Canada-based Bitcoin miner Bitfarms has strengthened its U.S. operations by signing a second hosting agreement with Stronghold Digital Mining.
Under this new agreement, Bitfarms will deploy 10,000 miners at Stronghold’s Scrubgrass facility in Pennsylvania, with activation expected by December.
Originally intended for Bitfarms’ site in Yguazú, Paraguay, the decision will instead contribute to Bitfarms’ strategy to increase its presence in the U.S.
Bitfarms Expands U.S. Operations with New Hosting Deal
The company has a larger plan to deploy 20,000 miners across Stronghold’s Pennsylvania sites, supported by two hosting agreements. Bitfarms CEO Ben Gagnon expressed optimism about the arrangement, citing improved operational efficiency and reduced costs.
“The 20,000 miners we are deploying at the two sites…will boast an efficiency of ~20.5 w/TH, continuing to improve our overall fleet efficiency,” said Gagnon. By integrating its operations with Stronghold’s energy infrastructure, Bitfarms aims to reduce capital expenses and gain more control over its power costs through energy trading options and better utilization of its T21 machines.
Bitfarms made an initial deposit of $7.8 million with Stronghold, covering the estimated power costs for three months of operations. This amount will be fully refundable at the end of the initial term, which concludes on December 31, 2025.
The agreement is set to automatically renew each year unless one of the parties opts out. As part of the deal, Bitfarms will pay Stronghold a monthly fee equal to 50% of the profits generated by the deployed miners.
Bitfarms Mining Journey So Far and Profits
Bitfarms has been actively expanding its operations, now managing 12 Bitcoin data centres worldwide with two more in development. The company has hosting agreements not only in the U.S. but also in Canada, Paraguay, and Argentina.
Known for its commitment to sustainability, Bitfarms primarily powers its mining facilities with renewable hydroelectric energy and long-term sustainable power contracts.
Despite this strategic agreement, Bitfarms’ stock dropped by 10%, reaching $1.96 in after-hours trading, reflecting a broader decline in the cryptocurrency market. Over the past 24 hours, crypto markets retreated by approximately 6%, impacting stocks related to the industry.
Bitfarms’ drop was in line with this trend, though the company remains optimistic about its long-term strategy to diversify operations and establish a strong foothold in the U.S.
With the upcoming activation of the new miners, Bitfarms is focused on optimizing its assets in Pennsylvania. The new deployment will contribute to its broader goal of enhancing efficiency and reducing costs, critical in the competitive and energy-intensive Bitcoin mining industry.