Bitcoin mining firm Bitfarms completed the acquisition of Stronghold Digital Mining. The deal is expected to increase the company's energy capacity and positions.

According to the announcement, the acquisition also strengthens Bitfarms' efforts to integrate artificial intelligence (AI) computing alongside Bitcoin mining.

"The completion of this strategic acquisition further expands our U.S. footprint and makes us the industry leader in the PJM market. Our combined PJM pipeline, spanning three sites in Pennsylvania, totals over 1 GW with strategically located land, power, and fiber that is well-suited for both HPC/AI and Bitcoin mining," commented Ben Gagnon, the Chief Executive Officer of Bitfarms.

Boosting Energy Capacity and Mining Operations

With the Stronghold acquisition, Bitfarms' energy portfolio grows to 623 megawatts under management (MWuM). This includes 165 MW of active generation capacity and an additional 142 MW of immediately available import capacity.

The deal also secures a 1.1-gigawatt growth pipeline in Pennsylvania, giving Bitfarms significant power infrastructure to support both Bitcoin mining and AI-driven computing.

According to the company, Bitfarms' acquisition aligns with its broader goal of expanding in North America. The company now holds 80% of its energy portfolio in North America, with the remaining 20% spread internationally.

Additionally, Bitfarms has identified opportunities to develop two power campuses totaling nearly one gigawatt for AI and high-performance computing (HPC). Strategic partners, including WWT and ASG, are prioritizing Stronghold's sites for potential AI-related conversions.

Strengthening Mining Capabilities

Bitfarms adds nearly 1 Exahash Under Management (EHuM) through existing hosting agreements with Canaan, featuring a 50% profit split. This brings Bitfarms' total EHuM to 18, further enhancing its self-mining capabilities. The previously announced Stronghold hosting agreements have now transitioned into Bitfarms' self-mining operations, streamlining efficiency.

The acquisition was structured as a stock-for-stock merger, with Stronghold shareholders receiving 2.52 shares of Bitfarms for each share they owned. In total, approximately 59.7 million Bitfarms common shares and 10.6 million warrants were issued as part of the transaction.

Additionally, Bitfarms reportedly paid approximately $44.5 million at closing to settle Stronghold's outstanding loans. As a result of the merger, Stronghold's stock ceased trading on Nasdaq before the market opened today.

Bitfarms' acquisition of Stronghold Digital Mining marks a turning point in its U.S. strategy. The expanded energy portfolio and increased mining capacity provide a strong foundation for growth, particularly in AI and HPC applications.

As the company integrates Stronghold's assets, it aims to leverage its operational expertise and financial stability to drive long-term value for investors.

Source: Finance Magnates