Stronghold Digital Mining, Inc. (SDIG): Business Model Canvas [Dec-2025 Updated]

You're looking at the business model of what was Stronghold Digital Mining, Inc. (SDIG), but since the March 2025 acquisition by Bitfarms, we're really dissecting the powerful, vertically integrated assets now under the BITF umbrella. Honestly, this model is fascinating because it's not just about stacking Bitcoin; it's a dual-engine machine generating revenue from both crypto mining and selling power capacity back to the PJM grid, all while cleaning up waste coal refuse piles in Pennsylvania. With 165 MW of active capacity and a Trailing Twelve Months revenue near $79.53 Million USD as of November 2025, this setup offers serious low-cost power flexibility. This structure is a masterclass in energy arbitrage. Dive below to see the full nine blocks of this unique, post-acquisition operational canvas.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Stronghold Digital Mining, Inc. (SDIG) now that it's part of Bitfarms Ltd. These aren't just handshake deals; they are the infrastructure backbone, especially concerning power and hardware. Honestly, the most immediate change is the parent company, but the operational partnerships are what keep the lights on and the miners running.

Bitfarms Ltd. (BITF) as the new parent company and operator

The definitive merger agreement closed on March 17, 2025, making Stronghold Digital Mining, Inc. a wholly-owned subsidiary of Bitfarms Ltd.. This transaction was valued at approximately $125 million in equity value, plus the assumption of roughly $50 million in debt. At closing, Bitfarms paid about $44.5 million to retire outstanding Stronghold loans. Stronghold shareholders received 2.52 shares of Bitfarms for each Stronghold share they owned. The goal for the combined entity was to rebalance the year-end 2025 energy portfolio to be 80% North American, up from about 6% previously.

The acquisition immediately increased the energy portfolio to 623 Megawatts Under Management (MWuM), which includes 165 MW of active generating capacity and 142 MW of immediately available import capacity, primarily from the PJM grid. This move secured a 1.1 GW growth pipeline across three sites in Pennsylvania.

PJM Interconnection for power grid capacity and energy sales

Stronghold's Pennsylvania assets, like the 85-MW Scrubgrass Generating Plant, are strategically located within the PJM Interconnection (the largest wholesale electricity market in the U.S.). This location provides access to the grid for both power generation and import capacity. However, this relationship required significant cleanup; in January 2025, Stronghold settled charges with the Federal Energy Regulatory Commission (FERC) for violating PJM market rules. The settlement required Stronghold to return $678,635 in capacity revenues to PJM and pay a civil penalty of $741,365 to the U.S. Treasury, totaling about $1.4 million.

Despite the past issues, the PJM pipeline remains critical for future scale. The combined Bitfarms/Stronghold PJM pipeline across three sites totals over 1 GW. Furthermore, Stronghold signed a 'distributed energy resource and peak saver' agreement with Voltus in April 2025, which is designed to help manage PJM demand and capacity obligations.

Canaan for miner procurement and hosting agreements

The partnership with Canaan, the ASIC manufacturer, is key for fleet expansion and operational efficiency. Bitfarms added nearly 1 Exahash Under Management (EHuM) through existing hosting agreements inherited from Stronghold with Canaan, which operate on a 50% profit split. This brought the combined total EHuM to 18 EHuM.

The agreement was amended to upgrade the mining fleet at the Panther Creek facility. Specifically, Canaan agreed to deliver 4,000 Avalon A14 series mining machines to replace older models. Previously, a hosting deal with a Canaan subsidiary involved activating 2,000 Avalon A1346 and 2,000 A1246 miners for a total of 400 PH/s.

Voltus for demand response and peak saver programs

Stronghold entered into a 'distributed energy resource and peak saver' agreement with Voltus in April 2025. Voltus operates as a virtual power plant (VPP) platform, helping large energy users like data centers manage peak demand charges in markets like PJM. For PJM customers, Voltus's platform is cited to save between $98,000 to $279,000 per MW-year in generation and transmission capacity charges. This is especially relevant given that PJM published a nearly tenfold increase in capacity prices year-over-year, making demand response mitigation urgent for bills starting in June 2025.

WWT and ASG for potential High-Performance Computing (HPC)/AI site development

The strategic move into HPC/AI relies heavily on partners like WWT and ASG. These strategic partners are prioritizing Stronghold's sites for potential HPC/AI conversion. The combined PJM pipeline offers the potential to develop two power campuses totaling nearly one gigawatt for HPC/AI applications. This diversification is a major focus for Bitfarms moving forward, aiming to monetize the energy assets with long-term, steady cash flows from HPC/AI customers.

Here's a quick look at the scale of these key relationships as of late 2025:

The Canaan hosting agreements, which feature a 50% profit split, are now part of Bitfarms' self-mining operations, which reached 15.2 EH/s in January 2025 before guidance adjustment. The PJM import capacity secured is 142 MW, which is immediately available.

You should definitely track the integration of the HPC/AI strategy, as the potential upside from the WWT/ASG partnership is substantial:

• Potential to develop two power campuses for HPC/AI.
• The combined PJM pipeline spans three sites in Pennsylvania.
• The goal is to rebalance the energy portfolio to 80% North American by year-end 2025.
• The Voltus agreement is anticipated to help reduce overall electricity costs via PJM demand response programs.

Finance: draft 13-week cash view by Friday.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Key Activities

You're looking at the core operations of the assets Stronghold Digital Mining, Inc. brought into the Bitfarms portfolio following the acquisition completion on March 17, 2025. The key activities center on vertical integration across power generation, environmental services, and digital asset mining.

Operating two waste coal-fired power generation facilities

Stronghold Digital Mining, Inc. owned and operated two waste-to-energy facilities in Pennsylvania, which now contribute to the combined entity's energy portfolio.

The combined energy portfolio under management (MWuM) increased to 623 Megawatts following the integration of these incremental 165 MW of active generating capacity.

Bitcoin self-mining using internally generated power

The strategy is to use internally generated power for Bitcoin self-mining or sell power into wholesale markets, choosing whichever path is more profitable at the time. For context on mining scale prior to the full integration, Stronghold reported generating 188 Bitcoin in Q3 2024. The acquisition added nearly 1 Exahash Under Management (EHuM) to the combined company's total hash rate.

Environmental reclamation of waste coal refuse piles in Pennsylvania

A core activity involves the environmental stewardship of former mining sites, turning waste into energy. The company converts over 1.25 million tons of coal refuse into energy annually. Specific reclamation milestones include:

• Restoration of over 1,050 acres of land for community use.
• Reclamation of the Tassa Mining Waste Pile, removing nearly 150,000 tons of waste across 50 acres.

Furthermore, a settlement agreement requires the removal of an unpermitted coal ash pile at the Scrubgrass facility by September 2026, which is 14 months sooner than previously required.

Energy trading and capacity sales to the PJM grid

The power plants participate in the PJM Interconnection market, though this has involved regulatory scrutiny. For instance, the Scrubgrass plant cleared 62.5 MW of capacity in a recent configuration, which was anticipated to yield about $6 million in revenue. Separately, the Panther Creek plant cleared 69.2 MW, expected to add about $7 million in revenue. This activity led to a settlement where Stronghold and a subsidiary agreed to pay about $1.4 million for past PJM tariff violations, which included disgorging $678,635 in capacity revenues and paying a $741,365 penalty.

Developing sites for future High-Performance Computing (HPC) infrastructure

The acquired sites are positioned for future expansion into High-Performance Computing (HPC) and AI data centers. The combined PJM pipeline across three sites in Pennsylvania totals over 1 GW. This includes the potential to develop two power campuses totaling nearly one gigawatt specifically for HPC/AI applications. This land development potential is supported by Stronghold owning over 750 acres of land, with an additional eleven hundred acres under option.

Finance: draft 13-week cash view by Friday.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Key Resources

You're looking at the core assets that underpin Stronghold Digital Mining, Inc.'s operations, now integrated into Bitfarms following the acquisition finalized in March 2025. These resources are what give the combined entity a unique position, especially in the PJM market.

The foundation is the owned power generation assets. Stronghold brought two merchant power plants in Pennsylvania-Scrubgrass and Panther Creek-which burn waste coal to generate power. These facilities provided an incremental 165 MW of active generating capacity to the combined energy portfolio as of the acquisition date. The Scrubgrass plant alone was noted as an 85-MW coal-fired facility, and Panther Creek was an 80-MW facility. This self-generation capability is a critical, hard asset.

Next, you have the massive growth potential locked into the real estate and power rights. Stronghold secured a 1.1 GW growth pipeline across three sites in Pennsylvania. This pipeline includes current power generation capacity, current grid import capacity, and future import capacity, positioning the combined company strongly within the PJM market. The potential exists to develop two power campuses totaling nearly one gigawatt specifically for High-Performance Computing (HPC)/AI applications, alongside Bitcoin mining.

The digital infrastructure includes the mining equipment itself and the deployment technology. The acquisition added nearly 1 Exahash Under Management (EHuM) of mining equipment to the combined entity's total, stemming from existing hosting agreements. Prior to the merger, Stronghold's operational hashrate as of June 30, 2024, stood at 4.0 EH/s, with plans for fleet upgrades to potentially reach approximately 10 EH/s in 2025. Data center infrastructure also includes proprietary StrongBox mobile units, which offer flexible deployment for mining and HPC/AI workloads.

Here is a quick look at the core power and hash rate metrics derived from the Stronghold assets:

The environmental remediation assets are also a key resource, specifically the beneficial use of coal combustion waste, or Karbolith. This process involves taking the ash byproduct from burning waste coal and using it for environmental remediation. Test results on the Karbolith product showed carbonation of up to 14% of the starting weight of dry ash, with an average of approximately 10% carbonation. The cost to construct a subsequent Karbolith unit was estimated to be approximately $60,000, a reduction from the first unit.

You should note the operational context around these environmental assets:

• The two power plants are recognized by Pennsylvania as a Tier 2 Alternative Energy Source.
• The process removes waste coal, with the Scrubgrass plant having removed approximately 241,000 tons of waste coal in Q2 2022.
• The company agreed to speed up the cleanup of an unpermitted coal ash dumping site by September 1, 2026.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for Stronghold Digital Mining, Inc. (SDIG) as the company moves through late 2025. The proposition centers on turning an environmental liability into an economic asset, which is a powerful differentiator in the energy and digital asset space.

Vertically integrated, low-cost power generation for mining

The integration of power generation directly supports the low-cost structure you're interested in. The company operates waste coal power facilities, specifically naming the Scrubgrass and Panther Creek sites. Here's the quick math on their generation capacity:

Management has highlighted plans for scale, noting negotiations for additional facilities that could bring total power capacity over 200 megawatts by the end of 2025.

Environmentally beneficial operations via waste coal cleanup

This is where the environmental reclamation story provides a tangible metric. Stronghold Digital Mining, Inc. uses waste coal, which is a material left over from abandoned mining operations, as fuel. The value proposition here is the remediation that results from the energy production process.

• For every Bitcoin mined by the plant, an estimated 200 tons of waste coal is eliminated.
• To date, the company has reclaimed over 1,000 acres of land.
• As part of an agreement finalized in March 2025, the company committed to finishing the cleanup of its coal ash pile by September 1, 2026.
• The company paid a civil penalty of $28,800, split between the Commonwealth of Pennsylvania Solid Waste Abatement Fund and the Clean Water Fund.

Dual revenue from Bitcoin mining and energy sales to the grid

You see revenue coming from two distinct, yet related, sources. The trailing twelve months (TTM) revenue as of November 2025 was reported at $79.53 Million USD. Looking at a specific recent quarter (Q3 2024), the revenue mix clearly shows this dual approach:

That $0.5 million in energy revenue during Q3 2024 was equivalent to approximately 8 Bitcoin at the average price during that period, showing the direct impact of energy market pricing on that segment.

Strategic sites with large power capacity for future HPC/AI applications

The physical sites are positioned not just for mining but for future high-performance computing (HPC) and Artificial Intelligence (AI) workloads. Management specifically highlighted the potential to integrate these workloads alongside Bitcoin mining. The scale they are targeting is significant:

• Management highlighted a potential scale of >950 MW potential by YE25.
• The company entered into hosting agreements with Bitfarms to host a total of 20,000 Bitmain T21 Bitcoin miners across its sites.

Power flexibility to curtail mining for demand response revenue

The ability to switch power usage between self-mining and selling to the grid, often through demand response programs, is a key flexibility point. This allows Stronghold Digital Mining, Inc. to chase the best unit economics at any given time. For instance, in August 2024, operations demonstrated this flexibility, generating approximately $4 million in revenue for that month, which included grid sales/demand-response optionality, alongside the $0.5 million in energy sales reported for Q3 2024.

Finance: draft 13-week cash view by Friday.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Customer Relationships

You're looking at the customer relationships for Stronghold Digital Mining, Inc. (SDIG) as of late 2025, which means we must view this through the lens of the Bitfarms acquisition, completed in March 2025. The relationships are now integrated into the larger Bitfarms structure, focusing on energy grid interaction, digital asset production, and future high-performance computing (HPC) clients.

Transactional relationship with the Bitcoin network (mining)

The primary transactional relationship is with the Bitcoin network itself, where Stronghold's former assets now contribute to Bitfarms' self-mining operations. This relationship is measured by hashrate and resulting Bitcoin earned. As of January 2025, before the full integration, Bitfarms reported an operational hashrate of 15.2 EH/s, with deployments continuing through Q2 2025 across the combined footprint. The goal for the combined entity, including the acquired Stronghold sites, is to reach 21 EH/s installed across 15 sites when all miners are successfully deployed. In January 2025, the company earned an average of 6.5 BTC daily, which equated to approximately $682,500 per day based on a Bitcoin price of $105,000 on January 31, 2025. For context on the acquired assets, Stronghold's Q3 2024 production was 188 Bitcoin plus $0.5 million in energy revenue, totaling the equivalent of 196 Bitcoin for the quarter. The integration also brought in nearly 1 Exahash Under Management (EHuM) from existing hosting agreements with a 50% profit split, which transitioned into Bitfarms' self-mining operations. The total Bitcoin held in treasury by the combined entity as of January 31, 2025, was 1,152 BTC, valued at $121.0 million.

Contractual relationships with PJM for energy capacity sales

The relationships with PJM Interconnection, the regional transmission organization, are critical, as they involve selling guaranteed power capacity back to the grid, often providing a hedge against volatile mining economics. Stronghold's two Pennsylvania facilities, Scrubgrass and Panther Creek, are key here. The combined PJM pipeline across these three sites in Pennsylvania now totals over 1 GW. The acquisition increased the total energy portfolio under management to 623 Megawatts Under Management (MWuM), which includes 165 MW of active generating capacity and 142 MW of immediately available import capacity. The PJM capacity market is a major customer for this capacity. For instance, the Panther Creek plant cleared 69.2 MW of capacity in the last base capacity auction, while the Scrubgrass plant cleared 62.5 MW of net capacity after bilateral adjustments. The PJM capacity price for the 2025/2026 delivery year cleared at $269.92/MW-day in most zones. However, these relationships have required settlements; Stronghold and a subsidiary agreed to pay about $1.4 million to settle PJM market rule violations, which included returning $678,635 in capacity revenues and paying a $741,365 penalty to the U.S. Treasury. The company anticipates that PJM demand response programs will help reduce overall electricity costs.

Here's a breakdown of the capacity cleared by the former Stronghold plants in a recent PJM base capacity auction:

Strategic, long-term development partnerships for HPC/AI

A key strategic shift post-acquisition is the focus on developing HPC/AI workloads alongside Bitcoin mining, creating a new customer segment for high-density, long-term power consumption. Bitfarms has identified opportunities to develop two power campuses totaling nearly one gigawatt specifically for HPC/AI applications, leveraging the land, power, and fiber infrastructure inherited from Stronghold in Pennsylvania. Strategic partners, namely WWT and ASG, are actively prioritizing these Stronghold sites for potential HPC/AI conversion. The long-term contracts associated with these HPC/AI customers are expected to provide steady cash flows and earnings streams, better monetizing the North American energy assets. The pro forma company aims for its year-end 2025 energy portfolio to be 80% North American, up from a lower percentage before the merger, reflecting this strategic pivot.

• Potential HPC/AI development capacity: Nearly 1 gigawatt across two campuses.
• Key strategic partners engaged: WWT and ASG.
• Benefit: Securing long-term, steady cash flows from data center customers.

Regulatory compliance and engagement with environmental agencies

Stronghold's foundation is rooted in environmental reclamation, which dictates a specific relationship with regulatory bodies. The two primary waste coal reclamation facilities are Scrubgrass (85 MW) and Panther Creek (80 MW). The core business involves turning environmentally hazardous waste coal into usable energy, which is then either used for mining or sold to the grid. This environmental focus is a core part of the combined company's narrative regarding its U.S. strategy and environmental benefits. The settlement with FERC for PJM violations involved a $741,365 penalty to the U.S. Treasury, showing direct financial interaction with regulatory enforcement. Furthermore, the company is involved in PJM's stakeholder process to develop new rules for large data centers, as PJM is proposing to bolster its load forecasting for data centers, a process that impacts future capacity market participation for the former Stronghold assets. Finance: draft 13-week cash view by Friday.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Channels

You're looking at how the former Stronghold Digital Mining, Inc. (SDIG) now connects its value proposition to customers following its March 14, 2025, merger with Bitfarms Ltd. (BITF).

Direct connection to the PJM wholesale electricity market

The combined entity leverages Stronghold's assets to be a major player in the PJM market. This channel involves selling excess power or participating in demand response programs. The post-merger structure secured 142 MW of immediately available import capacity into PJM.

• Secured 1.1 GW growth pipeline in Pennsylvania, which includes current power generation capacity, current grid import capacity, and future import capacity.
• The combined PJM pipeline spans three sites in Pennsylvania.
• PJM demand response programs are anticipated to reduce overall electricity costs.
• Stronghold's pre-merger assets included two fully owned merchant power plants with an aggregate net output capacity of over 160 MW.

Bitcoin network for block rewards and transaction fees

The primary output of the mining operations is direct interaction with the Bitcoin network to secure block rewards and transaction fees. Post-merger, the operational hashrate is significantly scaled.

Here's a quick look at the scale of the mining channel:

Direct sales/hosting agreements for High-Performance Computing (HPC) clients

This channel focuses on diversifying revenue beyond pure Bitcoin mining by dedicating power capacity to HPC/AI workloads. The strategy involves developing power campuses specifically for these clients.

• Potential to develop two power campuses totaling nearly one gigawatt for HPC/AI.
• Pre-merger capacity of 130 MW had potential to scale up to over 400 MW for advanced computing tasks.
• Strategic partners WWT and ASG are prioritizing Stronghold sites for potential HPC/AI conversion.

Public market via the parent company, Bitfarms (NASDAQ/TSX: BITF)

Stronghold Digital Mining, Inc. ceased to exist as an independent publicly traded entity. Its access to public capital markets is now entirely through its parent company, Bitfarms Ltd.

• Stronghold became a wholly owned, indirect subsidiary of Bitfarms on March 14, 2025.
• SDIG's common stock ceased trading on Nasdaq prior to the opening of trading on March 17, 2025.
• Stronghold shareholders received 2.52 Bitfarms common shares for each SDIG share they owned.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Stronghold Digital Mining, Inc. (SDIG) as of late 2025. Since the acquisition by Bitfarms Ltd. closed in March 2025, these segments now feed into the larger Bitfarms operational structure, which positions itself as the industry leader in the PJM market. The core business remains vertically integrated power generation and digital asset mining, plus new data center opportunities.

The most recent reported full-quarter financial snapshot before the full integration was Q3 2024, which gives us a baseline for revenue contribution, though the year-end 2025 portfolio is projected to be much larger.

Bitcoin network (primary revenue source)

This segment is the core driver, focused on mining Bitcoin using self-generated power. Post-acquisition, this is integrated with Bitfarms' broader self-mining and hosting operations. The Q3 2024 revenue from cryptocurrency operations was $10.6 million, out of total revenue of $11.2 million for that quarter. Production for Q3 2024 was 188 Bitcoin, equating to 196 Bitcoin equivalents when including energy revenue. As of November 2025, the trailing twelve months (TTM) revenue was reported at $79.53 Million USD.

The hosting agreements with Bitfarms involve hosting 20,000 Bitmain T21 Bitcoin miners across the Panther Creek and Scrubgrass sites, with Stronghold earning a 50% profit share from these hosted miners.

PJM Interconnection and regional power grid operators

This segment involves selling excess power or providing grid services through the two Pennsylvania power generation facilities, Panther Creek and Scrubgrass. The Q3 2024 energy sales revenue was $0.5 million, which was equivalent to approximately 8 Bitcoin at the average price during that period. The company has secured capacity revenue streams from PJM auctions:

The combined entity under Bitfarms secures a PJM pipeline spanning three sites in Pennsylvania, totaling over 1 GW, which is anticipated to include PJM demand response programs to lower electricity costs. However, historical compliance issues resulted in a Federal Energy Regulatory Commission (FERC) settlement where Stronghold agreed to pay about $1.4 million total, which included returning $678,635 in capacity revenues to PJM and paying a $741,365 penalty to the U.S. Treasury for violations between 2018 and 2022.

Institutional clients requiring large-scale, low-cost power for HPC/AI

This is a key growth area for the combined entity, leveraging the power infrastructure near metropolitan areas and fiber lines. The strategy includes the potential to develop two power campuses totaling nearly one gigawatt for High-Performance Computing (HPC) and Artificial Intelligence (AI) workloads. Strategic partners WWT and ASG are prioritizing these Stronghold sites for potential HPC/AI conversion. The hosting agreements with Bitfarms also involved $7.8 million deposits per site (two sites) to cover approximately 3 months of power costs, which aids near-term working capital.

Environmental regulators and local Pennsylvania communities

Stronghold Digital Mining, Inc. differentiates itself by focusing on environmentally beneficial operations. The company owns and operates coal refuse power generation facilities in Pennsylvania.

• The power generation process involves converting waste coal left over from mining operations into electricity.
• The business explicitly provides environmental remediation and reclamation services as part of its Energy Operations segment.
• The combined energy portfolio is projected to be 80% North American by year-end 2025, rebalancing from previous international exposure.

Finance: draft 13-week cash view by Friday.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Cost Structure

Fuel costs, which primarily cover trucking waste coal refuse to the Panther Creek and Scrubgrass power plants, represented a significant operational outlay. For instance, in the first quarter of 2023, the Fuel Operating Expense was reported at $7,414,014.

Significant debt servicing was a major cost component, culminating in the assumption of $50 million of Stronghold Digital Mining, Inc.'s debt by Bitfarms as part of the merger agreement expected to close in Q1 2025. Prior to the transaction, Stronghold Digital Mining, Inc. carried approximately $50 million in high-interest debt against only $5 million in cash.

Electricity generation and data center operational expenses were substantial, reflecting the energy-intensive nature of Bitcoin mining co-located with power generation facilities. In the first quarter of 2023, total Operating Expenses, which included fuel, operations and maintenance, and general and administrative costs, amounted to $15.9 million for that quarter. The company operated two major plants in Pennsylvania, Panther Creek (80 MW) and Scrubgrass (85 MW) as of early 2025, which had capacity obligations in PJM markets.

Regulatory compliance and environmental remediation costs materialized as direct cash outlays. Stronghold Digital Mining, Inc. and a subsidiary agreed to a settlement in January 2025 totaling about $1.4 million for violating PJM Interconnection market rules. This settlement involved returning $678,635 in capacity revenues to PJM and paying a $741,365 penalty to the U.S. Treasury.

Capital expenditures for miner fleet upgrades and site expansion were historically funded through equity raises and lease financing, though post-acquisition these costs would transition to the acquirer. For context, a $74 million lease financing round in late 2025 was intended to fund purchases of Bitcoin miners and scale expansion.

The company's cost structure was heavily influenced by its unique power generation model, which involved both the cost of fuel (waste coal trucking) and the cost of managing grid capacity obligations.

• Trucking costs for waste coal remain a variable input cost.
• Operational costs include maintenance for the two Pennsylvania power plants.
• Debt servicing was a fixed, high-priority cash outflow prior to the March 2025 acquisition.
• Compliance costs resulted in a $1.4 million settlement in early 2025.

Stronghold Digital Mining, Inc. (SDIG) - Canvas Business Model: Revenue Streams

The revenue streams for Stronghold Digital Mining, Inc. (SDIG), particularly as the entity existed leading up to its late 2025 status following the Bitfarms acquisition, centered on vertically integrated power generation and digital asset mining, supplemented by grid services.

Trailing Twelve Months (TTM) revenue for the former SDIG entity was approximately $79.53 Million USD as of November 2025. This figure represents the top-line income generated across all operational segments before any expenses are subtracted.

The primary driver remains Bitcoin mining revenue, which is a function of mined volume and the prevailing market price of Bitcoin, plus any associated transaction fees.

• Bitcoin mining revenue from block rewards and transaction fees: For the third quarter of 2024, cryptocurrency operations generated $10.6 million in revenue.
• During that same quarter, Stronghold generated 188 Bitcoin, equating to 196 Bitcoin equivalents when including energy revenues.

Energy sales and capacity payments from the PJM grid provide a crucial, often counter-cyclical, revenue component by monetizing the power generation assets owned by Stronghold Digital Mining, Inc.

• Energy sales revenue for Q3 2024 was approximately $0.5 million.
• The Scrubgrass plant previously operated as a capacity resource in PJM with a 'must offer requirement' of approximately 85 MW between 2018 and 2022.
• In a prior capacity auction, the Panther Creek plant cleared 69.2 MW, which was expected to increase revenue by about $7 million.
• The Scrubgrass plant cleared 62.5 MW of capacity, which was set to yield about $6 million in revenue.

Hosting revenue from third-party miners served as a significant near-term liquidity support mechanism, especially ahead of the Bitfarms merger close in early 2025.

• Stronghold signed Hosting Agreements with Bitfarms to host a total of 20,000 Bitmain T21 Bitcoin miners.
• Revenue from hosting is structured as a 50 percent profit-share arrangement.
• Bitfarms provided a deposit of $7.8 million, which represented the estimated cost of power for three months of operations under the hosting agreement.

Potential future revenue from High-Performance Computing (HPC) leases is an area of strategic focus, leveraging the existing power infrastructure for non-mining data center load.

Here's a quick look at some key financial metrics related to the revenue generation structure, based on the latest available data points:

The business model is designed to pivot between selling power into the PJM wholesale market or using that power to mine Bitcoin, depending on which offers better profitability at any given time. This flexibility is a core component of the revenue strategy.

Finance: draft 13-week cash view by Friday.