Form 4: Stronghold Digital Mining Director Trowbridge Disposes of Shares in Bitfarms Merger

Thomas R. Trowbridge IV, a director of Stronghold Digital Mining, disposed of 65,944 shares of Class A common stock following the merger with Bitfarms Ltd.

Summary

• Thomas R. Trowbridge IV, a director of Stronghold Digital Mining, Inc., disposed of 65,944 shares of Class A common stock on March 14, 2025.
• The disposal was a result of the merger between Stronghold and Bitfarms Ltd., where Stronghold merged into a subsidiary of Bitfarms.
• Each share of Stronghold Class A common stock was converted into the right to receive 2.52 Bitfarms common shares, with fractional shares paid in cash.
• The merger agreement was initially dated August 21, 2024, and amended on September 12, 2024.
• On March 13, 2025, the last trading day before the merger, Bitfarms common shares closed at $1.09.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction related to a previously announced merger. The sentiment is moderately positive as the merger has been completed.

Future Outlook

The document does not contain specific forward-looking statements beyond the completion of the merger.

Industry Context

This announcement reflects consolidation activity within the digital mining industry, as Stronghold Digital Mining merges with Bitfarms, a larger player in the sector. This type of merger can be driven by factors such as economies of scale, access to capital, and geographic expansion.

Comparison to Industry Standards

• Mergers and acquisitions are common in the mining industry as companies seek to consolidate resources and improve efficiency.
• Bitfarms is a publicly traded company and a large player in the Bitcoin mining space, similar to Riot Platforms, Marathon Digital Holdings, and Hut 8 Mining Corp.
• The conversion ratio of 2.52 Bitfarms shares per Stronghold share would need to be evaluated against other comparable transactions to determine if it was a fair valuation.

Stakeholder Impact

• Shareholders of Stronghold received Bitfarms shares as a result of the merger.
• The merger may impact employees of both Stronghold and Bitfarms, potentially leading to restructuring or synergies.

Key Dates