The post Bitfarms Acquires Stronghold Digital for $175M Stock & Debt appeared on BitcoinEthereumNews.com.

Bitcoin Mining company Bitfarms acquires Stronghold Digital Mining for nearly US$175 Million stock and debt. The merger will cost $125 Million of stocks and around $50 Million of debt. The official announcement states that under the terms of the Merger Agreement, Stronghold shareholders will get 2.52 shares of Bitfarms for each share of Stronghold they hold. This represents consideration per share of $6.02 and a 71% premium to the Stronghold 90-day volume-weighted average price on Nasdaq as of August 16, 2024. It added, “At close, Stronghold shareholders are expected to own just under 10% of the combined company, based on the current issued and outstanding shares of each company.” With this acquisition, Ben Gagnon, Chief Executive Officer of Bitfarms, expects to expand and rebalance our energy portfolio to 950 MW with nearly 50% in the U.S. by the end of 2025 and have visibility on multi-year expansion capacity up to 1.6 GW with approximately 66% in the U.S. Gregory Beard, Chief Executive Officer, President and Chairman of Stronghold, said, “We have been in conversation with Bitfarms for a long time. Having received and reviewed numerous bids in our Strategic Alternatives Review process, we believe that we found the ideal partner. Bitfarms has the vision and financial fortitude to unlock the value of Stronghold’s assets, and, given the accretion and future growth of the combined business, we are pleased that our shareholders will have the opportunity to participate in the significant upside potential.” Beard added that the firm looks forward to leveraging Bitfarms’ operational expertise and proprietary data analytics system to optimize sites and “return once-blighted land to local communities”. Stronghold holds over 750 acres of land with over 1,100 additional acres along with two merchant power plants: the Scrubgrass and Panther Creek Facilities in Pennsylvania. Arnold Lee, Director of Sustainability…

---

Filed under: News - @ August 23, 2024 5:25 am