Is it Still Safe to Invest in Stronghold Digital Mining (SDIG)?

Miller Value Partners, an investment management firm, published its “Income Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy returned -10.08% for the first quarter, while the unmanaged high-yield benchmark was down -4.51%. Most asset classes declined, and smaller companies, which make up a large share of the Income Strategy, generally fared the worst. This is apparent in the Russell 2000’s -7.5% drop against the larger-cap Russell 1000’s -5.1% decline. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Miller Value Partners Income Strategy mentioned Stronghold Digital Mining, Inc. (NASDAQ:SDIG) and explained its insights for the company. Founded in 2021, Stronghold Digital Mining, Inc. (NASDAQ:SDIG) is a United States-based crypto asset mining company with a $45.2 million market capitalization. Stronghold Digital Mining, Inc. (NASDAQ:SDIG)  delivered a -53.31% and it closed at $2.26 per share on May 13, 2022.

Here is what Miller Value Partners Income Strategy has to say about Stronghold Digital Mining, Inc. (NASDAQ:SDIG) in its Q1 2022 investor letter: 

“Stronghold Digital Mining (NASDAQ:SDIG) fell 54.5% during the quarter as the bitcoin miner reported below-consensus 4Q21 revenue of $17.0 million and a loss of $0.52 per share. Additionally, Stronghold issued a warning that headwinds related to miner receipts, deployments, and performance have led them to revise their initial year-end (YE) 2022 target hash rate capacity of 8.0 exahash per second (EH/s) to 4.3 EH/s, compared to YE 2021 capacity of 1.3 EH/s and late-March 2022 capacity of 2.3 EH/s. While management reduced processing power guidance, they noted that current guidance would likely not require additional capital.”

bitcoin mining

Our calculations show that Stronghold Digital Mining, Inc. (NASDAQ:SDIG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Stronghold Digital Mining, Inc. (NASDAQ:SDIG) was in 25 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 0 funds in the previous quarter. Stronghold Digital Mining, Inc. (NASDAQ:SDIG) delivered a -79.98% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.