Bitfarms Announces Acquisition of Stronghold Digital Mining in $125 Million Deal

Bitfarms Ltd., a leading Bitcoin data center company, has recently announced its plans to acquire Stronghold Digital Mining in a stock-for-stock merger valued at $125 million. This strategic move will significantly expand Bitfarms’ energy portfolio and drive its growth in the United States.
Strategic Expansion and Energy Investment
Bitfarms’ acquisition of Stronghold aligns with its strategic goal to diversify and expand its energy portfolio. By focusing on the U.S. market, Bitfarms aims to achieve a 50% energy capacity in the country by the end of 2025. This acquisition is projected to increase Bitfarms’ energy portfolio to over 950 megawatts by the end of 2025, with potential further expansion in subsequent years.
Stronghold’s Assets and Environmental Initiatives
Stronghold Digital Mining is recognized for its focus on Bitcoin mining and environmental remediation. The company boasts a hashrate of 4.0 exahashes per second and 165 MW of nameplate generated power capacity as of June 30, 2024. Stronghold’s assets, including power plants in Pennsylvania, contribute to its environmental benefits through the reclamation of toxic waste and energy conversion.
Environmental and Financial Benefits
The acquisition of Stronghold by Bitfarms is expected to enhance Bitfarms’ environmental initiatives. Stronghold’s Carbon Capture Projects and reclamation efforts offer significant environmental benefits, including the potential to capture over 60,000 tons of carbon dioxide annually. Additionally, the acquisition is projected to achieve $10 million in annual cost synergies.
Leadership Perspectives and Transaction Details
Both companies’ Boards of Directors have unanimously approved the merger, which is set to close in the first quarter of 2025 pending regulatory approvals. Stronghold shareholders will receive 2.52 shares of Bitfarms for each share of Stronghold they own, representing a premium of 71% to Stronghold’s average price. Bitfarms’ CEO, Ben Gagnon, and Stronghold’s CEO, Gregory Beard, expressed optimism about the merger’s ability to create value for both companies and their shareholders.
Conference Call and Advisory Support
Bitfarms and Stronghold will host a conference call on August 21, 2024, to discuss the transaction in detail. Financial advisory support for the merger is provided by Moelis & Company LLC for Bitfarms and Houlihan Lokey Capital, Inc. for Stronghold.
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