Bitcoin Miner Stronghold Looking at Options, Including Sale of Company

Bitcoin miner Stronghold Digital Mining (SDIG) has begun exploring strategic alternatives that could include a potential sale of the company.

“The Company is evaluating a wide variety of alternatives to maximize shareholder value, including, but not limited to, the sale of all or a portion of the Company or another strategic transaction involving some or all of the Company’s assets.” the miner said in a press release on Thursday.

Stronghold, the company that converts coal waste piles into energy for Bitcoin mining, said the move was due to the stock’s “valuation shift” compared to other mining peers in the market.

“Stronghold’s Board of Directors and management team are committed to maximizing value for our shareholders and, to that end, have begun a comprehensive and detailed review of strategic alternatives,” said Greg Beard, Stronghold’s chairman and chief executive officer.

The company hired Cohen and Company Capital Markets as financial advisors and said no specific timeline has been set for completion of the review. Shares rose nearly 7% in premarket trading Thursday.

The stock is down 62 percent this year, while rivals like Riot Platforms (RIOT) and Marathon Digital (MARA) are down nearly 40 percent. Bitcoin is up 39% so far this year.

Mergers and acquisitions have been touted as one of the areas that will gain momentum after the halving, making the mining landscape more competitive for miners as rewards are halved.

There has already been a rise in mergers and acquisitions in the mining industry as miners with stronger balance sheets begin to acquire assets trading at lower valuations.

Read more: Bitcoin Halving Prepares to Attack Darwinism on Miners