Crypto mining firm Bitfarms has signed its second hosting agreement with United States-based Stronghold Digital Mining to expand operations at its site in Pennsylvania.
Under the terms of the hosting agreement, the Bitcoin (BTC) data center operations firm will deploy an additional 10,000 miners to Stronghold’s Scrubgrass site. The mining hardware was originally expected to be used for its Yguazu site in Paraguay.
Bitfarms CEO, Ben Gagnon, said that optimizing company assets with these rapid upgrades at Stronghold’s Pennsylvania sites “will provide significant near-term value for Bitfarms.”
He continued to state that the combined 20,000 miners at the sites will boost efficiency and continue to improve the firm’s overall fleet efficiency.
“Vertically integrating our operations with Stronghold’s existing power generation infrastructure reduces capital expenditure requirements and allows us to take greater control over our cost of power,” he added.
This will be achieved through energy trading and better utilization of the wide range of operating modes of Bitmain’s T21 miners, he said.
Stronghold Digital Mining site. Source: YouTube
The initial terms of the agreement will expire on Dec. 31, 2025, after which it will automatically renew yearly. Additionally, Bitfarms will pay Stronghold 50% of the profit from the miners per month.
Bitfarms paid a refundable $7.8 million deposit to Stronghold to cover the estimated power costs for the first three months.
Bitmain entered into its first hosting agreement with Stronghold in September when it added the initial 10,000 miners to its Panther Creek facility in Pennsylvania.
“We look forward to completing our acquisition of Stronghold and executing our strategy to increase our U.S. footprint and diversify beyond Bitcoin mining,” Gagnon added.
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Bitfarms currently has 12 operating Bitcoin data centers and two under development. It also has hosting agreements with data centers in the United States, Canada, Paraguay, and Argentina.
Its BTC mining facilities are primarily powered by renewable hydroelectric power and sustainable long-term power contracts.
Despite the agreement, Bitfarms stock (BITF) tanked 10% on the day, falling to $1.96 in after-hours trading, according to Google Finance. The slide mirrors broader market movements with crypto markets retreating by 6% over the past 24 hours and related stocks following suit.
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