Bitcoin miner Bitfarms stated it has entered right into a merger settlement to accumulate Stronghold Digital Mining for $125 million in fairness, together with $50 million in assumed debt.
In a joint assertion on August 21, the 2 firms revealed that their boards of administrators had unanimously accredited the transaction. The deal – topic to regulatory approval and different situations – is anticipated to shut within the first quarter of 2025.
As a part of the acquisition, Stronghold shareholders will obtain 2.52 Bitfarms shares for every Stronghold share they maintain. After the merger, Stronghold stockholders are anticipated to personal lower than 10% of the mixed entity.
Enlargement potentials
The merger may enhance Bitfarms' capability to 307MW, boosting its objective of reaching 950MW by the tip of 2025. The event comes as Bitfarms continues to discover increasing its capability to assist high-performance computing (HPC) and AI. its bitcoin mining operations.
Bitfarms CEO Ben Gagnon revealed that the merger adopted three years of negotiations and stated the deal would guarantee a powerful future for the mining operations. He stated:
“With this transaction, we anticipate increasing and rebalancing our energy portfolio to 950 MW, with practically 50% positioned within the US by the tip of 2025. We additionally see the potential for multi-year enlargement as much as 1.6 GW, with round 66% within the US, up from round 6% at present.”
Riot Platforms takeover efforts
This acquisition comes towards a hostile try by Riot Platforms to take over Bitfarms.
Final week, Riot revealed that it had elevated its stake in Bitfarms to 85.3 million shares. Meaning Wall Avenue's third-largest bitcoin miner owns 18.9% of the Canadian mining firm, including a brand new dimension to its ongoing efforts to place stress on Bitfarms administration following a failed $950 million takeover bid in April.
Riot has since adopted an strategy that has led to important adjustments to the Bitfarms board, together with the sudden departure of co-founder Nicolas Bonta and the appointment of Gagnon because the agency's CEO.
