4 weeks ago
Bitcoin miner Bitfarms said it has entered into a merger statement to get Stronghold Digital Mining for $125 cardinal successful equity value, alongside $50 cardinal successful assumed debt.
In a associated Aug. 21 statement, some companies revealed that their Boards of Directors unanimously approved the transaction. The deal—subject to regulatory support and different conditions—is expected to adjacent successful the archetypal 4th of 2025.
As portion of the acquisition, Stronghold shareholders volition person 2.52 shares of Bitfarms for each Stronghold stock they hold. Following the merger, Stronghold shareholders are projected to ain little than 10% of the combined entity.
Expansion potentials
The merger could boost Bitfarms’ capableness to 307 MW, advancing its extremity of reaching 950 MW by the extremity of 2025. This improvement comes arsenic Bitfarms continues to research expanding its capableness to enactment high-performance computing (HPC) and AI ventures successful summation to its Bitcoin mining operations.
Bitfarms CEO Ben Gagnon revealed that the merger followed 3 years of negotiations and stated that the woody would unafraid a beardown aboriginal for the miner’s operations. He said:
“With this transaction, we expect expanding and rebalancing our vigor portfolio to 950 MW, with astir 50% located successful the U.S. by the extremity of 2025. We besides spot imaginable for multi-year enlargement up to 1.6 GW, with astir 66% successful the U.S., up from astir 6% today.”
Riot Platforms’ takeover efforts
This acquisition occurs against Riot Platforms‘ hostile takeover attempt connected Bitfarms.
Last week, Riot revealed that it had raised its involvement successful Bitfarms to 85.3 cardinal shares. This means the 3rd largest Bitcoin miner connected Wall Street owns 18.9% of the Canadian mining company, adding a caller magnitude to its ongoing efforts to exert unit connected Bitfarms’ absorption aft a failed $950 cardinal takeover bid successful April.
Since then, Riot has adopted an attack that resulted successful important boardroom changes for Bitfarms, including the abrupt exit of co-founder Nicolas Bonta and the appointment of Gagnon arsenic the firm’s CEO.
The station Bitfarms to get Stronghold Digital Mining successful $175M merger appeared archetypal connected CryptoSlate.
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