Bitfarms Expands with Stronghold Acquisition
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Bitfarms to Acquire Stronghold Digital Mining
Bitfarms Ltd. (NASDAQ: BITF) announces a definitive merger agreement with Stronghold Digital Mining, Inc. (NASDAQ: SDIG), valued at approximately US$125 million plus US$50 million in assumed debt. This merger aims to enhance and rebalance Bitfarms' energy portfolio.
Strategic Benefits of the Acquisition
This acquisition will enable Bitfarms to expand its energy portfolio to approximately 950 MW by the end of 2025, with expectations for significant future expansion potential. The merger will also add an additional 4.0 EH/s to Bitfarms' hashrate, with capabilities to potentially increase to over 10 EH/s through fleet upgrades.
Power Generation and Import Capacity
As part of the merger, Bitfarms gains access to 165 MW of generated power capacity and 142 MW of PJM import capacity. There is potential for future expansion to increase the PJM import capacity to 790 MW, solidifying a position in the wholesale electricity market.
Environmental Commitment
The merger not only focuses on operational efficiency but also emphasizes environmental sustainability. Stronghold is recognized for its environmental remediation and reclamation efforts, having significantly reduced the environmental impact of historical mining activities.
Future Prospects
With the merger, Bitfarms expects to enhance its energy trading capabilities while significantly increasing the potential for high-performance computing (HPC) and artificial intelligence (AI) applications integrated with Bitcoin mining operations.
Leadership Perspectives
Ben Gagnon, CEO of Bitfarms, expresses pride in this transformative acquisition, emphasizing the strategic shift towards a diversified energy portfolio. Arnold Lee, Director of Sustainability, highlights Bitfarms' commitment to environmental leadership through this partnership.
Transaction Approval and Details
The transaction has received approval from the boards of both companies and is expected to close in early 2025, pending regulatory and shareholder approvals. Stronghold shareholders will receive 2.52 Bitfarms shares for each Stronghold share owned.
Frequently Asked Questions
What is the main objective of the Bitfarms and Stronghold merger?
The merger aims to enhance Bitfarms' energy capacity and operational efficiency while focusing on environmental sustainability through Stronghold's reclamation efforts.
How will the acquisition impact Bitfarms' hashrate?
The acquisition will add 4.0 EH/s to Bitfarms' hashrate initially, with potential growth to over 10 EH/s through fleet upgrades.
What are the expected benefits of the merger for shareholders?
Shareholders can expect significant synergies, increased energy capacity, and enhanced operational capabilities post-merger.
When is the expected closing date for the transaction?
The transaction is expected to close in the first quarter of 2025, pending necessary approvals.
How can investors learn more about Bitfarms?
Investors can contact Bitfarms' investor relations for more information or visit their official website for updates on developments and events.
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