Nasdaq-listed mining firm Stronghold Digital Mining for sale?

cyptouser7 months agoCryptocurrencies News115
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Stronghold Digital Mining is considering selling the company in an effort to maximize shareholder value, according to its first-quarter financial report.

Information shared with Cointelegraph reveals that the company is considering a range of alternatives to boost its share price, including the sale of “all or part of the company” or other strategic transactions involving its assets.

The firm outlined that it has no deadline or timetable set for its “strategic alternatives process” and that it would make no assurance that any proposals, agreements or transactions would be executed in line with the review.

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A statement from Stronghold CEO Greg Beard said that the board and management team had commenced a comprehensive and thorough review of strategic alternatives to maximize value for its shareholders.

“We have observed what we believe to be valuation dislocation when comparing Stronghold’s market value to valuations of public Bitcoin mining peers, merchant power companies, and data center and power generation assets trading in the market.”

Beard also revealed that Stronghold owns over 130 megawatts of fully energized data center capacity with 4.1 exahash per second (“EH/s”) of installed hash rate capacity and the potential to expand to beyond 7 EH/s through high-grading its fleet with current-generation Bitcoin miners.

“Unlike most other Bitcoin miners, we own over 750 acres of land with expansive access to water and fiber; we own the transmission lines that connect our assets to the attractive PJM grid; and our two wholly owned merchant power plants have over 160 megawatts (“MW”) of net output capacity and significant carbon capture potential,” Beard explained.

The CEO added that its 130MW of existing Bitcoin mining capacity could potentially be expanded to over 400 MW for either Bitcoin mining or advanced computing used for artificial intelligence and machine learning applications.

Related: Bitcoin Runes fees surpass 1,200 BTC as miners reap rewards post-halving

Stronghold’s Q1 2024 results included revenues of $27.5 million, which was up 27% compared to the previous quarter and 59% year-on-year. The breakdown of revenues included $26.7 million from cryptocurrency operations, $700,000 from the sale of energy and a further $100,000 from “other activities”.

The company added that its 2024 Q1 fixed costs were down 11% year-on-year after instituting cost controls. The fixed costs included operations and maintenance expenses and general and administrative expenses, excluding stock-based compensation. Stronghold reported a net income of $5.8 million in the first quarter.

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