Bitcoin miner Stronghold Digital Mining (SDIG) has started exploring strategic choices that could doubtless consist of a possible sale of the firm.
“The firm is serious a pair of broad vary of choices to maximize shareholder worth, at the side of, but no longer restricted to, the sale of all or allotment of the Company, or one other strategic transaction intelligent some, or all of, the sources of the Company,” the miner stated in an announcement on Thursday.
Stronghold, the firm that turns piles of coal raze into energy to mine bitcoin, stated the switch comes as there is a “valuation dislocation” of the stock when in contrast to its other mining peers in the market.
“Stronghold’s Board and administration team are committed to maximizing worth for our shareholders and, to that discontinue, like commenced a entire and thorough review of strategic choices,” stated Greg Beard, chairman and chief executive officer of Stronghold.
The firm has hired Cohen and Company Capital Markets as monetary advisers and stated there is never any boom timeline set up for the completion of the review. The stock fell 62% this year, while peers such as Insurrection Platforms (RIOT) and Marathon Digital (MARA) fell about 40%. Bitcoin rose 39% to this point this year.
Mergers and acquisitions were touted as one of many areas that can construct momentum after the halving, which made the mining landscape more competitive for the miners as rewards were lower in half.
There has already been an uptick in M&As in the mining industry as miners with stronger steadiness sheets started to aquire up sources that are trading at low valuations.
Read more: Bitcoin Halving Is Poised to Unleash Darwinism on Miners
