Iris Coleman
Aug 21, 2024 17:42
Bitfarms will purchase Stronghold Digital Mining in a stock-for-stock merger valued at $125 million, increasing its vitality portfolio considerably.
Bitfarms Ltd. (Nasdaq/TSX: BITF), a worldwide Bitcoin (BTC) information middle firm, has introduced its acquisition of Stronghold Digital Mining, Inc. (Nasdaq: SDIG) in a stock-for-stock merger valued at roughly $125 million, in accordance with globenewswire.com. The transaction additionally contains the belief of $50 million in debt.
Strategic Growth
The acquisition aligns with Bitfarms’ strategic plan to increase and rebalance its vitality portfolio, aiming to attain roughly 50% of its vitality capability in america by the tip of 2025. This transfer is anticipated to extend Bitfarms’ vitality portfolio to over 950 megawatts (MW) by year-end 2025, with potential growth capability as much as 1.6 gigawatts (GW) in subsequent years.
Stronghold’s Property and Capabilities
Stronghold is a vertically built-in crypto asset mining firm targeted on Bitcoin mining and environmental remediation. As of June 30, 2024, the corporate has a hashrate of 4.0 exahashes per second (EH/s) and 165 MW of nameplate generated energy capability. Stronghold’s property embrace 142 MW of present Pennsylvania-New Jersey-Maryland Interconnection (PJM) import capability, with the potential to convey its hashrate to roughly 10 EH/s in 2025 via fleet upgrades.
Stronghold owns over 750 acres of land and two service provider energy vegetation, the Scrubgrass and Panther Creek Amenities in Pennsylvania. These vegetation are acknowledged as Tier 2 Different Power Sources for his or her environmental advantages, together with the reclamation of poisonous waste and conversion into energy.
Environmental and Monetary Advantages
Bitfarms’ acquisition of Stronghold is anticipated to increase its environmental management. Stronghold has reclaimed 1000’s of acres of poisonous waste and has the potential to seize over 60,000 tons of carbon dioxide yearly via its Carbon Seize Initiatives. Moreover, the transaction is anticipated to attain $10 million in annual run-rate price synergies.
Management Statements
Ben Gagnon, CEO of Bitfarms, commented, “This transformative acquisition is a decisive step in securing a powerful future for Bitfarms. We count on to increase our vitality portfolio to 950 MW with practically 50% within the U.S. by the tip of 2025.”
Gregory Beard, CEO and Chairman of Stronghold, added, “Bitfarms has the imaginative and prescient and monetary fortitude to unlock the worth of Stronghold’s property. This mix is a novel alternative to maximise worth for the shareholders of each corporations.”
Transaction Particulars
The Boards of Administrators of each corporations have unanimously permitted the transaction, which is anticipated to shut within the first quarter of 2025, topic to regulatory approvals and different customary closing circumstances. Stronghold shareholders will obtain 2.52 shares of Bitfarms for every share of Stronghold they personal, representing a 71% premium to Stronghold’s 90-day volume-weighted common worth on Nasdaq as of August 16, 2024.
Convention Name and Advisors
Bitfarms and Stronghold will conduct a convention name with buyers to debate the transaction on August 21, 2024, at 8:30 AM ET. Moelis & Firm LLC is serving as a monetary advisor to Bitfarms, whereas Houlihan Lokey Capital, Inc. is serving as a monetary advisor to Stronghold.
For extra details about the merger and to entry the convention name, go to the unique information supply.
Picture supply: Shutterstock