Bitfarms Announces Acquisition of Stronghold For $125 Million

Bitfarms has announced the expansion of its operations in the US following the acquisition of Stronghold Digital Mining. The acquisition is a $125 million deal that involves a stock-for-stock merger. According to the announcement, the acquisition also includes a $50 million additional assumption amount for the company’s debt.

The deal comes as Bitfarms is looking to diversify its energy sources and expand its operations. Following the acquisition, the merger will add 4 EH/s to the existing hash rate of Bitfarms. Bitfarms is looking to expand to more than 10 EH/s by 2025 via fleet upgrades, according to an official statement by the company.

Bitfarms Also Wants To Expand Its Nameplate Power Capacity

Also, the acquisition deal will integrate and expand Bitfarms’ nameplate power capacity of 165 MW into Bitfarms’ energy portfolio. It will take the firm closer to its goal of reaching an energy mix, with half of its power sources sourced from its US operations by next year.

Stronghold’s acquisition will increase Bitfarms’ power capacity and grow the company’s US energy footprint. The company already boasts a strong asset of 142 MW in the Pennsylvania-New Jersey-Maryland, and there are long-term plans to raise the capacity to 790 MW.

Stronghold has two major power plants in Pennsylvania, which means the acquisition will give Bitfarms control of these plants. The facilities are known as tier-two Alternative Energy Sources. They produce power by converting mining waste via a specialized process, offering huge benefits to the environment.

Bitfarms Has Appointed A New Chief Executive Officer

Bitfarms is also updating its management board to position itself better for the industry. The company recently announced the appointment of Ben Gagnon as its Chief Executive Officer as it plans to diversify its operations. Gagnon was previously the company’s Chief Mining Officer before his new role. Bitfarms says it is exploring new areas such as energy trading, heat recycling, and energy generation.

Gagnon commented on the acquisition. He stated that the company is hoping to continue expanding its energy portfolio to 950 MW following the recent acquisition. The firm is also planning to raise the energy levels by almost 50% in the US and up to 66% by the end of next year.

Both companies’ Board of Directors have unanimously approved the acquisition and merger. It is expected to conclude in the first quarter of next year once the regulatory authorities give approval. The agreement also gives Stronghold Shareholders the ownership of about 10% of the combined company while Bitfarms will benefit from $10 million in annual cost.