Should I buy Stronghold Digital Mining stock in 2025? NZ Analysis

What is Stronghold Digital Mining?

How much is the Stronghold Digital Mining stock?

The price of Stronghold Digital Mining stock is falling this week. The last available price before its acquisition by Bitfarms was $2.81 USD, showing a 24-hour change of 0% and a weekly decline of 31.46%. Market capitalisation closed at $48.45 million, with an average 3-month trading volume of 229,262 shares. No P/E ratio is reported due to ongoing losses, and the dividend yield remains at 0%. The stock’s beta stands at 3.02, highlighting extremely high volatility.

Important information

Please note: SDIG is no longer traded publicly, and its price history reflects an exceptionally volatile investment profile.

Our complete analysis of the Stronghold Digital Mining stock

Following our thorough review of Stronghold Digital Mining’s most recent financial disclosures, as well as its share price trajectory over the past three years, we have synthesized a wide range of analyses—incorporating financial ratios, technical signals, peer benchmarking, and proprietary quant-based insights—aimed at uncovering actionable investment intelligence. In light of Stronghold’s eventful year and its dynamic sector backdrop, the company’s swift evolution and strategic corporate actions provide rich material for consideration. So, why might Stronghold Digital Mining—or, more pertinently, its integration into Bitfarms—represent a fresh strategic entry point into the fast-evolving digital asset infrastructure sector in 2025?

Recent Performance and Market Context

Stronghold Digital Mining’s share price journey has been marked by pronounced volatility and swift shifts in sentiment, reflective both of the company’s operational profile and broader structural changes in the cryptocurrency mining arena. Prior to its acquisition, SDIG’s closing share price stood at $2.81, positioning it within a 52-week trading range of $1.65 to $6.70. Over the trailing twelve months—up to its March 2025 delisting—the stock experienced a drawdown of 31.46%. While headline figures might suggest a challenging period, this context belies a series of pivotal milestones.

Most significant among these was the acquisition by Bitfarms Ltd., completed in March 2025. The transaction—structured as an all-stock merger with a 2.52-for-1 share exchange—was not only unanimously approved but also strategically leveraged Bitfarms’ global scale with Stronghold’s distinctly American operational base and proprietary power assets. The evolving regulatory landscape, increased institutional participation in digital assets, and continued infrastructure demand underpinned a positive macroeconomic backdrop, further supporting the rationale behind this consolidation.

Importantly, the broader North American Bitcoin mining landscape remains fundamentally sound. Recent recoveries in digital asset prices, increasing momentum toward energy efficiency in mining, and renewed investor interest in regulated, vertically integrated operators have all contributed to an auspicious sector context. Within this framework, the absorption of Stronghold positions the combined entity at the vanguard of sustainable digital asset production, with an increasingly attractive risk/reward profile for forward-focused investors—particularly those seeking innovation-led growth in a high-beta technology segment.

Technical Analysis

The technical landscape for SDIG in its final phase as a standalone entity displayed a nuanced structure, indicative of a stock nearing a potential inflection point. Ahead of its merger, several significant indicators provide insight:

• Relative Strength Index (RSI, 14-day): At 42.8, the RSI suggested a market approaching—yet not fully reaching—oversold territory. This is typically interpreted as a technical reset, where sellers are exhausting momentum and buyers may find renewed conviction.
• Moving Averages: The 50-day and 200-day moving averages, at $3.38 and $4.05 respectively, highlight a market that had undergone a pronounced correction, with the price consolidating below these longer-term trend levels. Historically, this setup has presaged strong reversals when a fundamental trigger—such as a merger—emerges.
• Support and Resistance: Key technical levels were observed at an established support of $4.16 and resistance at $6.70. The final trading price, well under both, implied pent-up upside potential should catalysts materialise, and reflected the market’s wait-and-see posture preceding the Bitfarms deal.

Furthermore, average daily trading volume of over 229,000 shares in the stock’s final phase reinforced the notion of persistent market interest, and underscored the technical resilience that often precedes shifts in sector leadership—particularly when institutional players are actively involved.

Fundamental Analysis

Stronghold’s fundamental profile was a tale of both bold innovation and near-term financial headwinds—yet, in the context of its absorption into a larger, financially robust acquirer, these factors collectively build a compelling case for renewed optimism.

• Revenue & Profitability: Q3 2024 revenue approached $11.2 million, predominantly from Bitcoin mining ($10.6 million). While the top line registered annual and sequential declines—due in part to the April 2024 Bitcoin “halving” and volatile network fees—the company’s cost structure and negative EBITDA (-$5.5 million in Q3) can be viewed through the lens of sector-wide cyclical compression, rather than firm-specific failure.
• Valuation Metrics: With the company operating at a loss, classic P/E and PEG ratios were not applicable. However, valuation on a per-asset and per-capacity basis remains competitive, particularly when accounting for:
• Ownership of low-cost, waste-coal power plants in Pennsylvania.
• A unique business model integrating energy production and mining, lowering marginal BTC production costs and differentiating from peers reliant on third-party power.
• Structural Strengths: Strategic partnerships—primarily with Bitfarms—enabled optimization of operational sites, notably Panther Creek and Scrubgrass. Stronghold’s environmentally conscious approach, repurposing waste coal, offered an ESG-aligned value proposition increasingly sought by institutional allocators.

In aggregation, while the short-run income statement may have flagged conventional risks, the underlying asset quality and innovative integration set a robust base for recovery and sector leadership under Bitfarms’ stewardship.

Volume and Liquidity

During its last month of trading, SDIG averaged over 229,000 shares per day—a testament to persistent market engagement even as the acquisition narrative intensified. This level of volume historically denotes market confidence in price discovery and a willingness of both retail and institutional capital to maintain exposure up to—and through—transformational events.

Additionally, approximately 53.34% of the float was institutionally held, with management retaining 6.22%. Such concentration often signals validation by professional investors—critical in a sector reliant on vision, execution, and operational transparency. The final pre-merger liquidity profile, therefore, should be interpreted as a favorable precursor to sustained interest in the combined Bitfarms-Stronghold entity, with dynamic valuation opportunities arising as integration unlocks potential synergies.

Catalysts and Positive Outlook

The acquisition by Bitfarms represents more than just headline consolidation; it’s a strategic alignment that unlocks multiple value-creating catalysts:

• Integration into a Giga-Watt Scale Platform: The combined company now accesses a 1.1 gigawatt growth pipeline, dramatically enhancing scalability.
• Operational Synergies: Bitfarms’ global reach, robust balance sheet, and diversified mining fleet offer immediate benefits—optimizing capacity at both acquired and legacy Stronghold sites.
• US Market Expansion: With Stronghold’s deep roots in Pennsylvania and unique energy assets, the enlarged group cements its geographic and regulatory presence in the high-opportunity US market, where demand for transparent, sustainable mining grows unabated.
• Next-Generation Hosting Partnerships: The addition of multiple Bitmain T21 miner deployments, accompanied by $7.8 million secured deposits for each hosting agreement, signals robust forward business and strengthens recurring cash flow streams.
• ESG Credentials: By operating “environmentally beneficial” facilities that consume legacy waste coal and reduce environmental liabilities, the group is well-positioned to capitalise on the growing allocation of ESG-driven investment capital, especially among institutional allocators keen to support real-world decarbonisation.

In summary, the merger acts as both a sector consolidator and a growth lever, with these strategic advantages underpinning a positive medium- and long-term outlook in an increasingly competitive environment.

Investment Strategies

From an investment strategy perspective—whether considering entry at technical lows or positioning ahead of structural catalysts—the integration of Stronghold into Bitfarms offers several compelling scenarios:

• Short-Term: The closure of the merger and news flow around post-deal execution typically drive heightened volume, offering trading opportunities for momentum-focused investors. For those previously holding SDIG, the conversion to Bitfarms shares allows continued exposure through an immediately liquid, larger-cap vehicle.
• Medium-Term: As Bitfarms brings its operational playbook to bear on Stronghold’s core assets, near-term performance can be expected to benefit from improved efficiency, cost rationalisation, and better capital allocation—potentially catalysing upward re-rating in the combined equity.
• Long-Term: Steady effects from completed integration, scalable growth pipelines, and exposure to the secular rise of institutional Bitcoin adoption underwrite a strong case for holding through multiple cycles. Further, as regulatory clarity increases and the digital asset mining industry matures, companies with multi-jurisdictional, ESG-compliant platforms may see sustained valuation appreciation.

For New Zealand-based investors and others in APAC, the ability to capture US tech and crypto-infrastructure upside within a regulated, liquid, and future-focused merged entity such as Bitfarms is particularly noteworthy—especially given the scarcity of comparable vehicles in local and regional markets.

Is it the Right Time to Buy Stronghold Digital Mining?

Synthesizing the data and strategic context, several strengths stand out:

• Superlative Asset Base: Proprietary energy infrastructure, in-demand hosting capability, prime US-based locations.
• Favorable Structural Changes: Merger with Bitfarms unlocks substantial economies of scale and operational synergies.
• Resilient Market Interest: Substantial institutional holding and persistent trading liquidity point to robust underlying demand.
• ESG-Driven Innovation: Strong ESG credentials at a time when institutional capital is actively seeking alignment with sustainable energy and digital transformation.
• Compelling Catalysts: Ongoing integration milestones, capacity expansions, and anticipated regulatory tailwinds are set to reinforce the positive thesis.

While the original SDIG shares are no longer available for public purchase, former holders now participate in these bullish themes via Bitfarms, with the underlying assets and skilled management team continuing to drive value creation. For those seeking strategic exposure in the rapidly evolving digital infrastructure and Bitcoin mining space, the timing appears propitious to consider the combined entity as a strong candidate for portfolio inclusion.

In conclusion, the transformation of Stronghold Digital Mining—via its acquisition and integration into Bitfarms—highlights the emergence of a new US-based leader in energy-efficient crypto mining, combining technology innovation with ESG purpose and scale. The constellation of strategic, technical, and market signals all point to an environment rich with opportunity for prudent, forward-looking investors prepared to benefit from this sector’s next expansionary cycle.

How to buy Stronghold Digital Mining stock in New Zealand?

Buying shares in Stronghold Digital Mining online is straightforward and highly secure when you use a regulated brokerage platform. Whether you’re looking for long-term investment or active trading, you have two main ways to gain exposure: direct (spot) share purchasing or Contracts for Difference (CFDs), which allow you to trade on price movements with or without physical ownership. Both methods can be accessed online, often through platforms tailored to New Zealand investors, with robust protection for your funds. To find your ideal platform, check our detailed broker comparison further down this page.

Spot Buying

A spot, or cash, purchase of Stronghold Digital Mining shares means you buy real company stock, typically through an online broker. Fees for this method are transparent: most NZ-friendly brokers charge a fixed commission per trade, often around NZD $5–$10, plus the actual market price of the share (in USD, for US stocks).

Example

If the Stronghold Digital Mining share price is USD $2.81 (approx. NZD $4.60), your NZD $1,000 (about USD $610) allows you to buy around 217 shares. After including a NZD $5 brokerage fee, you control about NZD $995 worth of shares.

Gain Scenario: If the share price rises by 10% (to about USD $3.09/NZD $5.06), your shares’ value increases to approx. NZD $1,100.

Result: +NZD $100 gross gain, or +10% return on your investment (excluding FX effects).

Trading via CFD

CFDs (Contracts for Difference) enable you to trade on the price movements of Stronghold Digital Mining shares without owning the actual stock. You can open positions with leverage (for example: 5x), so your exposure is much greater than your capital outlay; however, you pay a spread (difference between buy and sell prices) and overnight financing if you keep positions open.

Example

You open a CFD position with NZD $1,000 at 5x leverage, giving you NZD $5,000 exposure to Stronghold shares.

Gain Scenario: If the stock price climbs by 8%, your position profits by 8% × 5 = 40%.

Result: +NZD $400 gain, on a NZD $1,000 trade (excluding spreads and overnight fees).

Final Advice

Always compare brokers’ fees, available features, and regulation before investing—costs can vary widely, especially for US-listed shares or leveraged CFD products. Finally, your choice depends on your risk tolerance and investment goals: spot buying is best for long-term wealth-builders, while CFDs suit active traders seeking short-term opportunities. For further help, see our comprehensive NZ broker comparator below.

Our 7 tips for buying Stronghold Digital Mining stock

The latest news about Stronghold Digital Mining

Stronghold Digital Mining has completed its strategic acquisition by Bitfarms, leading to SDIG’s delisting on 14 March 2025. This acquisition, effected through a share exchange at a ratio of 2.52 Bitfarms shares for each Stronghold share, has been unanimously approved by both companies’ boards and marks a significant consolidation move within the North American digital asset mining sector. Notably, the Bitfarms platform—listed on the Nasdaq and TSX—maintains a global shareholder base, including New Zealand exposure via international brokers and funds that track large crypto and digital mining indices, making this event directly relevant to NZ-based investors with legacy SDIG holdings, or those following sectoral ETFs.

Post-merger, former Stronghold shareholders have received direct equity in Bitfarms, a larger and more diversified crypto mining entity. This transition is especially constructive for New Zealand investors, as Bitfarms offers a higher degree of liquidity, North American and Latin American operational diversification, and extensive institutional research coverage. The ability to trade Bitfarms shares on major markets, subject to KiwiSaver and international brokerage access, enables a new channel for NZ participants interested in the digital mining sector, superseding exposure previously held in SDIG stock.

Bitfarms’ integration of Stronghold’s vertically integrated US mining sites is expected to improve operational synergies and growth prospects. The acquisition brings Stronghold’s proprietary low-cost coal refuse power generation assets in Pennsylvania under Bitfarms management, significantly increasing access to up to 1.1 gigawatts of growth pipeline in North America. For regional analysts, this expansion enhances the post-merger entity's resilience and competitiveness, particularly against new Bitcoin mining economics post-halving, and bodes well for future partnerships, including hosting institutional hardware for third parties, which could attract further international interest including from New Zealand funds with ESG mandates.

Recent hosting agreements with Bitfarms have secured substantial deposits and additional miner deployments, signaling robust operational scaling. Over the past week, Bitfarms finalized hosting contracts for two Pennsylvania facilities, receiving $7.8 million deposits per site for accommodating a total of 20,000 Bitmain T21 miners. This rapid scaling and upfront cash injection may help stabilize financials and improves forward visibility, a positive market signal relevant for institutions tracking digital infrastructure themes in diversified portfolios, a sector increasingly followed by New Zealand asset managers and index providers.

Despite short-term financial and sector-specific headwinds, the integrated Bitfarms-Stronghold entity is positioned for enhanced sustainability and investor visibility. Although both entities faced recent Bitcoin pricing volatility and sector-wide margin compression, the newly expanded Bitfarms stands to benefit from operational efficiencies, scale advantages, and increased ESG-oriented mining through environmental remediation of coal refuse. These attributes align with preferences of many institutional New Zealand investors and funds focusing on sustainability, innovation, and digital infrastructure. The transparency and regulatory framework of the merged company’s dual listing also ensure ongoing accessibility and disclosures for NZ-based financial professionals.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.