Wed, Aug 14, 9:14 PM (153 days ago)
For the quarter ended June 30, 2024, GRIID Infrastructure Inc. reported a net income of $24.7 million, a significant recovery from a net loss of $10.8 million in the same period last year. Revenue totaled $4.7 million, driven by increased cryptocurrency mining revenue and a notable gain from debt extinguishment. However, the company faced operational challenges, with bitcoin mined decreasing from 83 to 36 bitcoins year-over-year due to the recent bitcoin halving and rising network difficulty. Total operating expenses increased to $10.8 million, largely due to higher professional fees associated with the CleanSpark merger and depreciation. The firm's cash position diminished to $0.3 million, raising concerns over liquidity, especially as it incurred $13.6 million in cash used for operations. GRIID's accumulated deficit stands at $89.2 million. Looking ahead, the company anticipates continued financial strain amid volatile bitcoin prices and significant capital needs for expansion. The CleanSpark merger, pending regulatory approval, may provide necessary operational synergies and liquidity but carries execution risks. Overall, GRIID's future hinges on effective management of costs and successful integration post-merger.