{"id":90599,"date":"2024-08-21T09:48:17","date_gmt":"2024-08-21T13:48:17","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=90599"},"modified":"2024-09-13T03:01:49","modified_gmt":"2024-09-13T07:01:49","slug":"bitfarms-acquires-stronghold-digital-mining","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bitfarms-acquires-stronghold-digital-mining\/","title":{"rendered":"Bitfarms Acquires Stronghold Digital Mining in Recent Deal"},"content":{"rendered":"\n

Bitfarms Mining Corporation has announced the acquisition of Stronghold Digital Mining<\/a> for an estimated $125 million in equity value. <\/p>\n\n\n\n

\"Bitfarms
Bitfarms Acquires Stronghold Digital Mining in Recent Deal<\/figcaption><\/figure>\n\n\n\n

The transaction considers an assumed debt of approximately $50 million, and it is anticipated to increase Bitfarms' energy portfolio to over 950 megawatts by the end of 2025, which may add up to 307 megawatts of power capacity.<\/p>\n\n\n\n

Bitfarms CEO Ben Gagnon\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> expressed his satisfaction with the acquisition, stating, “I am proud to announce this transformative acquisition, which is a decisive step in securing a strong future for Bitfarms after three years of ongoing discussions.”<\/p>\n\n\n\n

\n

We are pleased to announce that #Bitfarms<\/use><\/svg><\/span><\/a> has entered into a definitive agreement to acquire @Stronghold_DM<\/use><\/svg><\/span><\/a>.

Stronghold brings to Bitfarms vertically integrated crypto asset mining operations and access to the strategically desirable PJM grid, the largest wholesale electricity\u2026 pic.twitter.com\/HemcStdETS<\/use><\/svg><\/span><\/a><\/p>— Bitfarms (@Bitfarms_io) August 21, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

In pre-market trading on Nasdaq, Stronghold's shares increased by approximately 55% to $4.55.<\/p>\n\n\n\n

The Bitcoin halving has decreased mining rewards, putting pressure on mining firms. Additionally, their debt burden and previous inadequate administration have been sources of anxiety.<\/p>\n\n\n\n

Shareholders will receive 2.52 shares for each share they possess<\/h2>\n\n\n\n

Stronghold shareholders will receive 2.52 shares of Bitfarms for each share of Stronghold they own, resulting in a consideration per share of $6.02. That is a 71% premium to the Stronghold 90-day volume-weighted average price on Nasdaq as of August 16.<\/p>\n\n\n\n

When discussing the acquisition in greater detail, Gagnon stated:<\/p>\n\n\n\n

\n

\u201cWith this transaction, we expect to expand and rebalance our energy portfolio to 950 MW with nearly 50% in the US by the end of 2025 and have visibility on multi-year expansion capacity up to 1.6 GW with approximately 66% in the US, up from approximately 6% today.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

The statement predicts that Stronghold shareholders will own just under 10% of the combined company, based on each company's current issued and outstanding shares.<\/p>\n\n\n\n

Enhancing shareholder value through acquisition<\/h2>\n\n\n\n

Gagnon stated that Bitfarms intends to diversify beyond Bitcoin mining <\/a>to generate greater long-term shareholder value by vertically integrating with power generation, expanding energy trading capabilities, and securing two high-potential sites for high-performance computing and artificial intelligence. These sites have significant multi-year expansion potential.<\/p>\n\n\n\n

Stronghold Digital Mining has been contemplating selling the company for some time. In April, Stronghold submitted a registration statement to sell up to $250 million in securities to reduce its debt through share dilution.<\/p>\n\n\n\n

The revenues of $27.5 million in the first quarter of 2024 were a 27% increase from the previous quarter and a 59% increase year over year for Stronghold. The revenue breakdown comprised $26.7 million from cryptocurrency<\/a> operations, $700,000 from the sale of energy, and an additional $100,000 from “other activities.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitfarms Mining Corporation has announced the acquisition of Stronghold Digital Mining for an estimated $125 million in equity value. The transaction considers an assumed debt of approximately $50 million, and it is anticipated to increase Bitfarms’ energy portfolio to over 950 megawatts by the end of 2025, which may add up to 307 megawatts of […]<\/p>\n","protected":false},"author":12,"featured_media":90605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83,21],"tags":[754,708,750],"class_list":["post-90599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","category-news","tag-bitcoin-mining","tag-bitfarms","tag-stronghold-digital-mining"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/08\/Bitfarms.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=90599"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/90605"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=90599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=90599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=90599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}