As the company is in a dire situation, it is considering selling off its bitcoin mining devices. The company raised $105 million in a funding round, and now plans to sell the devices to stay afloat. Two-thirds of its mining machines have already been returned to a lender. This decision comes as no surprise to anyone in the bitcoin mining industry, but it is a sad one for the company. Read on for some insights into the company’s financial future.
Stronghold Digital Mining is an alternative energy-powered bitcoin miner
An alternative energy-powered bitcoin miner is coming to the forefront of the bitcoin mining industry. The company, Stronghold Digital Mining, uses coal refuse to power its supercomputers. By reclaiming this byproduct, Stronghold is able to sell it to other companies for profit, while also protecting the environment. The company also manages its Bitcoin assets responsibly, only converting as much as necessary to stay afloat. While this model isn’t 100% renewable, it’s a step in the right direction.
It has raised $105 million in a funding round
The bitcoin mining company Stronghold Digital Mining has raised $105 million from two private placements and has plans to use the proceeds to restore Pennsylvania’s coal mines. The company plans to use this funding for crypto mining hardware, waste coal clean-up facilities, and other endeavors. Both fundraises were disclosed in SEC filings earlier this year. The company’s first project is the Scrubgrass Plant, which converts waste coal to power. It plans to remove 200 tons of waste coal for every bitcoin mined by the Stronghold Mining Farm.
It will sell devices to stay afloat
The industry-leading Bitcoin mining company has no choice but to sell off devices to stay afloat as its debt pile grows. The move comes as Bitcoin prices plunge 65%. The cryptocurrency has jumped back to $25,000 but is still 65% below its all-time high of $69,045. The current price of Bitcoin is $23,523, down just over 1% from last week. In response, Stronghold Digital delayed the release of its second-quarter financial report, citing a bargaining process.
It has returned two-thirds of its mining machines to a lender
A recent earnings release from Stronghold Digital Mining (NASDAQ: SHLD) disclosed two major strategic shifts for the company. First, the company is returning two-thirds of its mining machines to a lender, wiping out most of its mortgage debt. Second, the company is now selling its electricity to the grid, which is more profitable than selling the energy generated by those machines to properties. This decision will help the company avoid foreclosure.
It has been selling power to the grid while mining bitcoin
A vertically integrated business model allows Stronghold to own power assets as well as generate bitcoin. This gives the company differentiated opportunities to create value. The company has historically been able to produce value by selling power in the real time market, although it has recently reduced this exposure due to lower profits. With this model, Stronghold is able to maximize profitability and help the grid remain stable. The company plans to expand its mining fleet and will continue to sell power in the future.