Stronghold Digital Mining, Inc. (SDIG): History, Ownership, Mission, How It Works & Makes Money

How does a Bitcoin miner with a truly unique, vertically integrated power model-one that turns Pennsylvania's coal refuse into electricity-end up being acquired in the first quarter of 2025? Stronghold Digital Mining, Inc. (SDIG) captured the market's attention with its dual mission to mine crypto and remediate environmental waste, but the hard financial truth of its Q3 2024 GAAP net loss of $22.7 million and outstanding indebtedness of roughly $53.7 million told a different story. The company's trajectory is a defintely critical case study in the energy-crypto nexus, especially since the merger with Bitfarms Ltd. closed on March 14, 2025, with shareholders receiving 2.52 shares of Bitfarms Ltd. for each Stronghold Digital Mining, Inc. share. So, what was the real value driver-the environmental innovation, or the power assets Bitfarms Ltd. was after?

Stronghold Digital Mining, Inc. (SDIG) History

You need to understand the origin story of Stronghold Digital Mining, Inc. (SDIG) to grasp why it became an acquisition target in 2025. The direct takeaway is this: Stronghold was a short-lived, publicly traded experiment in vertical integration, aiming to turn environmental clean-up into a competitive advantage for Bitcoin mining, but ultimately, market volatility and high debt forced a sale to Bitfarms Ltd. in March 2025.

Given Company's Founding Timeline

Year established

The company was incorporated on March 18, 2021, right as the cryptocurrency market was heating up.

Original location

While headquartered in Pittsburgh, Pennsylvania, the company's core assets were its two coal refuse power generation facilities in Pennsylvania: the Scrubgrass Plant and the Panther Creek Plant.

Founding team members

The company was co-founded by two seasoned executives with deep experience in natural resources and finance: Gregory Beard, who served as Co-Founder, Chairman, and Chief Executive Officer, and William 'Bill' Sproule, who served as Co-Chairman and President.

Initial capital/funding

Stronghold moved fast. The company raised a significant initial capital injection of $105 million in a Series D funding round on May 28, 2021, just two months after incorporation. In total, the company raised approximately $271 million in funding before its IPO later that year.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory was shaped by two major, opposing forces: its environmental mission and the brutal volatility of the Bitcoin market. This dual nature defined its short, intense run as a public company.

• The Waste-to-Power Thesis: Stronghold's core idea was transformative-it used coal refuse (waste coal), a massive environmental problem in Pennsylvania, to generate power for Bitcoin mining. This gave them a low-cost, vertically integrated energy source and a story about environmental remediation. They had two plants with a combined capacity of 165 megawatts.
• The Debt and Volatility Trap: Despite the innovative model, the high debt taken on for rapid expansion in 2021 became a major liability when Bitcoin prices fell in 2022. This forced them to focus on debt management and operational efficiency, not just growth. Honestly, the market didn't defintely reward the complexity.
• The Bitfarms Acquisition in 2025: The final, most transformative moment was the acquisition by Bitfarms Ltd. in March 2025. This deal, valued at 2.52 Bitfarms common shares for each Stronghold share, essentially transitioned the company's assets-its power infrastructure and its over 40,000 miners-into a larger, more diversified entity. This move validated the value of Stronghold's unique energy assets but ended its run as an independent, publicly-traded Bitcoin miner.

For a deeper dive into the financial implications of this acquisition, you should read Breaking Down Stronghold Digital Mining, Inc. (SDIG) Financial Health: Key Insights for Investors.

Stronghold Digital Mining, Inc. (SDIG) Ownership Structure

The ownership structure of Stronghold Digital Mining, Inc. underwent a fundamental shift in early 2025, moving from a publicly traded entity to a subsidiary following its acquisition. This change means that as of November 2025, the company is no longer governed by a diverse public shareholder base but is controlled by its acquiring parent company, Bitfarms.

Given Company's Current Status

As of November 2025, Stronghold Digital Mining, Inc. is no longer a standalone public company trading on the NASDAQ Global Market under the ticker SDIG. Stockholders overwhelmingly approved a merger with Bitfarms in February 2025, and the company was subsequently delisted around March 14, 2025, finalizing its transition to a private operating entity under the Bitfarms umbrella. This acquisition, which was also reported to be by Backbone Mining Solutions LLC in early 2025, fundamentally changed the company's governance and capital structure. The last reported market capitalization before its delisting was approximately $42.04 million as of November 19, 2025.

Given Company's Ownership Breakdown

The table below reflects the final publicly reported ownership structure of Stronghold Digital Mining, Inc. before its acquisition and delisting in March 2025. This breakdown is crucial because it shows who controlled the company's stock while it was a public entity, which is the basis for the merger/acquisition terms. You can see the bulk of the shares were held by individual investors, not insiders or large institutions.

The 28.49% institutional ownership, which includes firms like BlackRock Inc., shows a significant portion of the company was in the hands of professional money managers right before the acquisition. Honestly, a 71.51% retail float is high for a company of this type, which can sometimes lead to greater stock volatility.

Given Company's Leadership

The leadership team that steered Stronghold Digital Mining, Inc. through its public phase and into the acquisition was headed by its founder, Gregory A. Beard. This team was responsible for the company's core strategy of vertically integrated Bitcoin mining using environmentally beneficial coal refuse power generation.

• Gregory A. Beard: Chairman, Chief Executive Officer, and President. He was the key decision-maker driving the company's unique energy-to-mining model.
• CFO Transition: Matthew Smith, the Chief Financial Officer, resigned effective November 15, 2024, to assist with the transition as a consultant. The company did not immediately name a replacement, operating with an interim structure during the acquisition period.
• Key Executives (as of March 2025): The operational and financial stability was supported by a seasoned team including Richard J. Shaffer (Senior Vice President of Asset Management), Ryan M. Weber (Chief Accounting Officer), and Charles D. Talcott (Director of Finance and Operations).

The current leadership's focus now shifts from managing a public company to integrating operations and assets-like the Pennsylvania coal refuse power plants-into Bitfarms' larger global mining strategy. You can dive deeper into the financial performance that led to this strategic shift in Breaking Down Stronghold Digital Mining, Inc. (SDIG) Financial Health: Key Insights for Investors.

Stronghold Digital Mining, Inc. (SDIG) Mission and Values

Stronghold Digital Mining, Inc.'s identity is fundamentally dual-purpose: it's an ESG-focused Bitcoin miner that ties its profitability directly to environmental cleanup, specifically the remediation of toxic waste coal piles in Pennsylvania. This unique model defines its core purpose, aiming to create both digital assets and a cleaner environment, a defintely rare combination in the energy-intensive crypto space.

Given Company's Core Purpose

You need to understand that Stronghold's core purpose goes beyond just mining Bitcoin; it's a vertically integrated operation where the energy source is the mission itself. The company's entire business model is built on converting a long-standing environmental liability-waste coal-into a productive asset, which is a powerful narrative for investors focused on environmental, social, and governance (ESG) factors. This strategy was critical in its market positioning leading up to the March 2025 merger with Bitfarms Ltd., a deal valued at $87.3 million.

Here's the quick math on the environmental impact: the company's coal refuse power generation facilities, like the Scrubgrass and Panther Creek plants, are actively cleaning up waste coal piles, which otherwise pollute local waterways and the atmosphere in Pennsylvania.

Official mission statement

While a single, formal mission statement is often a corporate cliché, Stronghold's operational mandate is clear: to reclaim and repurpose waste coal, converting it into energy to power cryptocurrency mining operations while adhering to environmental standards and fostering community development. It's a commitment to turning a negative externality into a positive economic and environmental loop.

• Reclaim waste coal piles for environmental remediation.
• Convert coal refuse into low-cost energy for Bitcoin mining.
• Stimulate economic activity and create jobs in former coal regions.

For a deeper dive into the foundational documents, you can check out Mission Statement, Vision, & Core Values of Stronghold Digital Mining, Inc. (SDIG).

Vision statement

The company's vision is to be a leader in the Bitcoin mining industry by demonstrating a sustainable and innovative approach, essentially setting the standard for environmentally responsible digital asset creation. This vision is what drove its expansion, like the Oklahoma site which, as of March 15, 2025, housed 4,320 installed Antminer machines with a projected hashrate of 432 PH.

• Lead the industry with a sustainable and innovative mining model.
• Maximize energy efficiency through vertical integration.
• Position the company to capitalize on the expanding cryptocurrency sector.

Given Company slogan/tagline

Stronghold doesn't rely on a catchy, consumer-facing slogan, but its core differentiator is its functional tagline: Bitcoin Mining with Environmental Remediation. This phrase captures its unique value proposition and explains why analysts, before the merger, were forecasting a 2025 revenue of $106.69 million, despite an anticipated EPS loss of -$0.84 for the fiscal year. The market was valuing the dual-purpose strategy.

It's simple: they clean up the land and mine Bitcoin. That's the whole pitch.

Stronghold Digital Mining, Inc. (SDIG) How It Works

Stronghold Digital Mining, Inc. operates as a wholly owned, indirect subsidiary of Bitfarms Ltd. following its acquisition in March 2025, functioning as a vertically integrated energy and technology platform. Its core operation is converting coal refuse-a legacy environmental pollutant-into low-cost electricity to power Bitcoin mining and, increasingly, High-Performance Computing (HPC) data centers in the PJM Interconnection (PJM) wholesale electricity market.

It's a simple, powerful model: control the energy source, control the cost. That vertical integration is the whole game changer for them.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework is split into two synergistic segments: Energy Operations and Cryptocurrency Operations, now managed under Bitfarms' broader North American strategy. The process starts at the two Pennsylvania coal refuse power generation facilities, the Scrubgrass Plant and the Panther Creek Plant.

• Waste-to-Energy Conversion: Coal refuse (culm) is combusted in environmentally beneficial power plants, which remediates massive legacy waste piles in Pennsylvania, a unique environmental benefit.
• Vertical Integration: The Bitcoin mining data centers are co-located with the power plants, maximizing energy efficiency and minimizing transmission costs and losses. This setup allows for an estimated low cost to generate power, which is defintely a competitive edge.
• Dynamic Power Management: The company participates in the PJM Interconnection market. This means miners can be curtailed (turned off) to sell power to the grid when electricity prices spike, maximizing revenue from either Bitcoin production or power sales, depending on which is more profitable at any given moment.
• 2025 Capacity: The acquisition secured an incremental 165 MW of active generating capacity and a total growth pipeline of 1.1 GW in Pennsylvania, which is crucial for future expansion into HPC/AI.

Here's the quick math on the environmental side: the recent legislative increase in the waste coal tax credit in Pennsylvania is expected to add an estimated $2 million to $4 million per year to cash flow, starting in the 2025 fiscal year, directly supporting the reclamation activities.

Given Company's Strategic Advantages

The assets and operations of Stronghold Digital Mining provide Bitfarms with a distinct, defensible position in the US market, particularly in the PJM region.

• Lowest-Cost Power: The utilization of coal refuse power generation, combined with the doubling of the Pennsylvania waste coal tax credit, drives one of the lowest power costs in the industry, enhancing profitability even after the Bitcoin Halving event.
• Environmental and Regulatory Alignment: The waste-to-energy model is environmentally beneficial, as it actively cleans up coal refuse piles, positioning the company as a leader in responsible cryptocurrency mining and providing a unique selling point for its Bitcoin.
• Massive Power and Land Pipeline: The secured 1.1 GW growth pipeline in Pennsylvania, spanning three sites, provides significant multi-year expansion potential for both Bitcoin mining and the higher-margin HPC/AI business.
• HPC/AI Optionality: The strategic co-location of power and fiber makes the sites well-suited for High-Performance Computing (HPC) data center conversion, a key diversification strategy for the parent company, Bitfarms. This potential is a major value driver beyond just Bitcoin mining.

To fully understand the long-term vision for this platform, you should review the Mission Statement, Vision, & Core Values of Stronghold Digital Mining, Inc. (SDIG).

Stronghold Digital Mining, Inc. (SDIG) How It Makes Money

Stronghold Digital Mining, Inc. generated revenue primarily through a vertically integrated model: mining Bitcoin (BTC) using electricity generated from its waste-coal power plants and selling excess power back to the grid. As of November 2025, the company's financial engine has pivoted significantly, now operating as a subsidiary of Bitfarms Ltd. following a merger that closed in the first quarter of 2025, shifting its focus to a combination of self-mining, power sales, and high-performance computing (HPC) hosting.

Stronghold Digital Mining, Inc.'s Revenue Breakdown

The latest reported standalone financials for the third quarter of 2024 (Q3 2024), just before the merger, showed a clear dominance of cryptocurrency operations, but the business model is designed to flex between mining and power sales based on market economics. The merger with Bitfarms Ltd. is expected to introduce a substantial revenue stream from hosting and profit-sharing, which is not fully reflected in these historical figures.

For Q3 2024, the company recorded total revenues of approximately $11.2 million. Cryptocurrency Operations contributed $10.6 million, while Energy Sales added $0.5 million. The decreasing trend in Cryptocurrency Operations was a direct result of the Bitcoin halving event in April 2024, which cut the block reward for miners, making the standalone model less profitable and driving the strategic merger.

Business Economics

Stronghold Digital Mining, Inc.'s core economic advantage lies in its vertical integration (owning the power generation and the mining operation) and its use of low-cost, environmentally beneficial waste-coal fuel. This structure allows the company to operate as a merchant power generator, dynamically pivoting between two revenue streams: mining Bitcoin or selling power to the PJM Interconnection grid.

• Pricing Strategy: The pricing for the Cryptocurrency Operations is directly correlated to the spot price of Bitcoin, making revenue highly volatile. The Energy Operations revenue is based on wholesale power prices in the PJM market, which are subject to seasonal and peak-demand fluctuations.
• Cost Control: Owning 130 MW of power generation capacity at sites like Panther Creek and Scrubgrass gives the company a competitive edge by controlling its largest input cost-electricity-which is critical after the halving event.
• New Profit Center: The merger with Bitfarms Ltd. introduced hosting agreements for 20,000 Bitmain T21 miners, which are expected to generate revenue through a 50% profit-sharing model. This shifts the economic risk by securing a revenue stream that leverages Stronghold's power infrastructure without the full capital expenditure of owning all the miners.
• Capacity Expansion: The combined entity, under Bitfarms Ltd., is targeting an expanded energy portfolio of 950 MW by the end of 2025, with a strategic focus on expanding the Pennsylvania sites for potential High-Performance Computing (HPC) and Artificial Intelligence (AI) applications, creating a third, high-margin revenue path.

Here's the quick math: The company's ability to sell capacity into capacity auctions, like clearing the PJM Base Residual Auction at $269.92/MW/day (an 833% increase from the prior year), provides a significant, stable revenue floor that insulates it from some of the volatility of the crypto market. That's a defintely smart hedge.

Stronghold Digital Mining, Inc.'s Financial Performance

The financial performance in the lead-up to the merger highlighted the pressure on the standalone Bitcoin mining model, but also the value of its infrastructure assets. The trailing twelve months (TTM) revenue as of September 30, 2024, was approximately $76.39 million.

• Revenue and Losses: The TTM Net Income was a loss of approximately $29.41 million, reflecting the high fixed costs of operating power plants against fluctuating Bitcoin prices and the halving impact.
• Liquidity and Debt: As of November 8, 2024, the company's liquidity stood at approximately $6.7 million in cash and Bitcoin, against a significant outstanding debt of around $53.7 million.
• Merger Valuation: The acquisition by Bitfarms Ltd., which closed in Q1 2025, was valued at approximately $175 million, including a stock transaction of $125 million and the assumption of $50 million in debt. This valuation was a premium over the pre-merger stock price, suggesting the market recognized the underlying value of the company's vertically integrated power assets and their potential for diversification into HPC/AI.
• Hosting Impact: The hosting agreements with Bitfarms Ltd. included a total of $15.6 million in power cost deposits (two deposits of $7.8 million each) which provided a crucial, immediate boost to the company's working capital and liquidity going into 2025.

What this estimate hides is the pro-forma financial picture of the combined entity, which is expected to see improved operational efficiency and a lower cost of production per Bitcoin mined due to the scale and fleet upgrade provided by Bitfarms Ltd. You can dive deeper into the ownership structure post-merger by Exploring Stronghold Digital Mining, Inc. (SDIG) Investor Profile: Who's Buying and Why?

Finance: Track the first two quarters of 2025 Bitfarms Ltd. earnings reports to quantify the actual profit-share revenue from the hosting agreements and the progress on the HPC/AI expansion.

Stronghold Digital Mining, Inc. (SDIG) Market Position & Future Outlook

As of November 2025, the market position of Stronghold Digital Mining, Inc. is defined by its strategic integration into Bitfarms Ltd. (BITF), following the acquisition completed in Q1 2025. This move effectively transformed Stronghold's unique, vertically integrated waste-to-energy assets into a core component of a larger North American energy and digital infrastructure company, shifting the focus from pure Bitcoin mining to High-Performance Computing/Artificial Intelligence (HPC/AI) infrastructure development.

The company's future outlook is now tied to the combined entity's ability to monetize its massive power capacity-which includes Stronghold's Pennsylvania assets-by converting mining sites into high-margin data centers, a crucial pivot in the post-halving, power-constrained market. This is defintely a high-stakes, high-reward bet.

Competitive Landscape

The acquisition vaulted the combined Bitfarms Ltd. entity into the top tier of vertically integrated North American operators, though its hashrate market share remains smaller than the largest pure-play miners. The competitive advantage for the former Stronghold assets lies not in sheer Bitcoin mining power, but in their owned, low-cost power generation and strategic location within the PJM market (Pennsylvania-New Jersey-Maryland Interconnection), which is a key region for energy trading and HPC/AI growth.

Here's the quick math on where the combined company stands relative to the largest players, based on late 2025 public miner hashrate data:

Opportunities & Challenges

The strategic value of the former Stronghold assets is their flexibility and environmental profile, which is crucial as the industry pivots away from low-margin Bitcoin mining. The key opportunities and risks for the combined entity as of November 2025 are clear:

Industry Position

The former Stronghold Digital Mining, Inc. assets provide Bitfarms Ltd. with a unique position at the intersection of energy, environmental remediation, and high-performance computing. This is a significant differentiator in a crowded mining sector.

• Energy Portfolio Scale: The acquisition secured a 1.1 GW growth pipeline in Pennsylvania, contributing to Bitfarms Ltd.'s total North American energy portfolio of 2.1 GW (energized, under development, and pipeline).
• Strategic Pivot: Stronghold's coal refuse power generation sites, like Panther Creek, are being prioritized for conversion to HPC/AI data centers, moving the company toward higher-margin, predictable revenue streams.
• Financial Context: The strategic shift is critical given Stronghold's standalone Q3 2024 revenue of $11.2 million and a GAAP net loss of $22.7 million, highlighting the need for a more sustainable business model beyond Bitcoin's post-halving economics.
• Core Advantage: The company's core competitive advantage remains its vertical integration, controlling power generation from environmentally beneficial waste coal remediation, a unique selling point for ESG-focused institutional clients. You can read more about what drives this strategy in the Mission Statement, Vision, & Core Values of Stronghold Digital Mining, Inc. (SDIG).

The total energy capacity of 165 MW from the two existing power plants, plus the 142 MW of immediately available import capacity, gives the combined entity a strong foothold in the PJM market. Finance: draft a clear CapEx schedule for the Panther Creek HPC conversion by next Tuesday.