Bitfarms, a Bitcoin mining company, has secured a second hosting agreement with Stronghold Digital Mining to enhance its operations in Pennsylvania. This agreement allows Bitfarms to deploy an additional 10,000 miners at Stronghold’s Scrubgrass facility, building on a previous arrangement that involved 10,000 miners at another site.
The decision to expand operations at Stronghold’s facilities is a strategic move for Bitfarms, aimed at optimizing its assets and boosting overall fleet efficiency. The synergy of combining 20,000 miners across these Pennsylvania sites is anticipated to yield substantial short-term benefits for the company. By vertically integrating operations with Stronghold’s power generation capabilities, Bitfarms aims to reduce capital expenditure and secure a more favorable position regarding energy costs.
Under the agreement, which is set to last initially until December 31, 2025, with automatic annual renewals, Bitfarms will share 50% of the monthly profits generated by the miners with Stronghold. Furthermore, the company has made a refundable deposit of $7.8 million to cover projected power costs for the initial three months of operation.
Prior to this latest agreement, Bitfarms had already established a partnership with Stronghold in September, marking a significant expansion in its U.S. presence. The company aims to diversify its operations beyond Bitcoin mining and enhance its footprint in the American market.
At present, Bitfarms operates 12 Bitcoin data centers, with two additional facilities in development. It holds hosting agreements with data centers in various countries, including the United States, Canada, Paraguay, and Argentina, primarily relying on renewable hydroelectric power and sustainable long-term energy contracts for its mining activities.
Despite the promising developments, Bitfarms faced a 10% decline in its stock value, falling to $1.96 in after-hours trading. This drop reflects a broader trend in the cryptocurrency market, which has recently experienced a 6% retreat.
