Stronghold Digital soars on buyout deal with Bitfarms

Stronghold Digital Mining

21/08/2024 12:28

** Shares of bitcoin miner Stronghold Digital  SDIG.O  jump
46.1% to $4.27 premarket
    ** Bitfarms  BITF.TO  agrees to buy smaller rival SDIG in
all-stock deal valued at about $125 mln
    ** BITF's U.S.-listed shares down 7.2% premarket
    ** Shareholders will receive 2.52 shares of BITF for each
SDIG share held, representing consideration per share of $6.02 
    ** Deal, expected to close in Q1 2025, represents more than
100% premium to SDIG's previous close
    ** Deal could add up to 307 megawatts of power capacity for
BITF and put it on track to increase its energy portfolio to
over 950 MW by the end of 2025 
    ** Transaction comes as Bitfarms is locked in dispute with
rival Riot Platforms  RIOT.O , which made unsolicited $950 mln
offer in April to acquire BITF

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))