Bitfarms Acquires Stronghold, Strengthens Position in Bitcoin Mining

TORONTO, March 17, 2025 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading Bitcoin mining and data center company, announced the completion of its acquisition of Stronghold Digital Mining, Inc. in a stock-for-stock merger valued at over $110 million. This deal is expected to significantly boost Bitfarms’ position in the U.S. energy market, particularly within the PJM region.

Bitfarms’ Chief Executive Officer Ben Gagnon expressed enthusiasm about the acquisition, stating, “The completion of this strategic acquisition further expands our U.S. footprint and makes us the industry leader in the PJM market. With Stronghold’s portfolio of power assets and our operational expertise, we are well positioned to deliver long-term value for our shareholders while developing an HPC/AI business geared for scale.”

The merger allows Stronghold shareholders to receive 2.52 shares of Bitfarms for each Stronghold share they hold, resulting in the issuance of approximately 59,678,164 common shares and 10,574,848 warrants. An additional payment of about $44.5 million was made at closing to retire Stronghold’s outstanding loans, while its stock ceased trading on Nasdaq prior to the announcement.

This acquisition expands Bitfarms’ energy capacity to 623 megawatts under management, incorporating 165 MW of active generating capacity and 142 MW of incoming capacity, alongside a growth pipeline of 1.1 gigawatts strategically located in Pennsylvania. By year-end 2025, the company’s energy portfolio will consist of 80% North American and 20% international operations.

Gagnon noted that the combined operational capabilities with Stronghold’s assets provide substantial scale advantages in the rapidly evolving cryptocurrency sector. “The combined PJM pipeline offers us unique opportunities in HPC/AI and Bitcoin mining. We’re thrilled to welcome the talented Stronghold team to ensure the success of our mutual goals,” he added.

The acquisition not only strengthens Bitfarms’ market position, but it also provides a competitive edge against rivals, particularly Riot Platforms, which previously attempted a hostile takeover of Bitfarms. With the new assets and infrastructure, Bitfarms aims to establish long-term growth and profitability as regulatory frameworks for cryptocurrency evolve.

Analysts view this acquisition favorably, as it positions Bitfarms to capitalize on emerging trends in high-performance computing and AI, potentially increasing stability in revenue streams that are often vulnerable to market fluctuations.

Overall, this strategic move illustrates Bitfarms’ commitment to expanding its footprint in the burgeoning cryptocurrency sector while enhancing its operational and financial stability.