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of The cryptocurrency crash earlier this year hit hard (opens in new tab), tank a lot of coins worth. Especially Bitcoin miners Big companies lost more than $1 billion in the crash (opens in new tab)Massive losses continue to be dealt with by Crypto companies and lenders (opens in new tab)and went on to sell much of my mining hardware to offset my losses.
tom’s hardware (opens in new tab) found financial reports of such a US-based company called Stronghold Digital Mining. The company recently sold 26,200 mining his rigs and recovered $67.4 million in debt, according to a statement.
Given that prices for most hardware are back down to earth level, it’s unlikely that these used machines would have drawn exorbitant prices. Still, this seems like a financially wise move for a company that was able to free up some cash for other investments in this period.
Stronghold Digital Mining isn’t out of the mining game. The company still has 16,000 mining machines. According to the report, the company plans to keep an eye on the market and may buy new rigs at better prices if possible. For such a large mining company, everything depends on hardware cost, mining efficiency and electricity price.
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This kind of change strategy sounds a bit risky, but Stronghold Digital Mining also owns 165MW of power generation thanks to the Scrubgrass and Panther Creek plants. They burn scrap coal, the waste product from coal mining. When it comes to sustainability, this can release many toxins into the environment, which can be mitigated if done right.
Since decommissioning these mining rigs, Stronghold Digital Mining is now selling surplus power. In the event of another crypto crash, the power itself may be worth more than the machine was mining, or at least the deficit enough to render the associated effort and waste worthless.
Of course, if cryptocurrencies don’t recover, these types of companies could end the mining part of their business entirely. please?
