Bitcoin miner Stronghold Digital Mining (SDIG) has began exploring strategic alternate options that might embrace a possible sale of the corporate.
“The corporate is contemplating a variety of alternate options to maximise shareholder worth, together with, however not restricted to, the sale of all or a part of the Firm, or one other strategic transaction involving some, or all of, the belongings of the Firm,” the miner mentioned in a press release on Thursday.
Stronghold, the corporate that turns piles of coal waste into vitality to mine bitcoin, mentioned the transfer comes as there’s a “valuation dislocation” of the inventory in comparison with its different mining friends available in the market.
“Stronghold’s Board and administration staff are dedicated to maximizing worth for our shareholders and, to that finish, have commenced a complete and thorough assessment of strategic alternate options,” mentioned Greg Beard, chairman and chief govt officer of Stronghold.
The corporate has employed Cohen and Firm Capital Markets as monetary advisers and mentioned there is no particular timeline set for the completion of the assessment. The shares rose practically 7% within the pre-market buying and selling on Thursday.
The inventory fell 62% this 12 months, whereas friends comparable to Riot Platforms (RIOT) and Marathon Digital (MARA) fell about 40%. Bitcoin rose 39% to this point this 12 months.
Mergers and acquisitions have been touted as one of many areas that may acquire momentum after the halving, which made the mining panorama extra aggressive for the miners as rewards had been reduce in half.
There has already been an uptick in M&As within the mining trade as miners with stronger stability sheets began to purchase up belongings which might be buying and selling at low valuations.
