Vanessa
Bitfarms, the global cryptocurrency mining company, announced a new hosting agreement with Stronghold Digital Mining Hosting to deploy an additional 10,000 miners at thе latter’s Scrubgrass site in Pennsylvania.
The expansion is part of its strategy to increase its U.S. footprint and is anticipated to begin in December 2024.
The 10,000 miners were initiallу intended for Bitfarms’ Yguazu site in Paraguay but will now operate alongside 10,000 other miners Bitfarms is deploying under its initial agreement with Stronghold. This deployment will achieve an efficiency of approximately 20.5 watts per terahash (w/TH), enhancing Bitfarms’ fleet-wide performance.
Bitfarms Chief Executive Officer Ben Gagnon emphasized the value of the partnership: “Optimizing our assets with these rapid upgrades at Stronghold’s Pennsylvania sites will provide significant near-term value for Bitfarms.”
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The Scrubgrass site’s existing power generation capabilities allow Bitfarms to minimize capital expenditures and leverage a diversified energy strategy.
Bitfarms also deposited $7.8 million with Stronghold to cover estimated power costs for three months, which is fully refundable at the end of the agreement’s initial term on December 31, 2025. The contract will automatically renew for successive one-year terms unless either party opts out in writing.
The company operates 12 Bitcoin data centers, primarily powered by hydroelectric energy, with locations in the U.S., Canada, Paraguay, and Argentina. Through partnerships like the one with Stronghold, Bitfarms is advancing its commitment to cost-efficient, sustainable crypto mining and exploring growth in the U.S. market.
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In April this year, U.S. President Joe Biden proposed a 30% tax on electricity used by crypto miners in a bid to encourage miners to adopt more eco-friendly practices. This issue remains unresolved as of this writing after the proposal received backlash from the crypto community who argued that it could impact industry competitiveness and later drive the industry offshore.
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