Bitcoin mining company Bitfarms today announced it has completed its acquisition of Stronghold Digital Mining, giving it an additional 1.1 gigawatts of capacity across three Pennsylvania sites and increasing its presence in the PJM market.
Under the terms of the deal, Stronghold shareholders received 2.52 Bitfarms shares for every share they owned in Stronghold.
Stronghold also ceased to exist as an independent public company. It became a wholly owned subsidiary of Bitfarms. This means that Bitfarms now controls all of Stronghold's assets and operations. The company's shares were delisted from the NASDAQ.
The acquisition increases Bitfarms’ energy portfolio to 623 megawatts under management, adding 165 MW of active generation capacity and 142 MW of immediately available import capacity. The transaction is expected to result in Bitfarms’ energy portfolio being balanced by the end of 2025, comprising 80% North American and 20% international.
Bitfarms CEO Ben Gagnon noted that the acquisition will help strengthen the company's position in the US market, particularly in the PJM energy region. The deal directly supports Bitfarms' strategic focus on increasing its presence in the US and developing a large-scale HPC and AI business.
According to Gagnon, the combined PJM pipeline, with its significant gigawatt capacity and strategically located infrastructure, provides a unique opportunity to succeed in both the HPC/AI and Bitcoin mining sectors.
“Given Stronghold’s portfolio of energy assets, combined with our operational expertise and strong balance sheet, we are well positioned to create long-term value for our shareholders by executing our U.S. strategy and growing our HPC/AI business at scale,” Gagnon said.
Last August, Bloomberg reported that Bitfarms had agreed to buy Stronghold Digital Mining for about $125 million in a stock-exchange deal. The deal included about $50 million in assumed debt and expands Bitfarms' mining capabilities by providing additional power supplies.
The deal came at a time when Bitfarms was defending itself against a takeover attempt by Riot Platforms, which reportedly made an unsolicited offer for Bitfarms of $950 million.
Source: cryptonews.net
