Stronghold Digital Mining, Inc. announced that its stockholders have overwhelmingly approved the proposed merger with Bitfarms Ltd.
At a special meeting, approximately 99.6% of votes cast favored the merger, representing about 54.5% of Stronghold’s outstanding shares. Bitfarms’ stock was seen trading higher by around 6% Friday morning as investors are betting the current price undervalues the mining company.
The merger is expected to close in March 2025, pending the satisfaction of remaining conditions, according to a release from Stronghold.
This merger comes as both companies navigate the crypto space. Bitfarms recently announced plans to repurpose some of its facilities into AI data centers, aiming to capitalize on the growing demand for high-performance computing and AI services.
Similarly, other industry players like Riot Platforms have considered reallocating resources toward AI and high-performance computing, influenced by investors such as Starboard Value and D.E. Shaw.
These strategic shifts reflect a broader trend among cryptocurrency mining companies diversifying their operations in response to market dynamics.
Bitfarms’ projected growth
Bitfarms recently settled with Riot Platforms before its special shareholder meeting in November. As part of the agreement, Bitfarms appointed Amy Freedman to its board, replacing Andrés Finkielsztain.
The deal included a standstill until 2026 and granted Riot the right to buy more BITF shares while holding at least 15% ownership.
H.C. Wainwright analysts believe Bitfarms’ stock is set for growth following a settlement with Riot Platforms that ends a six-month-long hostile takeover attempt. They predict the stock price could hit $4.
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