Stronghold Digital Mining is exploring the possibility of selling the company in order to maximize the value for its shareholders, as stated in its financial report for the first quarter. According to information shared with Cointelegraph, the company is considering various alternatives to enhance its share price, including selling “all or part of the company” or engaging in strategic transactions involving its assets.
The report emphasizes that there is no specific deadline or timetable set for the “strategic alternatives process,” and the company cannot guarantee that any proposals, agreements, or transactions will be executed as a result of the review.
Stronghold CEO Greg Beard stated that the board and management team have initiated a comprehensive review to identify strategic alternatives that will optimize value for shareholders. Beard also highlighted that Stronghold currently possesses over 130 megawatts of fully operational data center capacity, with an installed hash rate capacity of 4.1 exahashes per second (EH/s). Additionally, the company has the potential to expand its capacity to over 7 EH/s by upgrading its fleet with the latest Bitcoin miners.
Beard further explained that unlike most other Bitcoin miners, Stronghold owns more than 750 acres of land with abundant access to water and fiber. The company also owns the transmission lines that connect its assets to the PJM grid, which is attractive for energy distribution. Furthermore, Stronghold’s two merchant power plants are wholly owned and have a net output capacity of over 160 MW, as well as significant potential for carbon capture.
The CEO highlighted that the existing 130 MW Bitcoin mining capacity could be expanded to more than 400 MW, serving either Bitcoin mining or advanced computing applications such as artificial intelligence and machine learning.
In its first-quarter results for 2024, Stronghold reported revenues of $27.5 million, reflecting a 27% increase compared to the previous quarter and a 59% increase year-on-year. The revenue breakdown consisted of $26.7 million from cryptocurrency operations, $700,000 from energy sales, and an additional $100,000 from other activities.
The company also stated that its fixed costs for the first quarter of 2024 decreased by 11% compared to the previous year, thanks to the implementation of cost controls. These fixed costs include operational and maintenance expenses, as well as general and administrative expenses, excluding stock-based compensation. Stronghold reported a net income of $5.8 million in the first quarter.
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