Stronghold Digital Mining, as per its first-quarter financial report, is contemplating the sale of the company in order to optimize shareholder value, Cointelegraph has learned. The company is exploring various options to enhance its share price, including the potential sale of either the entire company or a portion of it, as well as other strategic transactions involving its assets. The firm emphasized that there is no specific timeframe or deadline for its “strategic alternatives process” and it cannot guarantee the execution of any proposals, agreements, or transactions resulting from the review.
According to a statement from Stronghold CEO Greg Beard, the board and management team have initiated a comprehensive and meticulous evaluation of strategic alternatives to maximize value for shareholders. Beard also disclosed that Stronghold currently possesses more than 130 megawatts of fully operational data center capacity, with a hash rate capacity of 4.1 exahashes per second (EH/s), and the potential to expand to over 7 EH/s by upgrading its fleet with the latest-generation Bitcoin miners.
“In contrast to most other Bitcoin miners, we own a vast stretch of land spanning over 750 acres, which provides us with ample access to water and fiber. Additionally, we have control over the transmission lines that connect our assets to the highly desirable PJM grid. Furthermore, our two merchant power plants, which are wholly owned, have a combined net output capacity of over 160 MW and possess significant potential for carbon capture,” explained Beard.
The CEO also highlighted that the existing 130 MW Bitcoin mining capacity could potentially be expanded to over 400 MW, either for Bitcoin mining purposes or to support advanced computing utilized in artificial intelligence and machine learning applications.
Stronghold’s Q1 2024 financial results showcased revenues of $27.5 million, representing 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 miscellaneous activities. The company noted that its fixed costs for Q1 2024 decreased by 11% year-on-year due to the implementation of cost controls. These fixed costs encompassed 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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