Crypto-mining Firm Bitfarms Announces Consolidation of 100% Ownership of Operating Entity “Backbone”

Crypto-mining company Bitfarms (formerly Blockchain Mining) announced on Tuesday it has reached an agreement to acquire 100% beneficial ownership of its operating entity, Backbone Hosting Solutions Inc. Bitfarms reported it will acquire an aggregate of 26,295,655 class A voting common shares of Backbone (purchase shares) being the remaining 39.3% of the issued and outstanding shares of Backbone not already owned by Bitfarms. As of the date hereof, Bitfarms, directly or indirectly, owns an aggregate of 60.7% of the issued and outstanding shares of Backbone.

“As consideration for the Purchased Shares, Bitfarms will issue one common share in exchange for each Purchased Share, for an aggregate of 26,295,655 newly issued shares of Bitfarms. The transaction has received conditional listing approval from the TSX Venture Exchange (TSXV), however, the acquisition of the Purchased Shares is subject to certain customary conditions, including meeting the final listing conditions of the TSXV. Bitfarms expects to close the acquisition of the Purchased Shares on or about August 15, 2019.”

Speaking about the acquisition, Wes Fulford, CEO of Bitfarms, added:

“We are pleased to announce the consolidation of the remaining ownership in Backbone. This transaction will result in a simplified capital structure, consolidating 100% ownership of cash flow from operations from subsidiaries of the Company into Bitfarms. We believe the transaction is accretive to all shareholders of the Company and investors will benefit from the increased public float.”