Originally published on: September 14, 2024
In a significant move, Bitfarms, a leading mining company, has announced a strategic hosting agreement with Stronghold Digital Mining. This partnership will bring an additional 2.2 exhashes per second (EH/s) of computing power online by October 2024, ahead of the initial schedule by two months.
Expanding Operations with Bitmain T21 Miners
The hosting agreement will see 10,000 Bitmain T21 miners added to Bitfarms’ Panther Creek facility located in Pennsylvania, with operations set to kick off on October 1. Ben Gagnon, CEO of Bitfarms, emphasized the vast potential of the company’s Pennsylvania sites in diversifying its business operations.
Profit-Sharing Model and Renewal Terms
Under the agreement, Bitfarms will pay Stronghold a fee equal to 50% of the profits generated from the hosting deal, with annual renewal options in place for both parties. This collaboration marks a significant milestone in Bitfarms’ strategic growth and operational efficiency.
Addressing Shareholder Concerns and Future Outlook
Bitfarms recently rescheduled its special shareholders meeting to address concerns raised by Riot Platforms, its largest shareholder. Riot Platforms had expressed reservations regarding Bitfarms’ corporate governance and the acquisition of Stronghold, citing potential dilution of shareholder value and governance issues.
In response, Bitfarms defended its acquisition as a strategic move to bolster its US-based operations and rebalance its energy portfolio. The company reiterated its commitment to shareholder interests and operational excellence amid evolving market dynamics.
Promising Growth Amid Industry Challenges
As Bitfarms forges ahead with accelerated growth initiatives and strategic partnerships, the mining industry faces challenges such as electricity thefts and exchange scams. By aligning with Stronghold Digital Mining and enhancing its operational capacity, Bitfarms is positioning itself for sustained success in a competitive market landscape.
For more industry insights and updates, check out Asia Express’s coverage on Bitcoin miners and the evolving cryptocurrency ecosystem. Stay tuned for the latest developments in the digital asset space.
