Bitfarms to Fast-Track 2.2 EH/s Deployment via Stronghold Merger

Bitfarms is set to activate 2.2 EH/s worth of bitcoin miners in Pennsylvania next month, accelerating a hashrate deployment initially scheduled for December in Yguazu, Paraguay.

The company announced on Thursday that it has entered into a profit-sharing hosting agreement with Stronghold Digital amidst their ongoing all-stock merger transaction.

Under this agreement, Stronghold will colocate 10,000 T21 Antminer units at its Panther Creek site in Pennsylvania. Bitfarms had initially planned to activate the T21s at one of its expansion sites in South America by year-end.

Starting in October, Bitfarms will share half of the mining profits with Stronghold as a monthly fee under the hosting agreement. Bitfarms has deposited $7.8 million with Stronghold as a refundable fee to cover the estimated power cost for the initial three months of operating the T21s.

That expenditure, according to the agreement, equates to $70 per megawatt-hour, multiplied by 50 megawatts, 24 hours, and 93 days

As previously reported, Bitfarms is acquiring Stronghold in an all-stock merger valued at $175 million, including the assumption of Stronghold’s outstanding debts. This deal forms part of Bitfarms’ strategy to scale up its hashrate and power capacity through immediate access, complementing its infrastructure expansion in South America.

To accommodate Bitfarms’ needs, Stronghold will likely de-rack a portion of its proprietary miners. As of Aug. 9, Stronghold had a proprietary mining fleet of 30,000 miners totaling 3.1 EH/s, consisting mostly of older generation models from the previous halving cycle.