Stronghold Digital Mining Inc (SDIG) 2024 Q2 法說會逐字稿

Good morning, and welcome to Stronghold Digital Mining's conference call for the second quarter ended June 30, 2024. My name is Josh, and I will be your operator this morning. Before this call, Stronghold issued its results for the second quarter of 2024 in a press release, which is available in the Investors section of the company's website at www.strongholddigitalmining.com. You can find the link to the Investors section at the top of the home page. Joining us on today's call are Stronghold's Chairman and CEO, Greg Beard; and CFO, Matt Smith.

早安，歡迎參加 Stronghold Digital Mining 截至 2024 年 6 月 30 日的第二季電話會議。我叫喬什，今天早上我將成為您的接線生。在此電話會議之前，Stronghold 在新聞稿中發布了 2024 年第二季的業績，該新聞稿可在該公司網站 www.strongholddigitalmining.com 的投資者部分查看。您可以在主頁頂部找到“投資者”部分的連結。參加今天電話會議的還有 Stronghold 董事長兼執行長 Greg Beard；和首席財務官馬特·史密斯。

Before we begin, Alec Wilson from Gateway Group will make a brief introductory statement. Alec Wilson, please proceed.

在我們開始之前，Gateway Group 的 Alec Wilson 將做簡短的介紹性演講。亞歷克威爾遜，請繼續。

Thank you, operator. Good morning, everyone, and welcome. Today's slide presentation, along with our earnings release and financial disclosures, were posted to our website earlier today and can be accessed on our website at www.strongholddigitalmining.com.

謝謝你，接線生。大家早安，歡迎光臨。今天的幻燈片演示以及我們的收益發布和財務披露已於今天早些時候發佈到我們的網站上，您可以在我們的網站 www.strongholddigitalmining.com 上訪問。

Some statements we're making today may be considered forward-looking statements under securities law and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements.

根據證券法，我們今天所做的一些聲明可能被視為前瞻性聲明，並涉及許多風險和不確定性。因此，我們提醒您，有許多因素（其中許​​多因素超出了我們的控制範圍）可能導致實際結果和事件與前瞻性陳述中描述的結果和事件有重大差異。

For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

有關我們前瞻性陳述的更詳細的風險、不確定性和假設，請參閱我們向美國證券交易委員會提交的收益報告和公開文件中的揭露內容。我們不承擔任何更新前瞻性陳述以反映前瞻性陳述做出之日後發生的情況或事件的義務或承諾，除非法律要求。

We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We expect to file our quarterly report on Form 10-Q on or around August 14, 2024, with the Securities and Exchange Commission, which sets forth detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified under the caption Risk Factors. You may access Stronghold's Securities and Exchange Commission filings for free by visiting the SEC website at www.sec.gov or Stronghold's Investor Relations website at ir.strongholddigitalmining.com.

我們還將討論非 GAAP 財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的揭露以及收益報告中適用的 GAAP 指標的調整表。我們預計於 2024 年 8 月 14 日左右向美國證券交易委員會提交 10-Q 表格季度報告，其中詳細披露和描述了我們的業務以及不確定性和其他可變情況，包括但不包括僅限於“風險因素”標題下確定的風險和不確定性。您可以造訪 SEC 網站 www.sec.gov 或 Stronghold 投資者關係網站 ir.strongholddigitalmining.com 免費取得 Stronghold 的證券交易委員會備案文件。

I would like to remind everyone that this call is being recorded and will be made available for replay via link available in the Investor Relations section of Stronghold's website.

我想提醒大家，本次電話會議正在錄音，並將透過 Stronghold 網站投資者關係部分的連結進行重播。

Now, I would like to turn the call over to Stronghold's Chairman and CEO, Greg Beard. Greg?

現在，我想將電話轉給 Stronghold 的董事長兼執行長 Greg Beard。格雷格？

Good morning, everyone, and thank you for joining us on our second-quarter 2024 earnings call. We will be referencing an associated slide presentation throughout the call that is available through the webcast and on the Investor Relations section of our corporate website.

大家早安，感謝您參加我們的 2024 年第二季財報電話會議。我們將在整個電話會議中引用相關的幻燈片演示文稿，該幻燈片可透過網路廣播和我們公司網站的投資者關係部分取得。

Let's start on slide 3. As we previously announced on our Q1 earnings call, we initiated a formal review of strategic alternatives, and that process is ongoing. To date, the company has received numerous bids for all or parts of the company, and we are considering a wide range of alternatives to maximize shareholder value. These alternatives range from sales of all or part of the company, mergers, strategic financings, and expansion of our available power, potentially into other data center use cases.

讓我們從幻燈片 3 開始。正如我們之前在第一季財報電話會議上宣布的那樣，我們啟動了對戰略替代方案的正式審查，並且該過程正在進行中。迄今為止，該公司已收到對公司全部或部分業務的大量投標，我們正在考慮各種替代方案，以最大限度地提高股東價值。這些替代方案包括出售公司全部或部分業務、合併、策略融資以及擴展我們的可用能力（可能擴展到其他資料中心用例）。

Moving to slide 4. We are excited to announce several positive updates regarding our power strategy and assets. In July, PJM's capacity market base residual auction cleared at $270 per megawatt day, up more than 800% from last year. Panther Creek cleared 69 megawatts and Scrubgrass cleared 76 megawatts. We have since exited 17 megawatts of the Scrubgrass commitment and retained 59 megawatts. We are working with advisers to evaluate exiting the rest of the Scrubgrass capacity position because capacity payments and demand response are mutually exclusive. But at Panther Creek alone, we estimate that capacity payments will drive approximately $7 million of incremental revenue between June 2025 and May 2026 at a 100% margin.

轉到投影片 4。我們很高興地宣布有關我們的電力策略和資產的多項積極更新。7月份，PJM的容量市場基礎剩餘拍賣成交價為每兆瓦日270美元，比去年上漲800%以上。Panther Creek 清除了 69 兆瓦，Scrubgrass 清除了 76 兆瓦。此後，我們退出了 Scrubgrass 承諾的 17 兆瓦，並保留了 59 兆瓦。我們正在與顧問合作，評估退出 Scrubgrass 剩餘產能的情況，因為產能支付和需求回應是相互排斥的。但僅就 Panther Creek 而言，我們估計容量支付將在 2025 年 6 月至 2026 年 5 月期間以 100% 的利潤率帶來約 700 萬美元的增量收入。

We also have a positive update on waste coal tax credits. Last month, in Pennsylvania's bipartisan budget, which was passed by State House and Senate and signed into law by the governor, the waste coal tax credit was doubled from $4 per ton to $8 per ton through 2036. This legislation highlights the importance of our reclamation activities and the bipartisan support that they have in Pennsylvania. And importantly, we estimate that this increase in the tax credit will represent an additional cash flow of $2 million to $4 million per year for Stronghold starting in 2025.

我們還有關於廢煤稅收抵免的積極更新。上個月，賓州兩黨預算經州參眾兩院通過並由州長簽署成為法律，其中廢煤稅收抵免額從每噸 4 美元翻倍至 2036 年每噸 8 美元。這項立法強調了我們的填海活動的重要性以及他們在賓州獲得的兩黨支持。重要的是，我們估計，從 2025 年開始，稅收抵免的增加將為 Stronghold 每年帶來 200 萬至 400 萬美元的額外現金流。

Lastly, in April, PJM updated its guidance for co-located loads like ours. Based on this guidance to date, we believe that our Bitcoin mining operations qualify for PJM's demand response and sync reserve programs, and we are currently in the process of registering the Scrubgrass data center for these programs.

最後，PJM 在 4 月更新了像我們這樣的共置負載的指南。根據迄今為止的指導，我們相信我們的比特幣挖礦業務符合 PJM 的需求響應和同步儲備計劃，並且我們目前正在為這些計劃註冊 Scrubgrass 資料中心。

Moving on to slide 5. We have spent the last few months evaluating the expansion potential for our current assets. As a part of this process, we have engaged Appleby Strategy Group to help us explore data center opportunities and uses for our assets. Some key value drivers for data centers are access to land, power, fiber, and water, and we believe that our assets possess these qualities. We own 636 acres of Scrubgrass and 117 acres of Panther Creek, and we recently optioned an additional 1,140 acres immediately adjacent to our Panther Creek property.

繼續看投影片 5。過去幾個月我們一直在評估我們現有資產的擴張潛力。作為這個過程的一部分，我們聘請了 Appleby Strategy Group 來幫助我們探索資料中心的機會和我們資產的用途。資料中心的一些關鍵價值驅動因素是土地、電力、光纖和水的使用權，我們相信我們的資產具備這些品質。我們擁有 636 英畝的 Scrubgrass 和 117 英畝的 Panther Creek，最近我們選擇了緊鄰 Panther Creek 地產的 1,140 英畝土地。

We have entered into load studies with local utilities at both sites to understand how much power we can access, and our first preliminary load study at Panther Creek recently came back and is supportive of bringing in an additional 250 megawatts. We are evaluating timing for the potential expansion and site development. Additionally, both of our sites have various nearby fiber providers that represent diversified paths to market and both have robust water supply, further enhancing the data center prospects for our sites.

我們已經與兩個地點的當地公用事業公司進行了負載研究，以了解我們可以獲得多少電力，我們在 Panther Creek 的首次初步負載研究最近回來了，支持額外引入 250 兆瓦的電力。我們正在評估潛在擴張和場地開發的時機。此外，我們的兩個站點附近都有各種光纖供應商，代表多樣化的市場路徑，並且都有強大的供水，進一步增強了我們站點的資料中心前景。

With that, I'll turn the call over to Matt Smith to discuss Q2 results.

這樣，我將把電話轉給馬特史密斯討論第二季度的結果。

Thanks, Greg. Lastly on slide 6. Revenue for the second quarter was $19.1 million, with $18.8 million from cryptocurrency operations on 299 Bitcoin mined along with $0.3 million revenue from energy operations during the quarter. GAAP net loss was $21.3 million for the second quarter, and non-GAAP adjusted EBITDA was negative $0.3 million. A reconciliation for those figures is included in the appendix.

謝謝，格雷格。最後在幻燈片 6 上。第二季營收為 1,910 萬美元，其中 1,880 萬美元來自開採的 299 個比特幣的加密貨幣業務，以及本季能源業務的 30 萬美元收入。第二季 GAAP 淨虧損為 2,130 萬美元，非 GAAP 調整後 EBITDA 為負 30 萬美元。這些數字的調節表包含在附錄中。

I will now turn the call back over to Greg for closing remarks.

現在，我將把電話轉回給格雷格，讓他發表結束語。

Thanks, Matt. At Stronghold, we own a portfolio of hard assets that are becoming increasingly more valuable. We are at the intersection of a tight power market reflected in the increased capacity auction pricing, increased demand for power from AI, HPC data center development in a market with power generation supply constraints. We are continuing to evaluate all strategic alternatives and look forward to updating you in the near future.

謝謝，馬特。在 Stronghold，我們擁有的硬資產組合正變得越來越有價值。我們正處於電力市場緊張的十字路口，這體現在容量拍賣定價的增加、人工智慧對電力的需求增加、高效能運算資料中心在發電供應受限的市場中的發展。我們正在繼續評估所有策略替代方案，並期待在不久的將來向您通報最新情況。

Thank you for joining us today at Stronghold earnings call. You may now disconnect.

感謝您今天參加我們的 Stronghold 財報電話會議。您現在可以斷開連線。