Bitcoin

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April

Bitcoin mining company Bitfarms Ltd. has announced its acquisition of Stronghold Digital Mining, valued at approximately $125 million. The transaction includes assumed debt of about $50 million.
Ben Gagnon, CEO of Bitfarms, stated that <a href="https://investor.bitfarms.com/news-events/press-releases/detail/262/bitfarms-to-acquire-stronghold-digital-mining" rel="noopener noreferrer nofollow" target="_blank">the acquisition</a> will add power capacity by up to 307 megawatts, positioning the mining firm to expand its energy portfolio to over 950 megawatts by the end of 2025.
<h3 id="stronghold-shareholders-to-benefit-from-premium-valuation-and-stock-swap">Stronghold shareholders to benefit from premium valuation and stock swap</h3>
As part of the deal, Stronghold shareholders will receive 2.52 Bitfarms shares for each share held, the companies said in a statement Wednesday. That’s a premium of around 70 percent of Stronghold’s 90-day volume-weighted average price on Nasdaq as of Aug. 16.&nbsp;
After the news on the acquisition came out <a href="https://www.nasdaq.com/market-activity/stocks/sdig" rel="noopener noreferrer nofollow" target="_blank">Stronghold’s shares</a> surged approximately 55% in pre-market trading on Nasdaq, reaching $4.55. This reaction underscores investor optimism about the acquisition and its potential impact on shareholder value.
Bitfarms’ acquisition comes at a time when Bitcoin mining firms face challenges due to reduced mining rewards following the Bitcoin halving. Increased debt burdens and management concerns have also been prominent issues within the industry.
<h3 id="stronghold-revenues-have-grown-by-27-in-the-first-quarter-of-2024">Stronghold revenues have grown by 27% in the first quarter of 2024</h3>
Stronghold Digital Mining, which had been exploring sale options for some time, had recently filed a registration statement in April to sell up to <a href="https://ir.strongholddigitalmining.com/node/7916/html" rel="noopener noreferrer nofollow" target="_blank">$250 million</a> in securities. This move was intended to address its debt through share dilution.
For the first quarter of 2024, Stronghold reported revenues of $27.5 million, marking a 27% increase from the previous quarter and a 59% rise year-over-year. The revenue breakdown included $26.7 million from cryptocurrency operations, $700,000 from energy sales, and $100,000 from other activities.

Bitfarms expands power capacity with $125M acquisition of Stronghold Digital Mining

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