Key Takeaways
- Bitfarms has acquired Stronghold Digital Mining for $125 million.
- Stronghold shareholders will receive 2.52 Bitfarms shares per share.
- The acquisition will expand Bitfarms' energy capacity to 950 MW by 2025.
Bitfarms, a major Bitcoin mining company, has acquired Stronghold Digital Mining in a $125 million deal, which includes assuming $50 million in debt.
Stronghold shareholders will receive 2.52 Bitfarms shares for every Stronghold share, representing a 71% premium over Stronghold’s 90-day average price.
This acquisition is expected to add 307 megawatts of power to Bitfarms’ portfolio, increasing its total capacity to over 950 megawatts by 2025. Ben Gagnon, CEO of Bitfarms, called the deal a “transformative acquisition,” adding that it would help diversify the company’s energy sources and expand beyond Bitcoin mining.
Stronghold’s shareholders will own nearly 10% of the combined company.
The company’s recent financial results showed revenues of $27.5 million in the first quarter of 2024, with $26.7 million generated from its Bitcoin operations.
