Bitfarms Expands U.S. Operations with Stronghold Acquisition, Adds 1.1 GW Pipeline
2min read Bitfarms Ltd. has successfully completed the acquisition of stronghold digital Mining, Inc., a move that significantly expands its U.S. operations and energy capabilities. This strategic acquisition secures a 1.1 GW growth pipeline in Pennsylvania, enhancing Bitfarms' position in the cryptocurrency mining market. The deal increases Bitfarms' energy portfolio to 623 Megawatts Under Management (MWuM), with an additional 165 MW of active generating capacity and 142 MW of immediately available import capacity. This expansion is anticipated to reduce overall electricity costs through PJM demand response programs.
The acquisition also rebalances Bitfarms' year-end 2025 energy portfolio to 80% North American and 20% international, reflecting a strategic shift towards North American operations. This move aligns with Bitfarms' broader strategy to develop high-performance computing (HPC) and artificial intelligence (AI) capabilities. The company has identified potential to develop two power campuses totaling nearly one gigawatt for HPC/AI, with strategic partners WWT and ASG prioritizing Stronghold sites for potential conversion.
Ask Aime: What is the impact of Bitfarms' acquisition of Stronghold Digital Mining on the cryptocurrency mining market and its future development?
In terms of hashrate, the acquisition adds nearly 1 Exahash Under Management (EHuM) through existing Canaan hosting agreements with a 50% profit split, bringing Bitfarms' total to 18 EHuM. Previously announced Stronghold hosting agreements are now part of Bitfarms' self-mining operations.
Ben Gagnon, Chief Executive Officer of bitfarms, emphasized the strategic significance of the acquisition, stating that it expands Bitfarms' U.S. footprint and positions the company as a leader in the PJM market. The combined PJM pipeline, spanning three sites in Pennsylvania, totals over 1 GW with strategically located land, power, and fiber, well-suited for both HPC/AI and Bitcoin mining. Gagnon expressed excitement about the new chapter for Bitfarms and the integration of the talented Stronghold team.
The transaction involved a stock-for-stock merger, with Stronghold shareholders receiving 2.52 shares of Bitfarms for each share of Stronghold they owned. Approximately 59,678,164 Bitfarms common shares and 10,574,848 Bitfarms warrants were issued in connection with the merger. Additionally, approximately $44.5 million was paid at closing to retire outstanding Stronghold loans. Following the completion of the transaction, SDIG’s common stock ceased trading on Nasdaq.
Founded in 2017, Bitfarms is a global Bitcoin and vertically integrated data center company that sells its computational power to mining pools, receiving payment in Bitcoin. The company operates 15 Bitcoin data centers in four countries, powered predominantly by environmentally friendly hydro-electric and long-term power contracts. Bitfarms is committed to using sustainable and often underutilized energy infrastructure.
The acquisition of Stronghold Digital Mining is a strategic move that enhances Bitfarms' operational capabilities and market position. By expanding its U.S. footprint and energy portfolio, Bitfarms is well-positioned to create long-term value for its shareholders. The integration of Stronghold's power assets and Bitfarms' operational expertise will drive growth in both Bitcoin mining and HPC/AI sectors, marking an exciting new chapter for the company.
