06:50 AM EDT, 08/21/2024 (MT Newswires) -- Bitfarms ( BITF ) , a global vertically integrated Bitcoin data center company, and Stronghold Digital Mining ( SDIG ) Wednesday agreed to terms under which Bitfarms ( BITF ) will acquire Stronghold in a stock-for-stock deal.

A statement noted the transaction is valued at approximately US$125 million plus the assumption of debt valued at approximately US$50 million.

Stronghold was at last look up more than 50% in US premarket trade at near US$4.60, giving it a market capitalization of about US$42.5 million. Bitfarms ( BITF ) was trading around 5% lower in U.S. premarket.

Among highlights, Bitfarms ( BITF ) says the deal will expand and rebalance its Energy Portfolio to near 50% in the U.S. by year end 2025, which it adds is consistent with its strategic plan.

Bitfarms ( BITF ) said the deal provides it with a "clear path" to 950 MW active power capacity and adds 4.0 EH/s to Bitfarms' ( BITF ) hashrate with expansion capacity of potentially over 10 EH/s with fleet refresh.