Bitcoin miner Stronghold Digital Mining (SDIG) has begun considering strategic alternatives, including the possibility of selling the company.
“In order to maximize stockholder value, we are considering a wide range of alternatives, including but not limited to the sale of all or a portion of our company or another strategic transaction involving some or all of our assets. ” the miner said in a press release on Thursday.
Stronghold, a company that mines Bitcoin by converting mountains of coal waste into energy, said the move was made due to “valuation misalignment” in Bitcoin stocks compared to other miners in the market. He said that he was injured.
“Stronghold's Board of Directors and management are committed to maximizing shareholder value and to that end, we have initiated a comprehensive and thorough review of strategic alternatives,” said Stronghold's Chairman and Chief Executive. Managing Director Greg Beard said.
The company has retained Cohen & Company Capital Markets as its financial advisor and said no specific timeline has been set for completing the review. Shares rose nearly 7% in premarket trading Thursday.
The company's stock price has fallen 62% since the beginning of the year, while peers like Riot Platforms (RIOT) and Marathon Digital (MARA) have also fallen about 40%. Bitcoin has risen 39% since the beginning of the year.
Mergers and acquisitions have been touted as one of the areas that will gain momentum after the halving, and the halving of fees has made the mining environment more competitive for miners.
The mining industry is already seeing an uptick in M&A as miners with stronger balance sheets start buying up assets that are trading at lower valuations.
