Bitfarms acquires Stronghold for 1.1 GW growth

Bitfarms Ltd. has successfully completed its acquisition of Stronghold Digital Mining, Inc., significantly expanding its U.S. operations and energy capabilities.

This strategic move positions Bitfarms as a Bitcoin (CRYPTO:BTC) miner in the PJM market and bolsters its high-performance computing (HPC) and artificial intelligence (AI) initiatives.

The acquisition increases Bitfarms' energy portfolio to 623 megawatts under management, adding 165 megawatts of active generating capacity and 142 megawatts of immediately available import capacity.

It also secures a 1.1-gigawatt growth pipeline in Pennsylvania, which includes current and future power generation and grid import capacities.

This expansion is expected to reduce electricity costs through PJM demand response programs.

By the end of 2025, Bitfarms plans to rebalance its energy portfolio to 80% North American and 20% international.

The company aims to develop two power campuses totaling nearly one gigawatt for HPC/AI, with strategic partners WWT and ASG prioritising Stronghold sites for potential conversion.

The deal adds nearly one exahash per second (1 EH/s) under management through existing Canaan hosting agreements, bringing Bitfarms' total to 18 EH/s.

Previously announced Stronghold hosting agreements are now part of Bitfarms' self-mining operations.

In a stock-for-stock merger, Stronghold shareholders received 2.52 shares of Bitfarms for each share of Stronghold they owned.

Approximately 59.7 million Bitfarms common shares and 10.6 million warrants were issued, and $44.5 million was paid to retire outstanding Stronghold loans.

"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, 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 U.S. strategy and developing an HPC/AI business geared for scale," noted Ben Gagnon, CEO of Bitfarms.

This acquisition marks a significant step in Bitfarms' U.S. strategy and its development of an HPC/AI business.

Founded in 2017, Bitfarms is a global Bitcoin and vertically integrated data center company committed to using sustainable energy infrastructure.

The merger received overwhelming approval from Stronghold stockholders, with approximately 99.6% of votes cast in favor of the deal.

"We are thrilled by the strong endorsement from our stockholders, who recognise the significant value and potential of this merger," Gregory Beard noted, CEO of Stronghold.