Cryptocurrencies are currently declining in value. A large crypto company is also affected, which has now sold thousands of computers. The company is said to be making more money with electricity than with Bitcoin.
Cryptocurrencies are a risky business. Companies or companies that have taken too many risks are regularly caught. This is how a crypto bank was recently caught, which had gambled away 1 billion euros.
Now another company has also been hit, which made millions in losses as a result of the crash. In the meantime, the company seems to have found a better deal in selling electricity.
Company sold thousands of PCs to get out of debt
Which company is it? Stronghold Digital Mining is one of the companies specializing in mining cryptocurrencies. But with the sharp drop in value of Bitcoin and Co, this company also made a loss.
The online magazine Tom’s Hardware has now reported that the company is said to have sold more than 26,000 mining rigs in order to pay off debts. The losses are said to have amounted to around 70 million euros.
Nevertheless, thousands of mining rigs remain in the company’s possession in order to be able to continue mining cryptocurrencies. But that’s no longer the company’s only source of income. It is actually more exciting that Stronghold Digital Mining has a completely different mainstay, namely power generation. And this is exactly how the company is helping itself through the crisis.
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Mining company sells electricity from coal waste
How exactly does this work? Stronghold Digital Mining not only owns large cryptocurrency mining rigs, but also owns two power plants. Both of these power plants, Scrubgrass and Panther Creek in Pennsylvania, are fueled with waste coal that comes from coal mining.
This waste is not used there and the company produces electricity from it. The coal tailings are classified as a Tier II alternative energy resource, which is said to be equivalent to hydroelectric power, according to the Pennsylvania company (via strongholddigitalmining.com). Circulating fluidized bed technology, which is known for low-emission combustion and is also used in Germany, is to be used to generate electricity. In total, the two power plants together produce 165 MW (80 + 85).
Since the company currently only uses around 60 MW for mining, it can sell the rest. This is worthwhile for the company, since electricity prices are also rising sharply in the USA. This second pillar also makes Stronghold Digital Mining significantly more flexible than other companies that only rely on mining.
More stories about cryptocurrencies: Private individuals have already lost a lot of cryptocurrency. For example, one game relied on so-called NFTs to give people an incentive. The game shared some similarities with the Pokémon franchise: the focus is on trading and breeding creatures. But now hackers captured cryptocurrency worth 550 million euros:
Hackers steal €550 million from NFT game – Pokemon-like game was unfortunately too successful