Bitcoin mining company Bitfarms has acquired Stronghold Digital Mining for $125 million in equity plus $50 million in assumed debt. The transaction aims to expand Bitfarms' energy portfolio to 950 MW by the end of 2025.
Deal Details
Bitfarms announced its acquisition of Stronghold Digital Mining, valued at approximately $125 million in equity and $50 million in assumed debt. The merger is expected to close in the first quarter of 2025 pending shareholder and regulatory approvals. Upon completion, Stronghold shareholders will receive 2.52 shares of Bitfarms for each share they own, representing a 71% premium.
Stronghold Assets
Stronghold Digital Mining brings significant assets to the merger, including 4.0 exahashes per second (EH/s) of mining power and 165 MW of nameplate generated power capacity, with the potential to scale up to 10 EH/s by 2025 through fleet upgrades. The company also owns two environmentally recognized power plants in Pennsylvania and has access to the PJM grid, the largest electricity market in the U.S. These facilities contribute to environmental remediation efforts by converting mining waste into power.
Plans for the Combined Company
The combined company will focus on expanding its energy generation and trading capabilities while enhancing its Bitcoin mining operations. This strategic acquisition aligns with Bitfarms' long-term goal of diversifying beyond Bitcoin mining and creating greater shareholder value through environmental leadership and sustainable energy practices.
The merger of Bitfarms and Stronghold Digital Mining aims to expand capacities and strengthen market positions, achieving 950 MW by 2025, with nearly half of this capacity located in the United States.
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