to $37.8 million in 2023.

Despite the revenue growth for the nine-month period, the company reported a net loss of $22.7 million for Q3 2024, slightly higher than the $22.3 million loss in Q3 2023. The net loss for the nine months ended September 30, 2024, was $38.1 million, a significant improvement from the $80.7 million loss reported in the same period of 2023. The accumulated deficit increased to $360.8 million as of September 30, 2024, compared to $331.6 million at the end of 2023.

Total operating expenses for the three months ended September 30, 2024, were $28.8 million, down from $37.4 million in Q3 2023. For the nine-month period, operating expenses decreased to $97.6 million from $103.1 million in the previous year. Key factors contributing to the reduction in expenses included a decrease in impairments on equipment deposits and lower fuel expenses, partially offset by increased general and administrative costs related to the ongoing merger with Bitfarms Ltd.

Strategically, Stronghold entered into a merger agreement with Bitfarms on August 21, 2024, expected to close in Q1 2025, pending regulatory approvals. This merger is anticipated to enhance the company's operational scale and financial position. Additionally, the company has been actively restructuring its operations, including the termination of certain service agreements and the introduction of new hosting contracts, which are expected to bolster revenue streams.

As of September 30, 2024, Stronghold's total assets were reported at $141.4 million, down from $174.3 million at the end of 2023, while total liabilities increased to $121.8 million from $78.4 million. The company’s stockholders' equity decreased significantly to $19.5 million from $43.4 million at the end of 2023, reflecting the ongoing financial challenges and strategic shifts within the organization.