Bitfarms To Acquire Stronghold in $125M Merger, Boosting U.S. Bitcoin Mining

Bitcoin BTC/USD miner Bitfarms Ltd BITF shares are trading lower by 6.8% to $2.20 Wednesday morning after the company announced it entered into a definitive merger agreement to acquire Stronghold Digital Mining Inc SDIG, sending Stronghold shares skyrocketing some 63% higher to $4.79.

What Investors Need To Know: The deal is valued at approximately $125 million in equity, with Bitfarms also assuming about $50 million of Stronghold’s debt.

Through this acquisition, Bitfarms aims to increase its energy portfolio to over 950 MW by the end of 2025, with a significant portion located in the U.S. The merger also positions Bitfarms to further expand its capacity to 1.6 GW in the future, with approximately 66% of this capacity based in the U.S., up from its current 6%.

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As part of the agreement, Stronghold shareholders will receive 2.52 shares of Bitfarms for each share of Stronghold they own, representing a 71% premium to Stronghold’s 90-day average stock price as of August 16. Post-merger, Stronghold shareholders are expected to own nearly 10% of the combined entity.

The Boards of Directors of both companies have unanimously approved the merger, which is anticipated to close in the first quarter of 2025, pending regulatory approvals and shareholder consent.

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How To Buy BITF Stock

By now you're likely curious about how to participate in the market for Bitfarms – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, BITF has a 52-week high of $3.91 and a 52-week low of $0.92.