Bitfarms’ Stronghold Digital Acquisition Expands U.S. Mining Capacity and Energy Portfolio

• Bitfarms’ acquisition of Stronghold Digital will boost U.S. Bitcoin mining capacity to nearly 50% by 2025, significantly expanding its energy portfolio.
• Despite a 1.3% drop in mining difficulty, Bitfarms’ Bitcoin production fell by 39% year-over-year due to the halving event and increased network hashrate.
• With this strategic acquisition, Bitfarms plans to increase its overall capacity to 1.6 GW by 2025, with 66% of this located in the U.S.

Bitfarms Ltd. has made a strategic move to expand its Bitcoin mining and energy portfolio with the acquisition of Stronghold Digital Mining. This acquisition is set to increase Bitfarms’ U.S. mining capacity to nearly 50% by 2025, a significant jump from the current 6%. By rebalancing and strengthening its energy portfolio, Bitfarms aims to achieve 950 MW by the end of 2025.

Strategic Growth Plan

CEO Ben Gagnon emphasized that this acquisition aligns with Bitfarms’ strategy to diversify and grow its operations. He stated, “By vertically integrating with power generation and advancing energy trading capabilities, we position ourselves for multi-year growth. We aim for a total expansion capacity of up to 1.6 GW, with 66% of this in the U.S.”

As part of this strategic expansion, Bitfarms has taken over its first mega-site in Sharon, Pennsylvania. The company completed the purchase of a 110 MW site in late 2024, with 30 MW expected to be operational by then. By 2025, the site’s overall capacity is projected to reach 120 MW, following the installation of a 10 MW unit as planned.

Bitcoin Production Challenges

Despite these advancements, Bitfarms faced challenges in Bitcoin production. In August, there was a 1.3% decrease in mining difficulty, which reduced Bitcoin output from 253 BTC in July to 233 BTC. This decline is largely attributed to increased network difficulty, although higher corporate hashrate from new Bitmain miners partially offset the impact.

The recent halving event, coupled with a rise in network hashrate, led to a 39% year-over-year decrease in Bitcoin production. To manage its treasury, Bitfarms bought 86 BTC worth $5.1 million and sold 147 BTC for $8.8 million. As of now, Bitfarms holds 1,103 BTC, valued at approximately $65.1 million.

Apart from these developments, Riot Platforms, which holds a 19.9% stake in Bitfarms, is closely monitoring the company. Riot is pushing for changes to the board, citing concerns about the Stronghold acquisition and governance procedures.