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The offer equates to $6.02 per share for Stronghold versus its close last of $2.93.
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Stronghold said in May it was considering its strategic options, while Bitfarms is itself dealing with unwanted attention from Riot Platforms.
Bitcoin miner Bitfarms (BITF) said it agreed to buy rival Stronghold Digital (SDIG) for $175 million in stock and assumed debt as it looks to diversify its revenue sources beyond the production of cryptocurrency.
The offer comprises $125 million in stock based on 2.52 Bitfarms shares for each one of Stronghold, a premium of 71% to Stronghold’s 90-day volume-weighted average price on Nasdaq as of Aug. 16, Bitfarms said in a statement. It equates to $6.02 per share versus SDIG’s close last night of $2.93. Shares are currently higher by 64% premarket to $4.80. BITF is lower by 7% to $2.19.
Bitcoin miners have been coming to terms with April’s 50% cut in the reward they receive for adding blocks to the blockchain. The…
