Stronghold Digital Mining is exploring the possibility of selling the company to enhance shareholder value, as stated in its financial report for the first quarter. According to information shared with Cointelegraph, the company is considering various options to increase its share price, such as selling “all or part of the company” or engaging in strategic transactions involving its assets. However, there is no specific timeframe set for this “strategic alternatives process,” and the company cannot guarantee the execution of any proposals, agreements, or transactions resulting from the review.
CEO Greg Beard emphasized that the board and management team have initiated a comprehensive and meticulous evaluation of strategic alternatives to maximize shareholder value. Beard also disclosed 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). Moreover, the company has the potential to expand its capacity to more than 7 EH/s by upgrading its fleet with Bitcoin miners of the latest generation.
Beard highlighted Stronghold’s unique advantages compared to other Bitcoin miners. The company owns more than 750 acres of land with ample access to water and fiber. It also possesses the transmission lines that connect its assets to the desirable PJM grid. Additionally, Stronghold owns two merchant power plants with a net output capacity of over 160 MW and significant potential for carbon capture.
The CEO further stated that the existing Bitcoin mining capacity of 130 MW could potentially be expanded to over 400 MW, catering to either Bitcoin mining or advanced computing for applications such as artificial intelligence and machine learning.
Stronghold’s Q1 2024 financial results showed revenues of $27.5 million, marking 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 reported a 11% year-on-year reduction in fixed costs for Q1 2024, achieved through cost controls. These fixed costs encompassed operational and maintenance expenses, as well as general and administrative expenses, excluding stock-based compensation. Stronghold recorded a net income of $5.8 million in the first quarter.
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