Bitfarms Solidifies U.S. Presence with Stronghold Digital Mining Acquisition
Bitfarms Ltd. (NASDAQ/TSX: BITF), a prominent player in the Bitcoin mining sector, has successfully completed its acquisition of Stronghold Digital Mining, Inc., marking a significant expansion of its operations in the United States. This strategic move, announced on March 17, 2025, aims to enhance Bitfarms' capacity for High Performance Computing (HPC) and Artificial Intelligence (AI) applications, according to a press release from the company.
Strategic Growth and Expansion
The acquisition of Stronghold Digital Mining significantly bolsters Bitfarms' energy portfolio, adding 165 megawatts (MW) of active generating capacity and 142 MW of immediately available import capacity. This expansion secures a substantial growth pipeline in Pennsylvania, with a total of 1.1 gigawatts (GW) strategically located for HPC/AI and Bitcoin mining. The integration of Stronghold's assets is expected to position Bitfarms as the leading Bitcoin miner in the Pennsylvania-New Jersey-Maryland (PJM) market.
Enhancing U.S. Operations
With this acquisition, Bitfarms aims to rebalance its energy portfolio to 80% North American and 20% international by the end of 2025. This move aligns with the company's strategy to capitalize on the growing demand for HPC/AI infrastructure. Strategic partners such as WWT and ASG are prioritizing the conversion of Stronghold sites for potential HPC/AI applications, further diversifying Bitfarms' service offerings.
Increased Mining Capacity
The acquisition adds nearly 1 exahash under management (EHuM) through existing hosting agreements, bringing Bitfarms' total to 18 EHuM. Previously announced hosting agreements with Stronghold are now under Bitfarms' self-mining operations, enhancing the company's operational capacity and efficiency in Bitcoin mining.
Transaction Details
The acquisition was executed as a stock-for-stock merger, with Stronghold shareholders receiving 2.52 shares of Bitfarms for each share of Stronghold they owned. This transaction resulted in the issuance of approximately 59.7 million Bitfarms common shares and 10.6 million warrants. Additionally, Bitfarms paid around $44.5 million to retire outstanding Stronghold loans. Following the merger, Stronghold's common stock ceased trading on Nasdaq.
Bitfarms, established in 2017, operates 15 Bitcoin data centers across four countries, including the United States, Canada, Paraguay, and Argentina. The company is committed to sustainable operations, utilizing environmentally friendly hydro-electric power and long-term contracts to power its facilities. Bitfarms' acquisition of Stronghold Digital Mining is set to enhance its position in the North American market, providing a robust platform for future growth and innovation in the Bitcoin mining and HPC/AI sectors.
For more detailed information, visit the official press release on GlobeNewswire.