Bitfarms has partnered with Stronghold Digital Mining Hosting to deploy 10,000 miners at its Pennsylvania site, aiming to improve efficiency and expand its U.S. operations.
Bitfarms, Stronghold Digital Mining to Deploy 10,000 Miners in Pennsylvania
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Improved Efficiency
Canada-based bitcoin miner Bitfarms has entered into a second miner hosting agreement with Stronghold Digital Mining Hosting. Bitfarms will deploy 10,000 miners at Stronghold’s Scrubgrass site. The miners, originally intended for Bitfarms’ site in Yguazú, Paraguay, are set to be energized in December.
According to a press release, Bitfarms’ deployment of upgraded miners at Stronghold’s Pennsylvania sites will provide significant near-term value for the company. Ben Gagnon, CEO of Bitfarms, expressed optimism about the plan, saying it would greatly improve the company’s efficiency.
“The 20,000 miners we are deploying at the two sites between the two hosting agreements will boast efficiency of ~20.5 w/TH, continuing to improve our 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 via energy trading and better utilization of the T21’s wide range of operating modes,” Gagnon said.
The CEO added that his firm is looking forward to closing its acquisition of Stronghold and proceeding with plans to expand Bitfarms’ footprint in the U.S.
The hosting agreement, signed between subsidiaries of Bitfarms and Stronghold Digital Mining, will expire on Dec. 31, 2025. Additional one-year terms will be added unless either party provides written notice of non-renewal.
Bitfarms will pay Stronghold a monthly fee equal to 50% of the profit generated by its miners. To execute the agreement, Bitfarms deposited $7.8 million with Stronghold to cover three months of energy costs for its miners. The deposit will be fully refunded at the end of the initial term.
