Bitfarms Ltd., a major player in the Bitcoin mining industry, has successfully completed its acquisition of Stronghold Digital Mining, Inc. on March 17, 2025. This important deal is a game changer, allowing Bitfarms to significantly expand its presence in the U.S. market. The acquisition enhances its energy capabilities and makes Bitfarms one of the leading Bitcoin miners in the PJM market, a key region for energy in the United States.
1.1 Gigawatts of Growth in Pennsylvania
The acquisition of Stronghold not only strengthens Bitfarms’ energy portfolio but also secures a massive growth pipeline of 1.1 gigawatts in Pennsylvania. This growth pipeline positions Bitfarms to capitalize on the ever-growing demand for Bitcoin mining and the expanding High-Performance Computing (HPC) and Artificial Intelligence (AI) sectors. With 165 megawatts of active generating capacity and an additional 142 megawatts of import capacity, the expansion places Bitfarms at the forefront of energy management.
Strategic Expansion in the U.S. Market
This acquisition is a strategic move, rebalancing Bitfarms’ energy portfolio to comprise 80% North American and 20% international assets. By controlling a substantial share of the PJM energy market, Bitfarms is establishing itself as a key energy provider in the United States, ready to meet the increasing needs of Bitcoin mining operations.
Advancing in HPC and AI
The deal sets the stage for Bitfarms to venture into high-performance computing and artificial intelligence, sectors that are rapidly gaining momentum. The potential to develop campuses dedicated to HPC and AI operations totaling nearly one gigawatt indicates Bitfarms’ forward-thinking approach toward utilizing cutting-edge technologies and improving operational efficiencies.
Strategic MW Growth and Exahash Increases
Following the acquisition, Bitfarms added nearly 1 Exahash Under Management (EHuM), bringing its total to an impressive 18 EHuM. This increase in processing power will enable Bitfarms to enhance its Bitcoin mining activities significantly and improve profitability in a competitive market.
Details of the Acquisition
- Bitfarms acquired Stronghold through a stock-for-stock merger, exchanging approximately 2.52 Bitfarms shares for each Stronghold share.
- The total deal was valued at around $125 million, involving the retirement of outstanding loans from Stronghold valued at about $44.5 million.
- With the completion of this acquisition, Stronghold’s shares ceased trading on Nasdaq, marking the end of its status as an independent, publicly traded company.
Ben Gagnon, the CEO of Bitfarms, believes that this merger not only enhances the company’s operational capabilities but also represents a long-term growth opportunity for its shareholders. He expressed confidence in Bitfarms’ positioning amidst a growing competitive landscape, especially following recent takeover attempts by other companies such as Riot Platforms.
Overall, the acquisition of Stronghold Digital Mining marks an exciting new chapter for Bitfarms Ltd. as it looks to solidify its position as a leader in the rapidly evolving Bitcoin mining market.
