Stronghold, a Bitcoin mining company, considers sale following halving event

After the halving event, several Bitcoin miners are reorganizing their operations to adapt to the new circumstances, and one company is considering various possibilities. Stronghold Digital Mining, as stated in a press release, is exploring different options to maximize the value for its shareholders, which includes a potential sale of the company and its assets. The Bitcoin miner uses leftover coal as an energy source for its cryptocurrency mining facility in Pennsylvania. Stronghold has pointed out a discrepancy between its stock prices and the valuations commanded by its competitors in the market. According to Google Finance, Stronghold’s SDIG stock has experienced a 62% decline this year, and other Bitcoin miners like Riot and Marathon Digital have also faced falling equity prices. Following Stronghold’s announcement, SDIG saw a 7% increase in pre-market hours as the Bitcoin miner assessed available pathways. The company has reportedly enlisted the help of financial advisers Cohen and Company Capital Markets for this purpose.

The Bitcoin halving event resulted in a 50% reduction in mining rewards, leading to decreased revenue for entities that utilize computing power to discover new blocks. However, there have been no signs of miner capitulation so far, and companies like Marathon have even increased their mining capacity this year. Nevertheless, the Bitcoin mining market is expected to undergo changes as the halving has altered profit margins. Arrows Markets co-founder stated that the entry barrier has now become higher, and existing players may consider mergers or acquisitions to strengthen their operations.

In addition, a recent report by Kaiko suggests that Bitcoin’s halving is unlikely to impact its price in the next 18 months.