- Bitfarms Plans To Acquire Stronghold Digital Mining
- Financial Struggles of Stronghold Digital Mining
- End of Miner Capitulation
Bitcoin mining firm Bitfarms recently announced plans to acquire Stronghold Digital Mining for $164 million. This acquisition is expected to significantly augment Bitfarms' mining capabilities amid past challenges.
Bitfarms Plans To Acquire Stronghold Digital Mining
In a press release on August 21, Bitfarms plans to offer 2.5 BITF shares for each Stronghold Digital Mining share held. The deal also includes assuming Stronghold's current debt. Earlier in May, Stronghold mentioned plans to sell the company due to severe financial stress following the Bitcoin halving event in April.
Financial Struggles of Stronghold Digital Mining
Pennsylvania-based Stronghold Digital Mining reported a loss of $21.3 million on revenue of $19.1 million for the second quarter. Consequently, Stronghold's shares have dropped by 60% since the beginning of the year. On the other hand, Bitfarms recorded $41.5 million in revenue last quarter, and the new acquisition is expected to boost its mining capacity leveraging Stronghold’s power generation and grid connections.
End of Miner Capitulation
Following the Bitcoin halving event, constant selling by Bitcoin miners, including Bitfarms, led to BTC underperforming equities and gold during Q2 2024. However, analysts predict that miner capitulation might be over, and investors are gearing up for a post-halving BTC price rally. CryptoQuant recently highlighted Hash Ribbons indicators suggesting a recovery in the mining market.
It's worth noting that Bitcoin recently reached a new all-time high hash rate of 638 exahashes per second. Analysts believe that Bitcoin mining stocks could be the best proxy bet on Bitcoin for the coming year.
Comments