Bitfarms to Acquire Stronghold Digital for $175 Million in Stock and Debt Assumption

Bitfarms to Acquire Stronghold Digital in Strategic Move

In a significant development within the cryptocurrency mining sector, Bitcoin miner Bitfarms (BITF) has announced its decision to acquire rival Stronghold Digital Mining (SDIG) for a substantial $175 million in stock, alongside the assumption of debt. This deal is poised to enhance Bitfarms’ market position and operational capabilities.

The acquisition offer includes a compelling exchange ratio of 2.52 Bitfarms shares for every one share of Stronghold, representing a notable premium of 71% compared to Stronghold’s 90-day volume-weighted average price on Nasdaq as of August 16, as highlighted in Bitfarms’ official statement.

Interestingly, Bitfarms is currently navigating its own corporate dynamics, as it is fending off a previous approach from Riot Platforms (RIOT). Riot had initially sought to acquire Bitfarms back in June but later shifted its strategy, opting to focus on a board overhaul and increasing its stake in the Toronto-based company. As of now, Riot holds nearly 19% of Bitfarms’ shares, indicating a keen interest in the company’s future.

On the other hand, Stronghold Digital Mining had revealed its exploration of strategic alternatives as early as May, which could potentially include the sale of the company. This acquisition by Bitfarms may align with Stronghold’s efforts to find suitable avenues for growth and collaboration in the competitive landscape of cryptocurrency mining.