24/7 Market News Snapshot 21 August, 2024 – Stronghold Digital Mining, Inc. Class A Common Stock (NASDAQ:SDIG)
DENVER, Colo., 21 August, 2024 (247marketnews.com) – (Nasdaq:SDIG) are discussed in this article.
Stronghold Digital Mining, Inc. (SDIG) is currently facing a bearish trend, trading at $4.749 in pre-market, reflecting no change from the previous session close of $2.930. The notable uptick in trading volume, reaching 1.26 million shares, points to increased investor interest as traders continue to evaluate the stock’s momentum. While the transition from a lower price point may hint at possible bullish reversal signals, uncertainties remain. Analysts have identified key support around $4.50, with resistance noted at $5.00. Observing volume patterns and news catalysts in the upcoming trading sessions will be crucial for market participants.
In a significant development, Bitfarms Ltd. (Nasdaq/TSX:BITF) and Stronghold Digital Mining, Inc. (Nasdaq:SDIG) have announced a strategic merger agreement valued at approximately $125 million in equity and the assumption of about $50 million in debt. This stock-for-stock transaction is aimed at expanding Bitfarms’ active power capacity to a target of 950 MW by the end of 2025.
The merger is designed to leverage Stronghold’s operational expertise in Bitcoin mining, while enhancing Bitfarms’ energy capabilities by adding 4.0 EH/s to its hashrate, potentially exceeding 10 EH/s through a scheduled fleet refresh by 2025. Stronghold’s existing infrastructure, which operates with a generating capacity of 165 MW and can import up to 790 MW, is expected to enable the new entity to harness competitively priced power for Bitcoin mining and high-performance computing applications.
The transaction, pending regulatory and shareholder approvals, is anticipated to finalize in the first quarter of 2025. This alliance, a product of extensive discussions over three years, is expected to drive greater value for shareholders and present innovative energy solutions within the evolving cryptocurrency mining landscape. An investor conference call is scheduled for today to discuss the merger and its implications further.