Bitcoin Miner Bitfarms to Acquire Stronghold Digital Mining in $125 Million MergerOn Wednesday, Bitfarms Ltd. announced plans to acquire Stronghold Digital Mining Inc. in a stock-for-stock merger valued at approximately $125 million, along with the assumption of $50 million in debt. The deal, expected to close in the first quarter of 2025, aims to expand Bitfarms’ energy portfolio in the U.S. and integrate power generation capabilities into its operations.Bitfarms to Boost Power Capacity With Stronghold MergerAccording to the announcement, the acquisition would increase Bitfarms’ power capacity by up to 307 megawatts (MW) and is projected to bring the company’s energy portfolio to over 950 MW by the end of 2025. Stronghold’s assets include 165 MW of power generation capacity and two power plants in Pennsylvania recognized for their environmental contributions.
The deal is anticipated to provide Bitfarms with the infrastructure needed to enhance its energy efficiency and mining operations while also entering the high-performance computing and artificial intelligence (AI) sectors. Under the merger agreement, Stronghold shareholders will receive 2.52 shares of Bitfarms for each share of Stronghold, reflecting a 71% premium on Stronghold’s recent stock price.
The transaction is subject to regulatory approvals and other customary conditions, with Stronghold shareholders expected to own about 10% of the combined company post-merger. The announcement follows Bitfarms’ recent disclosure of leadership shifts, which occurred during its ongoing dispute with Riot Platforms.
Source: https://news.bitcoin.com/bitcoin-miner-bitfarms-to-acquire-stronghold-digital-mining-in-125-million-merger/
