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1. Company Snapshot

1.a. Company Description

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on mining Bitcoin in the United States.It also operates coal refuse power generation facilities.The company was incorporated in 2021 and is headquartered in New York, New York.

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1.b. Last Insights on SDIG

Stronghold Digital Mining, Inc.'s recent performance was negatively driven by a Q3 loss of $1.12 per share, exceeding the Zacks Consensus Estimate of a loss of $0.62. This compares to a loss of $0.05 per share a year ago. The company's CFO, Matthew Smith, will resign on November 15, 2024, after the Q3 earnings release, which may indicate leadership instability. Additionally, the company's revenue fell short of estimates, contributing to the negative performance.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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VisionSys AI Inc. Appoints Tom Trowbridge as Senior Advisor to Drive Digital Currency Treasure Strategy

Oct -10

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Bitfarms completes acquisition of Stronghold Digital Mining

Mar -17

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Stronghold Urges Stockholders to Follow the “FOR” Recommendation of ISS and Glass Lewis and Support the Pending Merger With Bitfarms at the Upcoming Special Meeting

Feb -19

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STRONGHOLD DIGITAL INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Stronghold Digital Mining, Inc. - SDIG

Feb -10

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The Rosen Law Firm, P.A. Announces Proposed Class Action Settlement on Behalf of Purchasers of Class A Common Stock of Stronghold Digital Mining, Inc. - SDIG

Jan -20

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Stronghold Digital Mining, Inc. (SDIG) Reports Q3 Loss, Lags Revenue Estimates

Nov -13

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Stronghold Announces Third Quarter 2024 Operating and Financial Results

Nov -13

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Stronghold Digital Mining Sets Third Quarter 2024 Earnings Conference Call for Wednesday, November 13 at 8:30 a.m. Eastern Time

Nov -04

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (23.98%)

6. Segments

Cryptocurrency

Expected Growth: 25.4%

Stronghold Digital Mining's cryptocurrency, leveraging blockchain technology, is poised for growth driven by increasing adoption of decentralized finance, rising demand for secure and transparent transactions, and growing institutional investment in digital assets.

Energy

Expected Growth: 10.2%

Stronghold Digital Mining's renewable energy source from waste coal is poised for growth driven by increasing demand for clean energy, government incentives, and declining renewable energy costs.

7. Detailed Products

Bitcoin Mining

Stronghold Digital Mining, Inc. offers bitcoin mining services, utilizing its fleet of miners to solve complex mathematical equations, validating transactions on the Bitcoin blockchain, and earning newly minted bitcoins as a reward.

Colocation Services

Stronghold Digital Mining, Inc. provides colocation services, offering a secure, reliable, and scalable infrastructure for hosting cryptocurrency mining equipment, ensuring optimal operating conditions and minimizing downtime.

Data Center Services

Stronghold Digital Mining, Inc. operates a network of data centers, providing a secure, reliable, and scalable infrastructure for cryptocurrency mining, high-performance computing, and data storage.

Cryptocurrency Hosting

Stronghold Digital Mining, Inc. offers cryptocurrency hosting services, providing a secure, reliable, and scalable infrastructure for hosting cryptocurrency nodes, wallets, and other cryptocurrency-related applications.

Mining Pool Services

Stronghold Digital Mining, Inc. operates a mining pool, allowing miners to combine their computing power, increasing their chances of solving complex mathematical equations and earning cryptocurrency rewards.

8. Stronghold Digital Mining, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Stronghold Digital Mining, Inc. has a low threat of substitutes due to its unique business model and lack of direct competitors in the digital mining space.

Bargaining Power Of Customers

Stronghold Digital Mining, Inc. has a medium bargaining power of customers due to the presence of a few large customers, but the company's unique services and high switching costs mitigate this power.

Bargaining Power Of Suppliers

Stronghold Digital Mining, Inc. has a low bargaining power of suppliers due to its ability to source equipment and services from multiple vendors, reducing dependence on any one supplier.

Threat Of New Entrants

Stronghold Digital Mining, Inc. faces a high threat of new entrants due to the relatively low barriers to entry in the digital mining space, although the company's established brand and expertise provide some protection.

Intensity Of Rivalry

Stronghold Digital Mining, Inc. operates in a moderately competitive industry, with a few established players and some new entrants, but the company's unique business model and high barriers to entry mitigate the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.15%
Debt Cost 17.51%
Equity Weight 52.85%
Equity Cost 17.51%
WACC 17.51%
Leverage 89.21%

11. Quality Control: Stronghold Digital Mining, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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TeraWulf

A-Score: 4.7/10

Value: 6.0

Growth: 4.3

Quality: 3.5

Yield: 5.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Greenidge Generation Holdings

A-Score: 3.9/10

Value: 9.8

Growth: 4.0

Quality: 5.9

Yield: 0.0

Momentum: 3.5

Volatility: 0.3

1-Year Total Return ->

Stock-Card
Bitcoin Depot

A-Score: 3.9/10

Value: 6.3

Growth: 2.1

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Applied Digital

A-Score: 3.8/10

Value: 6.2

Growth: 3.4

Quality: 3.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

Stock-Card
Bit Digital

A-Score: 3.8/10

Value: 7.4

Growth: 6.4

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Stock-Card
Stronghold Digital Mining

A-Score: 2.7/10

Value: 8.4

Growth: 2.8

Quality: 1.8

Yield: 0.0

Momentum: 2.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.81$

Current Price

2.81$

Potential

-0.00%

Expected Cash-Flows