Bitfarms Expands Miner Hosting with Stronghold Digital Mining
Caroline Bishop Oct 31, 2024 23:45
Bitfarms Ltd. signs a second 10,000 miner hosting agreement with Stronghold Digital Mining, enhancing operations at Stronghold's Scrubgrass site in Pennsylvania. The move aims to boost efficiency and expand U.S. presence.
Bitfarms Ltd. (NASDAQ/TSX: BITF), a prominent Bitcoin data center operator, has announced a new hosting agreement with Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc. (NASDAQ: SDIG). This marks the second such agreement between the two companies, according to GlobeNewswire.
Expansion at Scrubgrass Site
The agreement allows Bitfarms to deploy an additional 10,000 miners at Stronghold’s Scrubgrass site in Pennsylvania. These miners were initially planned for Bitfarms’ Yguazu site in Paraguay. Energization at the Scrubgrass site is expected to begin in December 2024, enhancing Bitfarms' operational capacity by supporting an additional 2.2 EH/s (Exahash per second).
Strategic Benefits
Ben Gagnon, CEO of Bitfarms, emphasized the strategic benefits of the agreement, highlighting the improved efficiency of ~20.5 watts per terahash (w/TH) across their miner fleet. The collaboration leverages Stronghold’s power generation facilities, reducing capital expenditures and enabling better energy cost management through energy trading.
Terms of the Agreement
The initial term of the hosting agreement will expire on December 31, 2025, with automatic renewals unless terminated by either party. Bitfarms will pay Stronghold a monthly fee equal to 50% of the profit generated by the miners. Additionally, Bitfarms has deposited $7.8 million with Stronghold, covering the estimated power costs for three months, refundable at the term’s end.
Bitfarms’ Growth and Sustainability
Founded in 2017, Bitfarms operates 12 Bitcoin data centers with two more under development. The company is committed to sustainable energy solutions, predominantly using hydro-electric power and long-term contracts. Bitfarms’ expansion into the U.S. market is part of its strategy to diversify operations beyond Bitcoin mining.
Future Prospects
This agreement aligns with Bitfarms’ strategy to increase its presence in the U.S. and enhance its operational footprint. The company is also preparing for a proposed merger with Stronghold, aiming to further its geographical diversification and expand its mining capabilities.
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