Stronghold Digital’s Shares Jump With Bitcoin Miner Mulling Sale
- Board says valuation is out of line compared with peers
- Computing power used to mine Bitcoin continues to climb
Profit margins have been in decline for the Bitcoin mining industry.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Stronghold Digital Mining Inc. is weighing the sale of the company and other alternatives with competition increasing in the wake of a Bitcoin code update called the “halving” that drastically reduces mining revenue.
The Kennerdell, Pennsylvania-based miner, which burns waste coal to generate energy to power the specialized computers used to validate transactions on the blockchain, said in a statement Thursday that the decision is based on what the board considers to be a dislocation in Stronghold’s valuation compared with that of its industry peers.