News
Bitcoin Miner Stronghold Explores Selling After Halving
Following the halving, some Bitcoin miners are reorganizing operations to adapt to the new paradigm, and one entity is evaluating all options.
According to Press releaseStronghold Digital Mining is exploring options to maximize shareholder value, including the complete sale of the company and its assets.
Bitcoin (Bitcoin) uses leftover coal as an energy source for its Pennsylvania-based cryptocurrency mining facility. According to the May 2 announcement, Stronghold highlighted a disparity between its stock prices and the valuations imposed by market competitors.
Google Finance has shown a 62% drop in Stronghold’s SDIG shares this year, although other Bitcoin miners such as Riot and Marathon Digital have also seen share price declines.
After Stronghold revealed its plan, SDIG rose 7% in pre-market hours as the Bitcoin miner evaluated available paths. The company has reportedly engaged financial advisors Cohen and Company Capital Markets for this purpose.
“Stronghold’s Board of Directors and management team are committed to maximizing value for our shareholders and, to that end, have initiated a full and thorough review of strategic alternatives.”
Greg Beard, CEO and president of Stronghold
Expert: Bitcoin mining market will see a change after halving
Bitcoin’s halving has reduced mining rewards by 50%, and entities that use computing power to find new blocks will see reduced revenue. Reports suggest no signs of capitulation of the miners yet and also companies like Marathon moved double mining capacity this year.
However, many expect to see changes in the Bitcoin mining market as well as profit margins changed due to halving. The co-founder of Arrows Markets told crypto.news that the barrier to entry has increased and that existing operators may look to mergers or acquisitions to strengthen operations.
“Those who enter may only succeed by focusing on extreme efficiency or alternative models, potentially including Bitcoin mining as part of a diversified mining portfolio to spread risk and chase better returns.”
Edward Mehrez, co-founder of Arrows Markets