The post Bitcoin mining firm Bitfarms acquires Stronghold for $125 million in stock deal appeared on BitcoinEthereumNews.com.

Key Takeaways Bitfarms agrees to acquire Stronghold for $125 million in stock amid Riot’s takeover attempt. The acquisition aims to boost Bitfarms’ mining capacity through Stronghold’s power generation assets. Bitcoin (BTC) mining firm Bitfarms Ltd. has agreed to acquire Stronghold Digital Mining Inc. for approximately $125 million in stock, as reported by Bloomberg. The deal comes as Bitfarms fends off a takeover attempt by Riot Platforms Inc. Under the terms of the agreement, Stronghold shareholders will receive 2.52 Bitfarms shares for each share held, representing a premium of around 70% of Stronghold’s 90-day volume-weighted average price on Nasdaq as of Aug. 16. The transaction also includes assumed debt of about $50 million. The acquisition aims to boost Bitfarms’ mining capacity by providing more access to power through Stronghold, which has its own power generation and interconnection with local grids, burning coal to generate energy for its mining operations. The deal also occurs against the backdrop of Riot Platforms’ unsolicited $950 million offer to buy Bitfarms, which the company rejected in April. In response, Bitfarms adopted a “poison pill” defense strategy and scheduled a special shareholder meeting for Oct. 29 to address Riot’s attempt to replace three board members. Bitfarms reported $41.5 million in revenue for the second quarter, while Stronghold posted a loss of $21.3 million on revenue of $19.1 million. Riot, one of the world’s largest Bitcoin mining companies, had $70 million in revenue during the same period. This move comes as the crypto mining sector faces potential revenue challenges following the Bitcoin halving event, which reduced daily mining rewards. Miners are seeking expansion through acquisitions to mitigate these impacts. Booming hashrate Riot revealed in July that its hashrate grew 50% between May and June this year, reaching 22 exahashes per second (EH/s). Notably, this is 106% larger than…

---

Filed under: News - @ August 21, 2024 12:28 pm