Bitfarms to Acquire Stronghold Digital Mining in an All-Stock Deal for $175 Million

Bitcoin-miner Bitfarms Ltd. (BITF) entered a definitive merger agreement on August 21, 2024, to acquire rival Stronghold Digital Mining, Inc. (SDIG) in an all-stock deal valued at about $175 million, including debt.

Details of the Merger:

Under the merger terms, Stronghold shareholders will receive 2.52 shares of Bitfarms for each share of Stronghold they own, at about $6.02 per share, representing a premium of 105.46% from the stock’s last close.

Company Profile:

Stronghold Digital Mining is a Bitcoin mining company that uses eco-friendly coal plants in Pennsylvania to power its operations and also helps with environmental cleanup.

Bitfarms is a Bitcoin mining company that started in 2017, running mining farms in several countries. They use mostly eco-friendly energy to mine Bitcoin and also host mining equipment for other companies.

Deal Details and Timeline:

The deal is anticipated to be finalized in the first quarter of 2025, at which point Stronghold shareholders are expected to own just under 10% of the combined company.

Stronghold Digital’s current EV/Sales (TTM) ratio is 1.10, below the sector median of 3.10.

Stronghold Digital had started a strategic review process in March, to look for alternatives including the sale of the company. Bitfarms itself is trying to dodge a hostile takeover from Riot Platforms (RIOT) since it received an offer from the rival in April.

Deal Metrics:

For more in-depth information regarding this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Stronghold Digital Mining, Inc. (SDIG) by Bitfarms Ltd. (BITF)

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure.
– A timeline of events as the merger progresses through the HSR period, regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.

Disclaimer: Please carry out your own due diligence before buying or selling any securities mentioned in this article. We do not guarantee the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article