- Bitfarms (TSX:BITF) will acquire Stronghold Digital Mining (NDAQ:SDIG) in a stock-for-stock merger valued at roughly C$170 million
- The transaction is expected to expand and rebalance Bitfarms’ energy portfolio to 950 megawatts (MW) with nearly 50 per cent in the United States by the end of 2025
- Stronghold owns more than 3.03 square kilometres of land, with options on an additional 4.45 square km, along with two merchant power plants: the Scrubgrass and Panther Creek facilities in Pennsylvania
- Bitfarms Ltd. last traded at C$3.20 per share and Stronghold Digital Mining Inc. last traded at C$3.98 per share
Bitfarms (TSX:BITF) will acquire Stronghold Digital Mining (NDAQ:SDIG) in a stock-for-stock merger valued at roughly C$170 million.
The Bitcoin data centre company will also take on the assumed debt valued at approximately C$68 million.
“With this transaction, we expect to expand and rebalance our energy portfolio to 950 megawatts (MW) with nearly 50 per cent in the U.S. by the end of 2025 and have visibility on multi-year expansion capacity up to 1.6 gigawatts (GW) with approximately 66 per cent in the U.S., up from approximately 6 per cent today,” Bitfarms’ CEO, Ben Gagnon, said in a news release. “By vertically integrating with power generation, expanding our energy trading capabilities and securing two high potential sites for HPC/AI with significant multi-year expansion potential, we are executing our strategy to diversify beyond Bitcoin mining to create greater long-term shareholder value.”
Stronghold owns more than 3.03 square kilometres of land, with options on an additional 4.45 square km, along with two merchant power plants: the Scrubgrass and Panther Creek facilities in Pennsylvania. These plants are recognized by the Pennsylvania as a Tier 2 Alternative Energy Source, placing them in the same category as large-scale hydro, because of their proven and significant environmental benefits
The New York-based company also has access to the Pennsylvania-New Jersey-Maryland Interconnection grid, the largest wholesale electricity market in the United States. With 142 MW of current import capacity, this company can provide a path to import as much as 790 MW of incremental potential power beyond 2025.
Stronghold is a cryptocurrency mining company that specializes in Bitcoin mining and offers environmental remediation and reclamation services. As of June 30, 2024, the company has a hashrate of 4.0 EH/s and a current nameplate power generation capacity of 165 MW, with the potential to increase its hashrate to around 10 EH/s in 2025 through fleet upgrades.
Bitfarms Ltd., established in 2017, is a global Bitcoin mining company that operates 12 facilities across Canada, the United States, Paraguay and Argentina.
Bitfarms Ltd. (TSX:BITF) last traded at C$3.20 per share.
Stronghold Digital Mining Inc. (NDAQ:SDIG) last traded at C$3.98 per share.
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(Top photo: Bitfarms Ltd.)
