Bitfarms to Host Another 2.2 EH/s with Stronghold Amid Merger

Bitfarms (NASDAQ: BITF) is shifting the deployment of another 2.2 EH/s of Bitcoin hashrate to Pennsylvania as the construction at Yaguazu, Paraguay, appears to be delayed.

On Thursday, Bitfarms announced it would deploy an additional 10,000 T21 Antminers at Stronghold’s Scrubgrass site in Pennsylvania, with energization anticipated to begin in December. The miners were originally expected to be energized at the Yguazu site in Paraguay by year-end, Bitfarms added.

In September, Bitfarms entered its first hosting agreement with Stronghold as part of an ongoing transaction to acquire the Pennsylvania-based Bitcoin mining and power plant operator. Under the initial agreement, Bitfarms planned to energize 10,000 T21 Antminers, also totaling 2.2 EH/s, at Stronghold’s Panther Creek site in October.

As with the first hosting batch, Bitfarms prepaid Stronghold $7.8 million as a refundable hosting fee for the second batch to cover the initial three months, implying a cost of about $70/MWh.

Earlier this year, Bitfarms had planned to activate the 20,000 T21 Antminers by year-end at its expansion sites in South America. In July and August, Bitfarms reported that construction at Yaguazu was on schedule but did not provide an update in its September report.

Earlier this month, however, Bitfarms stated that its operating hashrate capacity was 11.3 EH/s and confirmed it remains “on track to achieve 21 EH/s in the coming months.”