Bitfarms Will Add 2.2 EH/s of Power to Stronghold Digital’s Facility in October

Bitfarms will add 10,000 Bitmain T21 miners to a Stronghold Digital facility to increase computing power and diversify its operations.

Bitcoin mining firms Bitfarms and Stronghold Digital have entered an agreement, which will see the former add 10,000 Bitmain T21 miners to the latter’s Panther Creek site in Pennsylvania. This move, slated for October 1, will add 2.2 Exahashes per second (EH/s) of power to Bitfarms’ mining operations. The hardware systems were slated to be deployed in Yguazu, Paraguay, two months later in December 2024.

The Agreement Will Help Bitfarms Expand Beyond Bitcoin Mining

Bitfarms’ CEO Ben Gagnon spoke about how this decision would help the company get ahead of rising power costs and diversify operations as mining rewards declined in April. “The opportunity to vertically integrate our operations with Stronghold’s existing power generation infrastructure provides a robust pathway to continued, profitable growth.” He continued, “Stronghold’s Pennsylvania sites have substantial multi-year expansion potential and provide access to energy trading opportunities, competitive power costs, and HPC/AI.”

Bitfarms previously announced that it had entered a deal to acquire Stronghold, which will be completed next year. Touching the subject, Gagnon said, “We look forward to completing our acquisition of Stronghold and accelerating our strategy to diversify beyond Bitcoin mining to create greater long-term shareholder value.”

The agreement will start on October 1 and end on December 31, 2025, automatically renewing for a year unless either of the parties wants to terminate it. The agreement will witness Bitfarms paying 50% of the monthly profits it generates from the mining systems installed in the Panther Creek site as fees to Stronghold every month. Furthermore, Bitfarms deposited $7.8 million with Stronghold—equalling three months of power costs for operating the Bitfarms’ mining rigs. The amount “will be refundable in full to Bitfarms within one business day of the end of the initial term expiring on December 31, 2025.”