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Analyst Still Positive on Stronghold Digital Despite Miss, Citing Miner’s Low Costs
The bitcoin miner’s stock tumbled more than 30% after it missed earnings estimates and said it won’t reach its 2022 hashrate goal.
By Aoyon Ashraf
Updated May 11, 2023, 5:59 p.m. Published Mar 30, 2022, 2:01 p.m.
Bitcoin miner Stronghold Digital (SDIG), which uses waste coal for energy, remains one of the lowest-cost miners and is expected to get over its short-term setbacks, said an analyst for investment bank Compass Point.
- “While the near-term issues certainly impact our estimates for SDIG, the company remains one of the lowest cost BTC miners in the U.S., and we believe the management team's experience operating power assets will allow it to get over the hump with the Scrubgrass facility,” analyst Chase White wrote in a research note.
- The miner’s stock tumbled more than 30% on Monday post-market and was down a similar amount on Tuesday morning to $6.92 after the company reported fourth-quarter revenue and earnings that both came in well short of the analysts' consensus estimate. Stronghold also said that it will miss its original target of reaching 8.0 exahash per second of capacity by the end of the year.
- Compass Point’s White said the miss was largely driven by a substantially lower capacity utilization and higher cost at its Scrubgrass power plant in Pennsylvania. uncertainty around receiving new miners from MinerVa.
- White lowered his 12-month price target on Stronghold to $30 from $41 but maintained his buy rating on the stock.
- Ahead of the release of earnings results on March 29, an analyst for Wall Street investment bank DA Davidson lowered his price target for Stronghold by 40%, citing slower-than expected operational progress to date and supply chain challenges.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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