Bitcoin mining company Bitfarms has finalized its acquisition of Stronghold Digital Mining, gaining access to a 1.1-gigawatt energy pipeline across three sites in Pennsylvania.
The deal significantly enhances Bitfarms’ presence in the PJM market, a key energy region in the United States, according to a Monday press release.
Under the agreement, Stronghold shareholders received 2.52 Bitfarms shares for each Stronghold share they held.
Stronghold Digital Delisted from NASDAQ Following Bitfarms Acquisition
With the transaction complete, Stronghold has ceased to exist as an independent public entity and has been delisted from the NASDAQ exchange.
It is now a wholly-owned subsidiary of Bitfarms, with the latter taking full control of Stronghold’s assets and operations.
The acquisition boosts Bitfarms’ total energy portfolio to 623 megawatts under management, adding 165 MW of active power generation and 142 MW of immediately available import capacity.
The move also rebalances Bitfarms’ energy mix, shifting its 2025 projections to 80% North American-based operations and 20% international.
Bitfarms CEO Ben Gagnon emphasized that the deal strengthens the company’s foothold in the U.S., particularly within the PJM energy grid.
He highlighted the strategic importance of integrating Stronghold’s infrastructure to support both Bitcoin mining and high-performance computing (HPC) for artificial intelligence (AI).
“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 our U.S. strategy and developing an HPC/AI business geared for scale,” Gagnon stated.
Bitfarms initially agreed to acquire Stronghold Digital Mining in a stock-based transaction valued at approximately $125 million, including around $50 million in assumed debt, according to Bloomberg.
The acquisition comes as Bitfarms fends off an unsolicited $950 million takeover bid from Riot Platforms, which had attempted to acquire the company earlier this year.
US Dominates Bitcoin Mining with Over 40% of Global Hashrate
At the close of 2024, the United States solidified its position as a leader in Bitcoin mining, accounting for over 40% of the global hashrate — the total computing power securing the Bitcoin network.
U.S.-based mining pools Foundry USA and MARA Pool played a significant role, collectively mining more than 38.5% of all Bitcoin blocks.
Foundry USA increased its hashrate from 157 exahashes per second (EH/s) at the beginning of the year to approximately 280 EH/s by December.
The growth cemented Foundry USA’s position as the largest mining pool globally, with control over 36.5% of the Bitcoin network’s total hashrate.
As reported, Jack Dorsey’s Block has also announced plans to ramp up investments in its Bitcoin mining initiative and self-custody Bitcoin wallet.
At the time, the company said it would reallocate resources from its canceled “Web5” project, TBD, and cut investments in the music-streaming service, Tidal, to support this move.
Last month, Core Scientific also revealed plans for a $1.2 billion data center expansion in partnership with artificial intelligence startup CoreWeave.
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