v3.26.1
BUSINESS COMBINATION
 6 Months Ended
Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
BUSINESS COMBINATION BUSINESS COMBINATION
On March 14, 2025 (the "Acquisition Date"), the Company acquired 100% of the issued share capital of Stronghold Digital Mining, Inc. ("Stronghold") in a stock-for-stock merger transaction. Under the terms of the merger agreement, each Stronghold shareholder received 2.52 shares of Bitfarms for each Stronghold share they owned. A total of 59,866,609 common shares and 12,893,650 warrants were issued. In addition, the Company paid $51,060 on closing to retire Stronghold's outstanding loans and other closing costs. The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The fair value of the 59,866,609 shares issued as part of the consideration paid for Stronghold was based on the published share price on March 14, 2025 of $1.11 per share. Issuance costs of $196, which were directly attributable to the issuance of the shares, were netted against the deemed proceeds.

As a result of the business combination, the pre-existing hosting agreements between the Company and Stronghold were effectively settled. A gain of $945 was recognized on the settlement of the Refundable Hosting Deposits.

Stronghold is a vertically integrated power generation and data center company focused on environmental remediation and reclamation services in Pennsylvania, United States. The Stronghold transaction is aligned with the Company's strategic objectives to diversify its operations and expand its presence in the United States through vertical integration of power generation and energy arbitrage capabilities.
NOTE 3:    BUSINESS COMBINATION (Continued)

Details of the final purchase price allocation and the fair value of the net assets acquired on March 14, 2025 are as follows:
As of March 14,
2025
Purchase consideration
Cash paid through repayment of debts
44,982 
Reimbursement of Stronghold's acquisition-related costs
6,078 
Fair value of shares issued
66,452 
Fair value of warrants issued
11,477 
Fair value of replacement stock-based compensation
232 
Settlement of Refundable Hosting Deposits
15,474 
Fair value of consideration transferred
144,695 
Net identifiable assets acquired
Cash
2,976 
Accounts receivable
1,095 
Short-term prepaid deposits
1,732 
Other assets (current)
118 
Rights to renewable energy credits and waste tax credits
8,989 
Inventories
3,269 
Property, plant and equipment
152,264 
Intangible assets
51 
Operating and finance lease right-of-use assets
1,594 
Other non-current assets
1,550 
Accounts payable and accrued expenses
(23,488)
Current portion of long-term debt
(420)
Current portion of operating and finance lease liabilities
(800)
Long-term debt
(460)
Non-current operating and finance lease liabilities
(756)
Other non-current liabilities
(3,019)
Total net identifiable assets acquired
144,695 

Total acquisition-related costs that were not directly attributable to the issuance of shares amounted to $7,081, of which $1,571 were incurred during the first quarter of 2025, and $5,510 were expensed during the year ended December 31, 2024. These amounts were included in general and administrative expenses in the consolidated statements of operations.
The following table presents the supplemental cash flow information:
Year ended December 31,
2025
Cash outflow, net of cash acquired
Cash consideration
51,060 
Less: cash balances acquired
(2,976)
Net cash outflow related to investing activities
48,084