07:22 AM EDT, 08/21/2024 (MT Newswires) -- Bitfarms ( BITF ) will acquire rival cryptocurrency miner Stronghold Digital Mining ( SDIG ) for $125 million in stock and the assumption of about $50 million in debt, the companies said Wednesday.

The deal has been unanimously approved by the boards of the two companies and is expected to close in Q1 2025, subject to the approval of Stronghold shareholders, clearance of regulatory hurdles, third-party consents, and customary closing conditions, according to a joint statement.

Under their definitive merger agreement, Stronghold shareholders will receive 2.52 shares of Bitfarms ( BITF ) for each share, a 71% premium over Stronghold's 90-day volume-weighted average price on Nasdaq as of Aug. 16, the companies said.

Stronghold shareholders are anticipated to own about 10% of the combined company, with Stronghold Chief Executive and Chairman Gregory Beard serving as an advisor, the companies added.

Bitfarms ( BITF ) shares were down 8% while Stronghold shares were more than 43% higher in recent premarket activity.

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