Bitcoin mining and data center company Bitfarms has completed the acquisition of Stronghold Digital.
The stock-for-stock merger was initially announced last August, valued at $175 million at the time, and was expected to close in the first quarter of 2025. However, the exact valuation at completion on Monday was not disclosed.
Following the transaction, Stronghold shareholders received 2.52 shares of Bitfarms for each share of Stronghold, making Stronghold a wholly-owned subsidiary of Bitfarms. Approximately 59,678,164 Bitfarms common shares and 10,574,848 Bitfarms warrants are being issued as part of the merger. Additionally, $44.5 million was paid at closing to settle outstanding Stronghold loans, and Stronghold's common stock ceased trading on the Nasdaq.
The deal expands Bitfarms' hashrate to 18 EH/s, its energy portfolio to 623 MW under management and secures a 1.1 GW growth pipeline in Pennsylvania, the firm said in a statement, rebalancing its operations to 80% North American and 20% international by year-end. It also positions Bitfarms to further its high-performance computing (HPC) and AI hosting strategy.
"The completion of this strategic acquisition further expands our U.S. footprint and makes us the industry leader in the PJM market," Bitfarms CEO Ben Gagnon said. "With Stronghold's portfolio of power assets, combined with our operational expertise and balance sheet strength, we are well positioned to create long-term value for our shareholders by executing on our U.S. strategy and developing an HPC/AI business geared for scale."
Bitfarms' stock closed down 0.9% on Monday at $1.10, according to The Block's Bitfarms Price page, with a market cap of $543.2 million.
Following Bitfarms' merger with Stronghold, HIVE Digital announced on Tuesday it had completed the acquisition of Bitfarms' 200 MW hydro-powered facility in Yguazú, Paraguay for $56 million. The deal also includes approximately $19 million as reimbursement for power deposits made to the local utility company and $10 million in remaining capital obligations like construction costs.
The acquisition expands HIVE's mining capacity by 317% to 6 EH/s, with projections to reach 25 EH/s by September, alongside its additional facilities in Canada and Sweden.
HIVE's leadership met with Paraguayan President Santiago Peña and other political leaders in January, gaining support for its commitment to sustainable growth in the country before signing a binding letter of intent to acquire Bitfarms' site. Following completion, HIVE's operational capacity in Paraguay will total 300 MW after construction of its existing 100 MW mining facility in the country, announced last July.
The Yguazú site is being developed over two phases, the first of which is 80% complete and scheduled for completion by April, HIVE said, adding 6 EH/s in capacity. The second phase is expected to be completed by August and will add a further 6.5 EH/s via hydro-cooled ASICs. HIVE estimates the total net costs to finish the site to be $400,000 per MW upon completion.
"Our priority is delivering shareholder value while fostering sustainable local growth," HIVE President and CEO Aydin Kilic said. "This acquisition allows us to quadruple our capacity — from 6 EH/s to 25 EH/s in 2025 — while maintaining one of the most energy-efficient operations in the industry. Beyond technology, we are committed to investing in Paraguay's infrastructure, supporting education and creating high-quality local jobs."
In July 2023, HIVE Digital rebranded from HIVE Blockchain Technologies amid a diversification pivot to data center hosting for AI compute.
HIVE Digital closed up 0.6% on Monday at $1.75, with a market cap of $265 million.
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