The bitcoin (BTC) mining sector is in the middle of a consolidation phase which was triggered by the recent halving in April, investment bank Architect Partners said in a report on Sunday.
“The strategic driver is to secure large and scalable veri center capacity with access to low cost power and capital, all made easier as a company gets larger,” managing partner Eric Risley and analyst Arjun Mehra wrote.
Bitfarms’ (BITF) planned acquisition of Stronghold Digital Mining (SDIG) is evidence of this recent M&A trend.
The deal is noteworthy as Bitfarms was subject to an unsolicited takeover offer from rival miner Riot Platforms (RIOT) in May, and Riot has since bought 19% of Bitfarms’ stock in the open market, agitated to replace management, and fought a proxy battle to