Bitfarms has expanded its operations in the US with the acquisition of Stronghold Digital Mining in a stock-for-stock merger valued at approximately $125 million. The agreement also includes an additional assumption of $50 million in debt.

According to the Bitcoin mining firm, this deal marks a significant milestone in its strategy to expand operations and diversify energy sources. The merger will add 4 EH/s to Bitfarms’ existing hash rate, with the potential to exceed 10 EH/s by 2025 through fleet upgrades, Bitfarms mentioned in its official communication.

Strengthening US Operations

Additionally, the deal will reportedly integrate Stronghold’s 165 MW of nameplate power capacity into Bitfarms’ energy portfolio, bringing the company closer to its goal of achieving a balanced energy mix, with approximately 50% of its power sourced from US operations by the end of 2025.

The acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of Stronghold aims to increase Bitfarms’ power capacity and expand the firm’s US energy footprint. Stronghold’s assets include 142 MW of Pennsylvania-New Jersey-Maryland Interconnection import capacity, with long-term plans to potentially increase this to 790 MW.

Speaking about the acquisition, Ben Gagnon, Bitfarm’s Chief Executive Officer, said: “With this transaction, we expect to expand and rebalance our energy portfolio to 950 MW with nearly 50% in the US by the end of 2025 and have visibility on multi-year expansion capacity up to 1.6 GW with approximately 66% in the US, up from approximately 6% today.”

We are pleased to announce that #Bitfarms has entered into a definitive agreement to acquire @Stronghold_DM.

Stronghold brings to Bitfarms vertically integrated crypto asset mining operations and access to the strategically desirable PJM grid, the largest wholesale electricity… pic.twitter.com/HemcStdETS

— Bitfarms (@Bitfarms_io) August 21, 2024

Stronghold owns and operates two merchant power plants in Pennsylvania. These facilities, recognized as Tier 2 Alternative Energy Sources, convert mining waste into power through a specialized process, providing significant environmental benefits. The merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term has been unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2025, pending regulatory approvals.

New Ownership Structure

Upon completion, Stronghold shareholders will own approximately 10% of the combined company, and Bitfarms will benefit from an estimated $10 million in annual cost.

Recently, Bitfarms appointed Ben Gagnon as CEO amid the company’s plans to diversify operations beyond Bitcoin mining. Gagnon, formerly Chief Mining Officer, has reportedly been a key player in Bitfarms' rise within the Bitcoin mining industry. Bitfarms is reportedly exploring new areas such as energy generation, heat recycling, energy trading, and high-performance computing for artificial intelligence.