The Canadian Bitcoin mining company Bitfarms has successfully completed its acquisition of Stronghold Digital Mining, marking the largest merger ever recorded between two publicly traded Bitcoin mining firms.
As stated in a press release on March 17, Bitfarms finalized the all-stock deal with Stronghold Digital Mining. The merger received approval on February 28, with a striking 99.6% of votes cast endorsing the acquisition, which accounts for approximately 54.5% of Stronghold’s outstanding shares.
Through a stock-for-stock transaction, Bitfarms granted Stronghold shareholders 2.52 of its own shares for each Stronghold share they owned. The deal resulted in the issuance of nearly 60 million Bitfarms shares alongside over 10.5 million warrants. Consequently, Stronghold’s stock was delisted from Nasdaq and ceased trading.
Bitfarms’ stock began the week with a slight increase but quickly lost momentum, trading lower by about 1% during the early afternoon.
Acquisition Highlights
With Stronghold now fully merged into Bitfarms, the mining powerhouse has increased its energy capacity to 623 megawatts, which includes its current power generation and grid import capabilities in Pennsylvania.
Moreover, Bitfarms now oversees nearly an additional Exahash of computing power, elevating its total to 18 Exahash. An earlier arrangement that allowed Stronghold to host miners for third parties is now being repurposed for Bitfarms’ direct mining efforts.
Bitfarms also anticipates the opportunity to transform two of Stronghold’s power sites into significant AI and computing hubs, planning to collaborate with industry leaders to construct these facilities.
“With Stronghold’s array of power assets, coupled with our operational acumen and financial stability, we are well-equipped to generate long-term value for our shareholders by advancing our U.S. strategy and building a scalable HPC/AI business,” stated Ben Gagnon, the Chief Executive Officer of Bitfarms.
In addition to enhancing its power assets, this acquisition has increased Bitfarms’ share of the North American energy market from 6% to a substantial 80%.