Pennsylvania-based power generator and bitcoin mining firm Stronghold Digital is planning to sell itself as the economics of bitcoin mining turns difficult following the recent halving event.
The company said in a press release announcing its Q1 financial earnings on Thursday that it has begun a formal strategic review process with the help of outside financial and legal advisors.
“The Company is considering a wide range of alternatives to maximize shareholder value, including, but not limited to, the sale of all or part of the Company, or another strategic transaction involving some, or all of, the assets of the Company,” Stronghold said in the release.
Stronghold said it has no deadline or definitive timetable for the completion of the planned strategy shift, or any assurance a transaction will consummate at all.
The move marks the latest sign of further consolidation of the bitcoin mining industry following the fourth bitcoin halving event, which has caused bitcoin’s hashprice to drop to all-time lows under $50/PH/s.
Stronghold pivoted into bitcoin mining and went public in 2021, utilizing its power generation capacity fueled by waste coal in Pennsylvania. However, its bitcoin mining segment was impacted in 2022 as the high financial leverage it took in 2021 weighed heavily on the company’s operation during the bear market.
Stronghold mined 546 BTC during the first quarter this year with 4.1 EH/s of hashrate and a proprietary power capacity of 130 megawatts. It reported a mining revenue of $21.3 million, which accounted for 77% of its total revenue.