Bitfarms , a Bitcoin mining firm, and Stronghold Digital Mining are set to merge. This development follows an overwhelming vote by Stronghold’s stockholders in favor of the merger. A notable 99.6% of the total votes cast desired the merger, which represents 54.5% of Stronghold’s outstanding shares. Merger Amid Diversification Plans The update on the merger has significantly boosted Bitfarms’ stock. Notably, Bitfarms’ stock surged by about 6% as investors in the mining firm believed the stock at the prevailing market price was undervalued. The merger will proceed with the overwhelming nod from stockholders, and the final processes should conclude by March 2025. The move is noteworthy as Bitfarms recently announced it plans to reuse some of its facilities as AI data centers. This will leverage the increasing demand for high-performance AI services and computing. BitFarms and Stronghold: Merger Terms and Strategic Expansion Notably, as of August 2024, when the acquisition idea was first initiated, Bitfarms agreed to a stock-for-stock merger deal. The acquisition cost was put at a total of $175 million , both in stocks and debt. A total of $125 million is in stock, equivalent to 2.25 Bitfarms shares to one of Stronghold’s shares. According to the deal, Bitfarms will also inherit $50m million in debt as part of Stronghold’s liability. The move is strategic, as Bitfarms hopes to diversify its operations in line with the shift in market dynamics. Bitfarms is not the only crypto mining company rethinking its operations; several others have also done so. For instance, Riot Platforms, another heavyweight industry, has considered reallocating resources toward AI and high-performance computing. Bitfarms-Riot Agreement and Future Outlook Interestingly, Bitfarms recently reached an agreement with Riot Platforms . As part of the deal, Bitfarms would stand at a standstill until 2026, while Riot has the right to buy more BITF shares. The goal is to hold at least 15% ownership of the company. However, Riot cannot acquire more than 20% of Bitfarms shares without express approval from the board. That conditionality prevents Riot’s hostile takeover . The overall goal is to enhance the firm’s productivity as a major player in the Bitcoin mining sector. Other rivals are also positioned to take advantage of new trends in the industry. The post Bitfarms Stock Surges 6% After Stronghold Merger Approval appeared first on TheCoinrise.com .
