Crypto-mining: Stronghold Mining publishes its first quarter financial results

Stronghold Digital Mining, the large cryptocurrency company based in Pennsylvania in the United States, had revenue of $ 28.7 million in the first quarter.

Stronghold, which uses coal waste for Bitcoin mining, has just announced its financial results for the first quarter of 2022.

First interesting point; the company had a net loss of $ 0.66 per share. share, which is well above its latest estimate of $ 0.08 per share. shares.

Stronghold also has $ 27 million in cash from the share issue. Note that the holders of these securities achieve a minimum return equal to the initial investment.

“Earlier this year, Stronghold shifted its focus away from growth to capital discipline and financial flexibility. In addition, its recent operational and financial initiatives, including our recent issuance of banknotes, have helped reduce the risks associated with our financing needs. of the recent increase in cryptocurrency volatility, ”commented Greg Beard, co-chairman and CEO of Stronghold.

Stronghold wants to remove “dirty energy”

To carry out its cryptocurrency operations in Pennsylvania, Stronghold burns centuries-old coal waste. This prevents these piles of debris, which can sometimes reach a depth of sixty meters, from poisoning the ground and releasing harmful chemicals into the atmosphere.

According to its quarterly report, the company disposed of 279,000 tons of coal residues.

However, coal residues are more toxic to the environment than “new coal”. These contain mercury, sulfur and lead and many other harmful active ingredients.

To convert them into energy, society must burn them in what is called a fluidized bed. This is a process that requires more energy than burning traditional coal.

Since China’s ban on cryptocurrency mining in October last year, many miners have moved to the United States, some to Texas, where stranded natural gas is a resource, and others to New York, where fuel-powered fossil fuels are the first source of energy. This has given rise to concerns from environmental organizations and several public authorities.

In 2014, Atlas Holdings acquired a former coal plant in New York’s Finger Lakes region. The company then turned it into a natural gas plant before setting up a crypto-mine unit, which raises questions about the risks of water and air pollution.

In a statement to The Wall Street Journal, Fred Thiel, CEO of Marathon Digital Holdings, revealed that his company was collaborating with a struggling coal-fired power plant to access a large amount of electricity at a lower price.

Another view of things

Stronghold co-president William B. Spence, however, views things differently. In fact, the entrepreneur perceives his business as a land development project with a secondary activity of Bitcoin mining. “Sometimes perfection is the enemy of the good,” he said.

“I think what I do is very good. It’s not perfect, but right now it’s the best we can do,” he said in a post.

In February, Mike Novogratz, CEO of Galaxy Digital, launched a project aimed at combating the idea that cryptocurrency is “a dirty industry”.

Note that for several years, investors have been urging cryptocurrency companies to adhere to environmental, social and managerial standards.

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