Bitcoin
Bitcoin miner Stronghold explores sale after halving
Following the halving, some Bitcoin miners are reorganizing operations to adjust to the new paradigm and one entity is considering all options.
According to a Press releaseStronghold Digital Mining is exploring options to maximize shareholder value, including a complete sale of the company and its assets.
Bitcoin (Bitcoin) the mining company 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 share prices and the valuations commanded by market competitors.
Google Finance showed a 62% decline in Stronghold’s SDIG shares this year, although other Bitcoin miners like Riot and Marathon Digital have also seen falling share prices.
After Stronghold released its plan, SDIG jumped 7% in premarket trading as the Bitcoin miner evaluated available avenues. The company reportedly hired financial advisors Cohen and Company Capital Markets for this purpose.
“Stronghold’s Board and management team are committed to maximizing value for our shareholders and to that end have initiated a comprehensive 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 deploy computing power to find new blocks will see reduced revenues. Reports do not suggest signs of mining capitulation yet and companies like Marathon too moved double mining capacity this year.
Still, many expect to see changes in the Bitcoin mining market as profit margins shrink. changed due to reduce by half. The co-founder of Arrows Markets told crypto.news that the barrier to entry has increased and that existing players could pursue mergers or acquisitions to bolster operations.
“Those who enter may succeed simply by focusing on extreme efficiency or alternative models, potentially including Bitcoin mining as part of a diversified mining portfolio to spread risk and seek better returns.”
Edward Mehrez, co-founder of Arrows Markets