Bitfarms сompletes Stronghold merger in $110M deal
Bitfarms operates 15 Bitcoin mining data centers
Bitcoin mining and vertically integrated data center company Bitfarms has announced the successful completion of its acquisition of Stronghold Digital Mining, marking the largest merger between two publicly traded Bitcoin mining companies.
According to Bitfarms’ press release, this acquisition increases its energy portfolio to 623 megawatts under management (MWuM), adding 165 MW of active generating capacity and 142 MW of immediately available imported capacity.
With existing hosting agreements with Canaan, featuring a 50% profit-sharing model, this move adds nearly 1 Exahash under management (EHuM) to Bitfarms, bringing its total to 18 EHuM.
The acquisition significantly boosts Bitfarms' share in the North American energy market, increasing its presence in the PJM Interconnection (Pennsylvania-New Jersey-Maryland) power grid from 6% to 80%.
“The completion of this strategic acquisition further expands our U.S. presence and establishes us as an industry leader in the PJM market. With Stronghold’s energy asset portfolio, combined with our operational expertise and balance sheet strength, we are well-positioned to create long-term value for our shareholders,” said Ben Gagnon, CEO of Bitfarms.
Deal details
Bitfarms acquired Stronghold through a stock-for-stock transaction, where Stronghold shareholders received 2.52 Bitfarms shares for each Stronghold share they held, making Stronghold a wholly owned subsidiary of Bitfarms.
Upon completion of the merger, Bitfarms issued approximately 59,678,164 common shares and 10,574,848 warrants. Additionally, around $44.5 million was paid to settle Stronghold’s outstanding loans, bringing the total acquisition value to $110 million.
As a result of the acquisition, Stronghold Digital Mining (SDIG) ceased trading on Nasdaq before the market opened on March 17.
Bitfarms’ global expansion
Currently, Bitfarms operates 15 Bitcoin mining data centers across four countries: the U.S., Canada, Paraguay, and Argentina. The company primarily relies on renewable hydroelectric power and long-term energy contracts, aiming to leverage sustainable and underutilized energy infrastructure.
Previously, Riot Platforms, the world’s second-largest Bitcoin mining company, attempted a hostile takeover of Bitfarms, but ultimately failed and decided to retain a 20% stake in the company.
As we wrote, prominent miners such as Hut 8, Mara, and Bitfarms saw lower outputs in January 2025 compared to December 2024, while Riot Platforms bucked the trend with a 2.1% production increase.
