Bitcoin mining company Bitfarms Ltd. is in talks to acquire Stronghold Digital Mining Inc. for about $164 million while fending off an acquisition attempt by Riot Platforms Inc., PANews reported, citing people familiar with the matter.
Stronghold shareholders will receive about 2.5 Bitfarms shares for each share they own, the people said. The deal includes the assumption of debt.
Stronghold, which announced in May that it was considering a sale of the company and other alternatives, has a market value of about $66 million. The company had revenue of $19.1 million and a loss of $21.3 million in the second quarter. Bitfarms had revenue of $41.5 million in the second quarter.
Riot, which holds nearly 19% of Bitfarms, has made a $950 million takeover offer. Bitfarms rejected its proposal in April and adopted a "poison pill" defense strategy. The company is scheduled to hold an extraordinary shareholders meeting on October 29.
