Bitfarms in talks to acquire Stronghold for $164 million

Bitcoin miner Bitfarms Ltd. is in talks to buy Stronghold Digital Mining Inc. for about $164 million, while also fending off an attempted takeover by Riot Platforms Inc., according to people familiar with the matter. Stronghold shareholders will receive about 2.5 Bitfarms shares for every share they hold, the people said. The deal includes assumed debt.
Stronghold, which announced in May that it was considering a sale of the company and other options, has a market capitalization of about $66 million. Riot, which holds a nearly 19% stake in Bitfarms, has made an unsolicited $950 million offer. Bitfarms rejected its offer in April. In response to the takeover attempt, Bitfarms has adopted a "poison pill" defense strategy to prevent a hostile takeover. The company is scheduled to hold an extraordinary shareholder meeting on October 29 after Riot tried to replace three board members with candidates it recommended.