Bitfarms and Stronghold Digital entered a second agreement for deploying 10,000 more mining systems.
Bitcoin miner firm Bitfarms inks another deal with Stronghold Digital to bring 10,000 additional mining rigs to the latter’s Pennsylvania site. This is the second such deal between the parties, with the first one already bringing 10,000 rigs to Stronghold’s Panther Creek site in Pennsylvania. While the current agreement will also see the hosting arrangement deployed in Pennsylvania, it will occur at another site—Scrubgrass.
The mining systems in both deals were expected to be hosted in Yguazu, Paraguay, in December 2024. However, the parties have decided to deploy the machines in the United States, where Stronghold is based. Bitfarms, on the other hand, is a Canada-based mining firm.
“Optimizing our assets with these rapid upgrades at Stronghold’s Pennsylvania sites will provide significant near-term value for Bitfarms,” said Bitfarms CEO Ben Gagnon. “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.”
The Agreement Engenders Reduced Operational Costs for Bitfarms
Gagnon also mentioned how this arrangement is more beneficial as it reduces Bitfarms’ capital expenditure. The vertical integration into Stronghold’s existing power generation capabilities will allow Bitfarms’ to take greater control over power-related costs by “energy trading and better utilization of the T21’s wide range of operating modes.”
Bitfarms also entered into an acquisition deal with Stronghold this year, buying the US-based miner for $125 million. The deal marks Bitfarms’ entry into the US and expands its foothold in the country. This will allow it to increase its mining activity while diversifying its income sources by offering services for artificial intelligence (AI) and high-performance computing (HPC) use cases. Bitcoin miners have been venturing into new industries due to declining block rewards, which was especially felt after this year’s Bitcoin halving event.
The recent agreement between Bitfarms and Stronghold will expire on December 25, 2025, with an automatic renewal clause kicking in every year until either party wants to exit the agreement. Bitfarms has also deposited $7.8 million with Stronghold to cover operating expenses for the first three months. That deposit is refundable–Stronghold is expected to repay when the initial term ends in 2025.
Bitfarms operates its mining activities using sustainable energy, including hydroelectricity and long-term power contracts. It operates in multiple countries, including Canada, US, Paraguay, and Argentina.
