- Bitfarms Deploys 10,000 Miners At Stronghold’s Scrubgrass, Pennsylvania, Aiming To Optimize Mining Efficiency And Reduce Energy Costs.
- New Hosting Agreement Allows Bitfarms To Share 50% Mining Profits With Stronghold, Enhancing Operational Stability Through 2025.
Bitfarms Ltd., a leader in the Bitcoin mining industry, has expanded its operations by deploying an additional 10,000 miners at Stronghold Digital Mining’s Scrubgrass facility in Pennsylvania.
This initiative shifts from their initial plans in Paraguay and is set to commence in December 2024. The miners aim to enhance Bitfarms’ mining efficiency and solidify its position in the cryptocurrency mining market.
Ben Gagnon, CEO of Bitfarms, stated that optimizing asset performance through these upgrades at Stronghold’s Pennsylvania locations is expected to generate significant value for the company.
“Optimizing our assets with these rapid upgrades at Stronghold’s Pennsylvania sites will provide significant near-term value for Bitfarms.”
The partnership allows Bitfarms to directly integrate its mining operations with Stronghold’s energy production capabilities. Consequently, this reduces the need for extensive capital investments and gives Bitfarms more control over its energy expenditures.
Under the terms of the agreement, which extends until December 31, 2025, with provisions for annual renewal, Bitfarms will share 50% of its mining profits with Stronghold. Bitfarms has also advanced $7.8 million to cover estimated power costs for the first three months, with arrangements for a full refund by the term’s end, ensuring financial predictability and operational stability.
“We look forward to completing our acquisition of Stronghold and executing our strategy to increase our U.S. footprint and diversify beyond Bitcoin mining.”
Despite these strategic enhancements, Bitfarms has faced challenges due to broader market conditions. In 2024, the company’s Bitcoin production decreased significantly, with only 1,557 BTC mined compared to 2,520 BTC in the previous year. The decline reflects reduced productivity and lower rewards per miner, which are common challenges in the cryptocurrency mining industry today.
The partnership and the strategic deployment of new miners are anticipated to bolster Bitfarms’ operational flexibility. This flexibility will allow the company to adjust its mining activities based on current energy market conditions to optimize profitability.
Furthermore, market data from IntoTheBlock indicates that Bitcoin mining rewards increased from June to October, suggesting a potential improvement in the sector. Despite the market’s volatility, Bitfarms’ stock experienced a 10% decline in after-hours trading to $1.96, reflecting the ongoing market pressures.
This fluctuation coincides with a 2.61% decrease in Bitcoin’s value, with the cryptocurrency trading at $70,140.91 at the time of reporting.
Bitfarms’ strategic initiatives and its partnership with Stronghold aim to enhance the company’s mining capabilities and operational efficiency.
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