share_log

Bitfarms | 425: Filing under Securities Act Rule 425 of certain prospectuses and communications in connection with business combination transactions

SEC ·  Sep 5 17:33

Summary by Moomoo AI

Bitfarms Ltd., a cryptocurrency mining company, has announced its plans to acquire Stronghold Digital Mining, Inc. The transaction, which is subject to shareholder and regulatory approvals, is expected to close next year. Bitfarms is set to purchase Stronghold for $175 million, which includes taking on $50 million of Stronghold's debt. The deal represents a 100% premium over Stronghold's company value prior to the offer, a significant increase compared to the 30% premium offered by Riot in a previous bid for Bitfarms. The acquisition aims to expand Bitfarms' operational capacity, with a target hashrate of 10 EH/s by 2025 and an increase in the Bitfarms energy portfolio to 950 MW by year-end 2025. The merger is also expected to provide synergies, enhanced energy efficiency, and...Show More
Bitfarms Ltd., a cryptocurrency mining company, has announced its plans to acquire Stronghold Digital Mining, Inc. The transaction, which is subject to shareholder and regulatory approvals, is expected to close next year. Bitfarms is set to purchase Stronghold for $175 million, which includes taking on $50 million of Stronghold's debt. The deal represents a 100% premium over Stronghold's company value prior to the offer, a significant increase compared to the 30% premium offered by Riot in a previous bid for Bitfarms. The acquisition aims to expand Bitfarms' operational capacity, with a target hashrate of 10 EH/s by 2025 and an increase in the Bitfarms energy portfolio to 950 MW by year-end 2025. The merger is also expected to provide synergies, enhanced energy efficiency, and carbon capture potential. However, the deal has raised concerns among shareholders regarding the high premium and potential share dilution. The merger will involve a share swap, with Stronghold shareholders receiving Bitfarms shares. The announcement was made on September 4, 2024, and further details will be provided in a proxy statement/prospectus to be filed with the SEC.
Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more