Bitfarms Ltd. has finalized its acquisition of Stronghold Digital Mining, Inc., marking an expansion of its U.S. operations and energy capabilities. The deal strengthens Bitfarms’ position in the PJM market and advances its high-performance computing (HPC) and artificial intelligence (AI) initiatives.
Bitfarms Advances HPC/AI Strategy with Stronghold Acquisition
The acquisition increases Bitfarms’ energy portfolio to 623 megawatts under management, with an additional 165 megawatts of active generating capacity and 142 megawatts of immediately available import capacity. It also secures a 1.1-gigawatt growth pipeline in Pennsylvania, including current and future power generation and grid import capacities. This expansion is expected to reduce overall electricity costs through PJM demand response programs.
Bitfarms’ energy portfolio will now be rebalanced to 80% North American and 20% international by the end of 2025. The company also plans to develop two power campuses totaling nearly one gigawatt for HPC/AI, with strategic partners WWT and ASG prioritizing Stronghold sites for potential conversion.
The deal adds nearly one exahash per second (1 EH/s) under management through existing Canaan hosting agreements, bringing Bitfarms’ total to 18 EH/s. Previously announced Stronghold hosting agreements are now part of Bitfarms’ self-mining operations.
In a stock-for-stock merger, Stronghold shareholders received 2.52 shares of Bitfarms for each share of Stronghold they owned. Approximately 59.7 million Bitfarms common shares and 10.6 million warrants were issued, and $44.5 million was paid to retire outstanding Stronghold loans.
Founded in 2017, Bitfarms (Nasdaq: BITF) is a global bitcoin (BTC) and vertically integrated data center company. The acquisition marks a significant step in Bitfarms’ U.S. strategy and its development of an HPC/AI business geared for scale.