Bitfarms Ltd., a Bitcoin mining company from Canada, is planning to buy Stronghold Digital Mining in a $164 million deal.
According to a press release on August 21, Bitfarms will offer 2.5 of its own shares for each share of Stronghold. The deal also includes taking on Stronghold’s current debt.
Stronghold has been struggling financially after the Bitcoin halving event in April. This event cut Bitcoin mining rewards by half, which has put a lot of pressure on mining companies.
During the second quarter, the Pennsylvania-based company reported a loss of $21.3 million on $19.1 million in revenue, leading to a 60% drop in its stock price this year.
On the other hand, Bitfarms earned $41.5 million in revenue in the same period. By buying Stronghold, Bitfarms hopes to increase its mining capacity and make use of Stronghold’s power resources and connections to local power grids.
This acquisition comes as Bitcoin miners are beginning to recover from recent market difficulties. Recent data from CryptoQuant suggests that the worst may be over, with signs of improvement in the mining industry. Moreover, Bitcoin’s hashrate, which measures mining activity, has hit a new record high of 638 exahashes per second, showing renewed confidence in the market.
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