Bitfarms Plans To Buy Stronghold Digital Mining In $164M Deal

Bitfarms Ltd, the Canada-based Bitcoin mining firm, is recently working out plans to acquire Stronghold Digital Mining in a massive $164 million deal

Bitcoin mining company Bitfarms Ltd is reportedly in talks to acquire rival miner Stronghold Digital Mining in a deal valued at about $164 million, according to people familiar with the matter.

The transaction would involve Bitfarms offering 2.5 of its shares for each Stronghold share outstanding, the sources said, adding that the deal also includes assuming Stronghold’s debt.

The sources requested anonymity because the discussions are private. Representatives for Bitfarms and Stronghold did not immediately respond to requests for comment.

Earlier this year, Stronghold said it was exploring a sale of the company amid stress on its balance sheet following Bitcoin’s halving event in April. The halving event cut miner rewards by 50%, putting operational strain on most mining companies. Some BTC miners are pivoting to capitalize on the power demand in the artificial intelligence (AI) industry.

For the second quarter, Pennsylvania-based Stronghold reported a loss of $21.3 million on revenue of $19.1 million. Shares of Stronghold have dropped about 60% so far this year.

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