Stronghold Digital Mining has restated its Q3 2024 financial statements due to an error in revenue recognition for Bitcoin hosting contracts. The restatement resulted in a $3.1 million decrease in cryptocurrency hosting revenues, offset by a $3.3 million increase in realized gains and $0.1 million decrease in unrealized gains on digital currencies, with no impact on net loss.The company identified a material weakness in internal controls related to evaluating U.S. GAAP guidance for measuring non-cash Bitcoin consideration. For Q3 2024, total operating revenues decreased to $8.0 million from $17.7 million year-over-year, while net loss increased slightly to $22.7 million from $22.3 million. The company owned or hosted approximately 32,000 Bitcoin miners with 3.2 EH/s hash rate capacity as of November 2024.The company has entered into a merger agreement with Bitfarms Ltd., expected to close in Q1 2025 subject to shareholder and regulatory approvals. Under the agreement, Stronghold stockholders will receive 2.52 Bitfarms common shares for each Class A share. The company maintained $5.1 million in cash and Bitcoin as of September 30, 2024, with $53.7 million in outstanding debt.

Stronghold Digital Mining has restated its Q3 2024 financial statements due to an error in revenue recognition for Bitcoin hosting contracts. The restatement resulted in a $3.1 million decrease in cryptocurrency hosting revenues, offset by a $3.3 million increase in realized gains and $0.1 million decrease in unrealized gains on digital currencies, with no impact on net loss.The company identified a material weakness in internal controls related to evaluating U.S. GAAP guidance for measuring non-cash Bitcoin consideration. For Q3 2024, total operating revenues decreased to $8.0 million from $17.7 million year-over-year, while net loss increased slightly to $22.7 million from $22.3 million. The company owned or hosted approximately 32,000 Bitcoin miners with 3.2 EH/s hash rate capacity as of November 2024.The company has entered into a merger agreement with Bitfarms Ltd., expected to close in Q1 2025 subject to shareholder and regulatory approvals. Under the agreement, Stronghold stockholders will receive 2.52 Bitfarms common shares for each Class A share. The company maintained $5.1 million in cash and Bitcoin as of September 30, 2024, with $53.7 million in outstanding debt.