Cryptocurrencies
Bitcoin Miner Bitfarms Buys Stronghold for $125 Million in Stock Transaction
- Shareholders will receive 2.52 shares for each share held
- Industry is consolidating after revenue rewards were reduced
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Bitcoin mining company Bitfarms Ltd. agreed to acquire Stronghold Digital Mining Inc. for about $125 million in stock while it fends off a takeover attempt by Riot Platforms Inc.
Stronghold shareholders will receive 2.52 Bitfarms shares for each share held, the companies said in a statement Wednesday. That’s a premium of around 70% of Stronghold’s 90-day volume-weighted average price on Nasdaq as of Aug. 16. The transaction also includes assumed debt of about $50 million.