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Stronghold Digital Mining, Inc(SDIG). has released its unaudited financial results for the first quarter of 2023, revealing a net loss of $46.7 million in a challenging market environment. Despite the company's revenue declining to $17.3 million during the quarter, it continues to navigate the evolving landscape of digital currencies and mining operations.
Condensed Consolidated Balance Sheets
The company's financial position as of March 31, 2023, indicates total assets of $189.1 million, compared to $217 million at the end of 2022. The decrease can be attributed to changes in cash and cash equivalents, digital currencies, accounts receivable, and other current assets.
tronghold Digital Mining reported operating revenues of $17.3 million for the first quarter of 2023, marking a decrease from $29.4 million during the same period in 2022. The breakdown of operating revenues includes cryptocurrency mining, energy sales, cryptocurrency hosting, capacity, and other sources.
However, operating expenses totaled $31.9 million, a reduction from $58.3 million in the first quarter of 2022. The net operating loss for Q1 2023 was $14.6 million, compared to $28.9 million in Q1 2022.
Condensed Consolidated Statements of Stockholders' Equity
The company's stockholders' equity reached $82.2 million as of March 31, 2023, compared to $83 million at the end of 2022. Accumulated deficits increased from $240.4 million to $290.8 million, and additional paid-in capital rose to $373 million from $323.5 million.
Condensed Consolidated Statements of Cash Flows
Operating activities resulted in a net cash outflow of $3.3 million for Q1 2023, an improvement compared to the net cash outflow of $4.2 million in the same period last year. Investing activities amounted to a net cash outflow of $13.7 thousand, and financing activities generated a net cash outflow of $3.6 million.
Stronghold Digital Mining's cash and cash equivalents decreased from $13.3 million at the beginning of the quarter to $6.4 million at the end.
Despite the challenges faced in the cryptocurrency market, Stronghold Digital Mining, Inc. remains committed to optimizing its operations and adapting to the ever-changing dynamics of the industry. The company's ongoing efforts are aimed at achieving sustainable growth and financial stability in the coming quarters.