Shares of Bitcoin Miner Stronghold Digital Surges 13% Amid Sale Plans

Bitcoin mining firm Stronghold Digital Mining Inc saw its shares rise by a remarkable 13% earlier today, following reports that the firm is contemplating sales. Although the increase is notable, the stock is still down by approximately 53% this year. 

Rising Competition for Stronghold Digital

In November 2021, shares of Stronghold Digital traded as much as $332.60. However, at the time of this writing, the shares are trading at $3.10. According to a report from Bloomberg, the company is brooding over sales and other options as a result of rising competition following the recent Bitcoin halving event, which cut miners’ incentives by half.

Stronghold Digital disclosed in a statement that its decision is based on its valuation being lower than that of its competitors in the industry. As a reminder, the recent Bitcoin halving was the fourth in history activated on the mainnet. 

This latest event helped reduce the Bitcoin reward per block from 6.25 BTC to 3.125 BTC. With Bitcoin’s supply now reduced, the mining industry is experiencing a drop in profit margins as more wealthy players enter the market.

Crypto Miners Experiencing Losses

Notably, the fourth halving event sliced the daily production of BTC from 900 to 450, resulting in annual revenue losses of about $10 billion for the industry. 

On the sideline, Hashprice, a key indicator of revenue for Bitcoin miners, recently hit record lows, days after the halving. However, mining difficulty, a measure of computing power to mine Bitcoin, continues to climb. Surprisingly, the higher this figure gets, the more competitive and difficult it is to earn the digital asset.

Per Bitcoin’s price current movement, the cryptocurrency trades at $59,237, up by 4.5% in the past 24 hours. The trading volume stands at $41.3 billion, representing a decline of 7.45%.