Nasdaq-listed mining company Stronghold Digital Mining for sale?
Strong Digital Mining is considering selling the company in an effort to maximize shareholder value, according to its first quarter financial report.
According to information shared with Cointelegraph, the company is considering various options to increase its share price, including strategic transactions involving “all or part of the company” or other assets.
The firm said it has no deadline or timetable for the “strategic options process” and makes no assurances that any proposals, deals or transactions will materialize based on the review.
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Stronghold CEO Greg Beard said in a statement that the board and management team have begun a comprehensive and thorough review of strategic options to maximize shareholder value.
“When we compare Stronghold's market value to the value of public Bitcoin mining peers, merchant power companies, and data center and power generation assets, we see what we believe to be price displacement.”
Beard also stated that Stronghold has more than 130 megawatts of fully powered data center capacity with an installed hash rate of 4.1 exahash per second (EH/s) and an expansion capacity of more than 7 EH/s, demonstrating the fleet's high level of current. Generation Bitcoin miners.
“Unlike other Bitcoin miners, we own over 750 acres of land with water and fiber access; we own the transmission lines that connect our resources to the attractive PJM grid, and our two wholly-owned commercial power stations have over 160 megawatts of net output capacity and high carbon footprint.” They have the capacity to catch up,” Zim explained.
The CEO added that the 130MW of existing Bitcoin mining capacity could be expanded to over 400MW, which would be used for Bitcoin mining as well as for artificial intelligence and machine learning applications.
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Stronghold's Q1 2024 results included revenue of $27.5 million, up 27 percent from the prior quarter and up 59 percent year-over-year. The revenue split includes $26.7 million from cryptocurrency operations, $700,000 from energy sales and an additional $100,000 from “other activities.”
The company said Q1 2024 fixed costs fell 11 percent year over year after implementing cost controls. Fixed costs include inventory and maintenance costs and general and administrative costs, excluding stock-based compensation. Stronghold reported net income of $5.8 million in the first quarter.
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