Stronghold Digital Mining stock extends slump after Q2 earnings miss

Stronghold Digital Mining (NASDAQ:SDIG) shares slid 6% in Tuesday after-hours trading, adding to an intraday decline of nearly 12%, after the bitcoin (BTC-USD) miner saw its Q2 top and bottom lines miss Wall Street expectations. In an effort to improve its liquidity position, Stronghold Digital has (SDIG) agreed to end all $67.4M outstanding under equipment financing agreements with NYDIG and another participating lender. It will return 26.2K bitcoin (BTC-USD) miners to free up the related data center slots. The company also received a binding commitment letter from WhiteHawk Finance to restructure and expand its current equipment financing agreements into a 36-month secured note. That more-than-doubled the weighted-average tenor, reduced near-term principal payments and added up to $20M of additional borrowing capacity to buy more miners. Going forward, "we aim to capitalize on our dramatically improved liquidity position to prudently invest in our Bitcoin mining fleet when dislocations between price and value might arise," said CEO and Co-Chairman Greg Beard. "We continue to push forward with investments in our power assets where we expect meaningful operational improvements following planned maintenance at both plants during the third quarter.”EPS of -$0.82 at the end of June missed the average analyst estimate of -$0.35 but improved from -$123.86 at June 30, 2021. Q2 revenue of $29.2M also missed the consensus of $30.1M bu...