Bitfarms Stock surges as the proposed merger between Bitfarms Ltd. and Stronghold Digital Mining, Inc. has been approved.
About 54.5% of Stronghold’s outstanding shares, or 99.6% of the votes cast at a special meeting, supported the merger. Because investors believe the current price undervalues the mining company, Bitfarms’ stock was up about 6% on Friday morning.
According to a statement from Stronghold, the merger is anticipated to close in March 2025, subject to the fulfillment of outstanding requirements.
Both businesses are navigating the cryptocurrency space at the time of this merger. To meet the rising demand for high-performance computing and AI services, Bitfarms recently revealed plans to convert some of its buildings into AI data centers.
Influenced by investors like Starboard Value and D.E. Shaw, other industry participants, such as Riot Platforms, have also contemplated reallocating resources toward AI and high-performance computing.
The diversification of operations by cryptocurrency mining companies in response to market dynamics is reflected in these strategic changes.
Bitfarms Stock Projected Expansion
Riot Platforms and Bitfarms recently settled before Bitfarms’ November special shareholder meeting. As per the agreement, Amy Freedman replaced Andrés Finkielsztain on Bitfarms’ board.
Riot was given the right to purchase additional BITF shares while maintaining at least 15% ownership, and the agreement included a standstill until 2026.
Analysts at H.C. Wainwright predict that Bitfarms stock will rise after a settlement with Riot Platforms, ending a hostile takeover attempt that lasted six months. According to their prediction, the stock price may reach $4.
