Summary by Moomoo AI
On August 21, 2024, Bitfarms announced a definitive agreement to acquire Stronghold Digital Mining. The acquisition, which is expected to close in the first quarter of 2025, is valued at $125 million in stock plus the assumption of $50 million in debt. Bitfarms CEO Ben Gagnon and Stronghold's Chairman and CEO Greg Beard discussed the strategic rationale behind the acquisition, highlighting the vertical integration into energy generation, expansion of Bitfarms' energy portfolio, and the environmental benefits of the transaction. The acquisition includes two US power plants with a combined potential of over 300 MW, which could increase Bitfarms' energy portfolio to 950 MW by the end of 2025. The all-stock transaction is expected to be highly accretive and will preserve Bitfarms' balance sheet for future growth. The deal also includes the integration of technologies that aim to clean up pollution from the industrial revolution, contributing to environmental remediation. The acquisition is subject to approval by Stronghold's shareholders and customary closing conditions.
