Canadian Bitcoin miner gains 'Stronghold' in U.S. with merger completion

The deal between Bitfarms and Stronghold is the largest between two publicly traded Bitcoin mining companies

Welcome to the Monday edition of the Crypto In America newsletter!

We’re kicking off the week with some breaking news regarding a completed M&A deal in the Bitcoin mining space.

This morning, Toronto-based Bitcoin mining company Bitfarms announced the successful completion of its acquisition of Stronghold Digital Mining, a New York-based firm, in an all-stock deal valued at more than $110 million at the time of the transaction.

First announced in August of last year, the merger is the largest to occur between two publicly traded Bitcoin mining companies.

The acquisition, three years in the making, bolsters Bitfarms’ presence in the U.S. energy market, particularly in the “PJM grid”— the largest wholesale electricity market in the United States. With the addition of Stronghold’s assets, Bitfarms is set to dramatically increase its North American energy portfolio from approximately 6% to 80% by the end of the year.

Bitfarms CEO Ben Gagnon tells Crypto In America he’s encouraged by the temperature change surrounding crypto and energy policy in Washington D.C. and optimistic that the merger coincides with a pivotal time for Bitcoin mining in the United States.

“The completion of this strategic acquisition further expands our U.S. footprint and makes us the industry leader in the PJM market,” Gagnon said. “This marks the start of an exciting new chapter for Bitfarms, and we’re thrilled to welcome the talented Stronghold team to write that chapter with us.”

The company’s purchase of Stronghold comes following a failed hostile takeover attempt of Bitfarms last year by Riot Platforms, the world’s second largest bitcoin miner. Following a five-month proxy battle, Riot agreed to abandon its takeover and take a 20% stake in Bitfarms instead.

A spokesperson for Riot declined to comment on the completed merger between Bitfarms and Stronghold.

Shares of Bitfarms, which trade on the NASDAQ and the Toronto Stock Exchange under the ticker BITF, are down slightly in premarket trading. As of this morning’s opening bell, Stronghold will cease trading on the NASDAQ under the ticker SDIG.

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What’s Happening In Washington This Week?

Not a whole lot! The Senate and House of Representatives are in recess this week after striking a deal Friday to keep the government funded through September. Congress will resume its regular session on Monday, March 24.

But this Friday…

All industry eyes will be on the Securities and Exchange Commission as its Crypto Task Force is set to host the first of a series of industry roundtables aimed at exploring critical issues in regulating the $2.7 trillion digital asset industry. Friday’s meeting will focus on determining the security status of digital assets—a hotly debated issue that has loomed over the industry for years.

Titled “How We Got Here and How We Get Out – Defining Security Status,” the roundtable is open to the public and will take place from 1 p.m. to 5 p.m. at the SEC’s headquarters in Washington D.C. The discussion will be led by former SEC commissioner Troy Paredes and feature a panel of legal experts and academics. A town hall will take place after the roundtable where attendees will have the opportunity to ask the panelists questions.

More info on the roundtable, including a livestream link to watch it, will be featured in Friday’s newsletter.

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Crypto Comes to New York

D.C. might be dead this week, but the Big Apple is alive with crypto events.

Today, tokenization firm Securitize is holding its annual confab, Tokenize NYC, that brings together industry leaders from blockchain and traditional finance. The event is being held at The Times Center in Midtown Manhattan.

Tuesday through Thursday, Blockworks Digital Asset Summit (DAS) will take place at the Javits Center, also in Midtown. The event will feature conversations on the future of digital assets, regulatory shifts, and industry advancements with key leaders and policymakers including Bo Hines, Executive Director of the White House’s Presidential Working Group on Digital Assets.

At the same time, the super exclusive, invite-only Medici NY event, which convenes institutional adopters of digital assets, will be taking place at a secret location in the city.

Crypto In America will be on the ground at all three events.

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