Bitfarms, a prominent Canadian Bitcoin miner, has successfully completed the acquisition of Stronghold Digital Mining, marking a significant milestone as the largest merger in the history of publicly listed Bitcoin mining companies.
As confirmed in a recent press release, the all-stock acquisition was finalized following an overwhelming approval on February 28, where 99.6% of the votes cast supported the merger, accounting for approximately 54.5% of Stronghold’s outstanding shares.
Under the terms of the stock-for-stock deal, Stronghold shareholders will receive 2.52 Bitfarms shares for each Stronghold share. The transaction involved the issuance of nearly 60 million Bitfarms shares and over 10.5 million warrants. Following the acquisition, Stronghold’s stock has been delisted from trading.
Although Bitfarms’ stock initially opened higher on Monday, it experienced a dip, trading down approximately 1% in the early afternoon session.
Acquisition Overview
With the consolidation of Stronghold into Bitfarms, the mining powerhouse has significantly increased its energy capacity to 623 megawatts, encompassing both current power generation and grid import capacity in Pennsylvania.
Additionally, Bitfarms’ computational power has expanded by nearly 1 Exahash, elevating its cumulative power to a remarkable 18 Exahash. The previous agreement involving Stronghold hosting miners for others has been repurposed for Bitfarms’ own mining operations.
Bitfarms also envisions transforming two of Stronghold’s power sites into large-scale AI and computing hubs, aiming to collaborate with industry partners for the development of these innovative facilities.
“With Stronghold’s extensive portfolio of power assets, our operational expertise, and financial strength, we are strategically positioned to create long-term value for our stakeholders while advancing our U.S. strategy and building a scalable HPC/AI enterprise,” said the CEO of Bitfarms.
This acquisition has significantly enhanced Bitfarms’ share of the North American energy market, soaring from 6% to an impressive 80%.
