Originally published on: August 21, 2024
Bitfarms, a leading player in Bitcoin mining, has marked a milestone by acquiring Stronghold Digital Mining in a deal worth approximately $125 million, inclusive of assumed debt estimated at around $50 million. This strategic move is set to bolster Bitfarms’ power capacity significantly, potentially adding up to 307 megawatts and propelling the company’s energy portfolio to over 950 MW by 2025.
Empowering the Future of Bitfarms
Ben Gagnon, the CEO of Bitfarms, expressed his excitement about the acquisition, emphasizing its transformative nature and the positive outlook it brings to Bitfarms. The deal signifies a significant step towards ensuring a robust future for the company.
Enhanced Market Performance
Following the announcement, Stronghold’s stocks surged by about 55% in pre-market trading on Nasdaq, reaching $4.55. Stronghold shareholders are poised to benefit, receiving 2.52 shares of Bitfarms for each share of Stronghold they hold, amounting to $6.02 per share, representing a substantial 71% premium over the 90-day volume-weighted average price of Stronghold on Nasdaq.
Strategic Vision for Growth and Diversification
Gagnon provided insights into the acquisition, highlighting the plan to offer Stronghold shareholders nearly 10% ownership in the combined entity. By integrating with power generation, expanding energy trading capabilities, and securing prime sites for high-performance computing and artificial intelligence, Bitfarms aims to diversify its operations, moving beyond Bitcoin mining to drive long-term shareholder value.
Stronghold’s Journey Towards Acquisition
Stronghold Digital Mining had been contemplating a sale for some time. Despite posting robust first-quarter results in 2024, with revenues reaching $27.5 million, the company explored avenues to alleviate its debt burden and embarked on the path to offer securities worth up to $250 million earlier this year.
In Conclusion
Bitfarms’ acquisition of Stronghold Digital Mining not only sets the stage for enhanced operational capabilities and market presence but also underscores the company’s commitment to innovation and sustainable growth in the dynamic landscape of cryptocurrency mining and energy trading.
