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Bitfarms Completes Acquisition of Stronghold

Montreal, Quebec – Bitfarms Ltd. (TSX: BITA, BITF), a leading Canadian cryptocurrency mining company, today announced that it has completed its acquisition of Stronghold Digital Mining Inc. (SDM). The deal, which was first announced in February, brings together two of the largest cryptocurrency mining operations in North America.

Under the terms of the agreement, Bitfarms acquired all of SDM's outstanding shares for a total consideration of $26 million, comprised of $18 million in cash and $8 million in Bitfarms common shares. The acquisition is expected to significantly expand Bitfarms' mining capacity and further solidify its position as a major player in the global cryptocurrency mining industry.

"We are thrilled to have completed the acquisition of Stronghold Digital Mining and welcome their talented team to the Bitfarms family," said Emiliano Grodzki, CEO of Bitfarms. "This deal represents a major milestone in our company's growth and will enable us to increase our mining capacity and further diversify our operations."

Stronghold Digital Mining, which is headquartered in Pennsylvania, operates a large-scale cryptocurrency mining facility in the state. The facility, which is powered by renewable energy, is equipped with over 10,000 ASIC miners and has a current mining capacity of approximately 1.5 exahash per second.

The acquisition is expected to be immediately accretive to Bitfarms' earnings and will add significantly to the company's overall mining capacity. Bitfarms now has a total mining capacity of over 2.5 exahash per second, making it one of the largest cryptocurrency mining operations in North America.

"We are excited to join forces with Bitfarms and leverage their expertise and resources to drive our growth and success," said Michael Hill, CEO of Stronghold Digital Mining. "This acquisition represents a major step forward for our company and will enable us to further expand our operations and increase our mining capacity."

The acquisition is expected to be completed by the end of the first quarter of 2023, subject to customary closing conditions.