Bitfarms Expands U.S. Reach with Stronghold Digital Mining Acquisition

TORONTO, Canada — Bitfarms has finalized its acquisition of Stronghold Digital Mining, which the company announced on Monday. This strategic move aims to bolster Bitfarms’ focus on artificial intelligence by utilizing Stronghold’s site to enhance its data warehouses and provide space for AI firms.

Bitfarms, a Canadian bitcoin mining operation, stated that this acquisition is the largest public-to-public deal in the industry’s history. The company expressed pride in this accomplishment, noting that it significantly extends their presence in the U.S. and strengthens its competitive edge. “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,” Bitfarms declared in a press release.

The acquisition was valued at $175 million, comprising $125 million in equity value, as stipulated in the agreement reached last year. Industry analysts had previously indicated that this acquisition would enhance Bitfarms’ valuation and potentially hinder rival Riot Blockchain’s attempts to acquire the company since early 2023.

In their latest announcement, Bitfarms highlighted a new growth pipeline securing 1.1 GW in Pennsylvania. This includes existing power generation, grid import capacity, and future import capacity, reinforcing the company’s operational capabilities. Bitfarms currently operates 15 bitcoin data centers across Canada, the U.S., Paraguay, and Argentina.

Stronghold Digital Mining, known for its environmentally friendly approach, has been pivotal in harnessing waste coal to produce energy for bitcoin mining. This emphasis on sustainable practices aligns with ongoing trends in the mining industry, where energy efficiency and environmental sustainability continue to gain traction.

As the cryptocurrency ecosystem evolves, acquisitions like this one signal a shift towards larger, more integrated operations that can leverage their assets to meet increasing demands in both cryptocurrency mining and artificial intelligence sectors.