Canada’s largest mining operator Bitfarms and US-based Stronghold Digital Mining have announced a business merger agreement. The deal is valued at approximately $125 million in equity value, plus about $50 million to cover the Canadian miner’s debt obligations.

Bitfarms announced that the acquisition of Stronghold will bring significant assets, including a 4.0 EH/s hashrate and additional power capacity of 165 MW. The merger, according to representatives of the Canadian company, will expand Bitfarms’ “energy portfolio” and increase its power capacity to more than 950 MW by the end of 2025, with a possible future expansion to 1.6 GW. In addition, through the acquisition of the American company’s assets, Bitfarms will become the owner of more than 300 hectares of land and two power plants in Pennsylvania.

The merger of the two mining companies was unanimously approved by the boards of directors of both companies and is expected to be completed in the first quarter of 2025, subject to approval by shareholder meetings and regulators.

The announcement of the merger with Stronghold Digital Mining came amid a failed $950 million takeover attempt by competitor Riot Platforms for Bitfarms. Riot Platforms, which owns more than 15% of Bitfarms’ voting shares, has not abandoned its bid for Bitfarms and intends to include its functionaries on the board of directors of the Canadian mining operator.