Bitfarms stock dips despite $110m acquisition
Canadian Bitcoin miner Bitfarms has finalized the acquisition of Stronghold Digital Mining, marking the largest-ever merger between two publicly listed Bitcoin mining companies.
According to a press release published on March 17, Bitfarms has completed the all-stock acquisition of Stronghold Digital Mining. The merger was approved on Feb. 28, with 99.6% of votes cast voting in favor, representing about 54.5% of Stronghold’s outstanding shares.
Bitfarms acquired Stronghold through a stock-for-stock merger, with Stronghold shareholders receiving 2.52 Bitfarms shares for each Stronghold share they owned. Nearly 60 million Bitfarms shares and over 10.5 million warrants were issued as part of the deal. Stronghold’s stock was removed from Nasdaq and stopped trading.
Bitfarms’ stock opened higher Monday morning but lost any buying momentum and was trading lower by around 1% during the early afternoon session.
Details of the acquisition
With Stronghold now fully integrated into Bitfarms, the mining giant has expanded its energy capacity to 623 megawatts — including existing power generation and grid import capacity in Pennsylvania.
Additionally, Bitfarms now manages nearly 1 more Exahash of computing power, bringing its total to 18 Exahash. A previous agreement where Stronghold hosted miners for others is now being used for Bitfarms’ direct mining operations.
Bitfarms also sees potential to convert two Stronghold power sites into large-scale AI and computing hubs, with plans to partner with industry players to develop these facilities.
“With Stronghold’s portfolio of power assets, combined with our operational expertise and balance sheet strength, we are well positioned to create long-term value for our shareholders by executing on our US strategy and developing an HPC/AI business geared for scale, ” said Ben Gagnon, Chief Executive Officer of Bitfarms.
In addition to increasing its power assets, the acquisition has boosted Bitfarms’ share of the North American energy market from 6% to 80%.
