- Bitfarms completes $110M acquisition of Stronghold, expanding U.S. market share.
- Bitfarms now holds 80% of North American energy market.
- Stronghold ceases to exist as a separate publicly traded company.
Bitfarms has announced the completion of its $110 million acquisition of Stronghold Digital Mining, marking a significant shift in the North American Bitcoin mining landscape.
The acquisition not only positions Bitfarms as an industry leader but also significantly broadens its U.S. market footprint, enhancing its market influence.
Bitfarms’ $110M Acquisition Boosts U.S. Market Influence
Bitfarms announced the acquisition of Stronghold Digital Mining for over $110 million, expanding its operations significantly. CEO Ben Gagnon emphasized the strategic importance of this move, highlighting its role in Bitfarms’ long-term U.S. strategy. The acquisition involved the issuance of 59.7 million shares and 10.6 million warrants, with Bitfarms also taking on $44.5 million of Stronghold’s outstanding 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 US strategy and developing an HPC/AI business geared for scale.” — Ben Gagnon, CEO, Bitfarms
With this acquisition, Bitfarms increases its managed energy portfolio to 623 Megawatts. The company now controls an 80% share of the North American energy market, with a significant footprint in the U.S. PJM grid. Stronghold Digital Mining will no longer exist as an independent entity, becoming a wholly-owned subsidiary of Bitfarms.
Market reactions have been notable, particularly in light of previous takeover attempts by Riot Platforms. Bitfarms’ successful acquisition is seen as a key power play in the competitive Bitcoin mining sector. Ben Gagnon’s statement underscored the long-term strategic advantages, strengthening Bitfarms’ position in the industry.
Largest Public Bitcoin Miner Merger Spurs Industry Speculation
Market analysts point to potential regulatory scrutiny as Bitfarms increases its market share. The acquisition marks the largest merger between public Bitcoin miners, setting a precedent for consolidation trends. This move strengthens Bitfarms’ position, suggesting potential growth opportunities and industry shifts.
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