Bitfarms Inks $125 Million Deal to Acquire Stronghold Digital

• Bitfarms has acquired Stronghold Digital for $125 million.
• The deal will add about 950 MW to Bitfarms’ operations by the end of 2025.

Bitcoin mining firm Bitfarms (BITF) has agreed to buy competitor Stronghold Digital for $125 million. The amount includes an assumed debt of $50 million. This move will help Bitfarms diversify its revenues beyond Bitcoin mining, which after April’s halving event, has caused miners to witness reduced rewards from their activities.

“After three years of ongoing discussions, I am proud to announce this transformative acquisition, which is a decisive step in securing a strong future for Bitfarms,” said Bitfarms CEO Ben Gagnon in a press release.

Bitfarms Is Seeking to Diversify Revenue Sources

This deal will bring about 950 Megawatts (MW) to Bitfarms by the end of 2025, ensuring it can generate revenues through other sources, including high-performance computing (HPC) and providing processing power to AI applications. Bitcoin miners are racing to diversify income sources, increasing their capabilities and adding more energy-efficient rigs.

Gagnon added, “By vertically integrating with power generation, expanding our energy trading capabilities and securing two high potential sites for HPC/AI with significant multi-year expansion potential, we are executing our strategy to diversify beyond Bitcoin mining to create greater long-term shareholder value.”

Stronghold Digital’s CEO, partner, and president also chimed in about the deal, stating, “We have been in conversation with Bitfarms for a long time. Having received and reviewed numerous bids in our Strategic Alternatives Review process, we believe that we found the ideal partner.”

This transaction is set to conclude in the first quarter of 2025. Stronghold shareholders will benefit from the deal as they will receive 2.25 shares of Bitfarms for every share of Stronghold they hold. That will represent a consideration of $6.02 per share, marking a 71% premium to the 90-day weighted average price of Stronghold on Nasdaq as of August 16 this year.

As this deal gets inked, Bitfarms itself has undergone takeover attempts by rival Riot Platforms. Riot disregarded its plans to buy Bitfarms, instead wanting to build its stake in the company and stage a takeover. It currently owns about 19% of Bitfarms.