Bitfarms, a leading Bitcoin mining company, has completed the acquisition of Stronghold Digital Mining. This deal strengthens Bitfarms’ energy capacity and mining operations, positioning it as a leader in the industry. With this move, Bitfarms also enhances its efforts to integrate artificial intelligence (AI) computing alongside Bitcoin mining.
The acquisition expands Bitfarms’ presence in the United States, particularly in the PJM market. Ben Gagnon, CEO of Bitfarms, shared that the combined energy portfolio in Pennsylvania spans over 1 gigawatt (GW). The acquisition grants Bitfarms access to strategically located land, power, and fiber, which are ideal for both high-performance computing (HPC) and Bitcoin mining. This merger significantly boosts Bitfarms’ operational footprint and market presence.
One of the major benefits of the Stronghold acquisition is the increase in energy capacity. Bitfarms now manages 623 megawatts (MW) of energy, including 165 MW of active generation capacity. Furthermore, the company has gained an additional 142 MW of import capacity. This enhanced energy infrastructure will support both Bitcoin mining and AI-driven computing operations.
Bitfarms’ growth strategy is clear—expand in North America. The acquisition aligns with this goal, as Bitfarms now holds 80% of its energy portfolio in North America, with the remaining 20% spread globally. This North American focus is central to the company’s broader expansion plans.
Additionally, the company has identified new opportunities for AI and HPC developments. Bitfarms plans to develop two new power campuses totaling nearly 1 GW, prioritizing Stronghold’s sites for potential AI-related conversions. Strategic partners like WWT and ASG are involved in these efforts.
Through the acquisition, Bitfarms also increases its self-mining capabilities. The company now manages nearly 1 Exahash Under Management (EHuM) through hosting agreements with Canaan, which further strengthens its mining operations. The merger transitions Stronghold’s hosting agreements into Bitfarms’ self-mining operations.
The merger was structured as a stock-for-stock deal. Stronghold shareholders received 2.52 Bitfarms shares for each Stronghold share they owned. In total, about 59.7 million Bitfarms shares and 10.6 million warrants were issued. Additionally, Bitfarms paid $44.5 million to settle Stronghold’s outstanding loans, marking the completion of the deal. As a result, Stronghold’s stock ceased trading on Nasdaq.
In conclusion, Bitfarms’ acquisition of Stronghold Digital Mining enhances its energy and mining capacity. This strategic move positions Bitfarms for significant growth in both Bitcoin mining and AI computing, solidifying its presence in North America.
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