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 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.”
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 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.
