Canadian Bitcoin Miner Bitfarms Signs Additional 10,000 Miners Hosting Agreement with Stronghold
Bitfarms has signed a second Bitcoin miners hosting agreement with Stronghold Digital Mining.
Based on the hosting agreement’s terms, Bitfarms will deploy an additional 10,000 Bitcoin miners to Stronghold’s mining site in Pennsylvania. This move aims to expand its operation in the region.
Bitfarms Adds More Mining Hardware to Expand Its Pennsylvania Operations
Canadian Bitcoin data center operation firm Bitfarms has signed another agreement to deploy 10,000 mining hardware to US-based BTC miner Stronghold. The company announced this in an October 31 press release.
According to the latest hosting agreement, Bitfarms will send the 10,000 mining hardware to Stronghold’s operations sites in Scrubgrass, Pennsylvania. The miners were initially meant for use in its mining facility in Yguazu, Paraguay.
In a statement, the CEO of Bitfarms, Ben Gagnon, said upgrading the firm’s assets with the new additions at Stronghold’s Scrubgrass site will yield significant near-term value.
He mentioned combining the 20,000 miners at the site will bolster efficiency and improve Bitfarms’ overall fleet capability.
The CEO explained that integrating Bitfarms’ operations with Stronghold’s power infrastructure will minimize capital expenditure requirements. This will allow the company to effectively manage its power cost.
He further revealed that Bitfarms plans to achieve this by trading energy and optimally utilizing the various operating modes of Bitman’s T21 miners.
Bitfarm’s Expansion Strides
Bitfarms announced its first hosting agreement with Stronghold on September 13. Based on the hosting deal, Bitfarms deployed 10,000 Bitmain T21 miners to Stronghold’s Panther Creek site.
Notably, these miners were originally scheduled to be deployed in December 2024 at its Yguazu, Paraguay site.
The Hosting agreement commenced on October 1 and is expected to expire on December 31, 2025. The contract will automatically renew after expiration for another year unless either party moves notices for non-renewal.
Bitfarms is expected to remit 50% of the monthly profit from the miners to Stronghold. Meanwhile, the company paid Stronghold a refundable deposit of $7.8 million to cover estimated power costs in the site’s first three months of operating.
Gagnon said the firm looks forward to acquiring Stronghold and strategically increasing its footprint in the United States. The CEO also mentioned that the firm plans to diversify its operations beyond BTC mining.
Bitfarms is keen to expand its operation across various regions. It operates 12 Bitcoin data centers, with two under development.
The company has also entered hosting agreements with other data centers in Canada, the United States, Argentina, and Paraguay. It primarily powers its Bitcoin mining facilities with sustainable long-term energy contracts and renewable hydroelectric power.
Despite its latest expansion strides, Bitfarms’ BITF stock plummeted 10% over the past day to hit $1.96 in after-hours trading. This decline aligns with broader market trends. Notably, the crypto market is down 6% in the last 24 hours, affecting crypto-related stocks.
