Stronghold Digital Mining downgraded at Cowen on reduced hash rate capacity of bitcoin miner

Cowen analyst Stephen Glagola downgraded his rating on Stronghold Digital Mining (NASDAQ:SDIG) pointing out to the miner's reduced hash rate capacity amid a debt restructuring and shift to grid sales.The analyst said SDIG has executed a series of debt restructuring transactions under a equipment financing agreements which eventually has reduced SDIG's hash rate capacity to 1.4 EH/s, down from prior guidance of 4.1 EH/s by 2022 year-end and initial guidance of 8.0 EH/s.Glagola noted SDIG will be ending 2022 with 16K miners and 1.4 EH/s capacity, almost at the same level as 2021's 14.7K miners and 1.3 EH/s capacity.Moreover, SDIG management's credibility has come into the question as they strategise to shift the majority of its power generation to grid sales over the near-term given elevated forward prices."This leaves investors with a sub-scale BTC miner going into the next halving with incremental potential of only ~26K rigs on current assets, which we find unattractive vs. others in the peer group," the analyst wrote in a research note issued on Wednesday.Rating: Cowen thus has downgraded SDIG stock to market perform from outperform beside cutting its long-standing price target straight to $2.25 from prior target of $11.SDIG shares were last seen trading at $11 in Mar. 2022 since then, have lost over 73% in price.In the intraday move, SDIG dropped 13.5% to close at $2.38 on Wednesday; however, gaining momentum in pre-market s...