Wednesday, August 28, 2024 – Bitcoin mining company Bitfarms announced on August 20 that it had entered into a merger agreement with Stronghold Digital in a $175 million stock and debt deal.
Accordingly, Bitfarms will acquire a $125 million equity transaction and will assume Stronghold’s existing debt value of $50 million, a press release said.
The boards of both companies approved the transaction, expecting it to close by the first quarter of 2025.
Stronghold shareholders will receive 2.52 shares of Bitfarms for each share they own.
The acquisition of Bitfarms will expand to 307 megawatts of power capacity, surging over 950 megawatts prior to 2025.
The shareholders of Stronghold would be interested in owning 10% of the combined company after the transaction is completed.
The two commercial power plants of Stronghold located in Pennsylvania would be beneficial for both companies to be utilized for bitcoin mining, energy trading, and HPC/AI.
Recently, the fourth bitcoin halving red flagged miners as their revenues dropped; nevertheless, the strategic plan of Bitfarms tapped into integrated crypto mining operations with the US giant.
