- Bitfarms (TSX:BITF) has entered into a miner hosting agreement with Stronghold Digital Mining LLC, a subsidiary of Stronghold Digital Mining (NDAQ:SDIG)
- Through the agreement, Bitfarms will accelerate the deployment of 10,000 Bitmain T21 miners scheduled to come online in October
- The move is expected to increase the company’s mining capacity to 2.2 exahash per second (EH/s)
- Shares of Bitfarms are up 1.45 per cent to C$2.80 as of 1:28 pm ET
Bitfarms (TSX:BITF) has entered into a miner hosting agreement with Stronghold Digital Mining LLC, a subsidiary of Stronghold Digital Mining (NDAQ:SDIG).
In a news release the company stated that through the agreement, Bitfarms will accelerate the deployment of 10,000 Bitmain T21 miners scheduled to come online in October and two months ahead of schedule.
Thanks to the agreement, the move is expected to increase the company’s mining capacity to 2.2 exahash per second (EH/s).
“This hosting agreement represents an important milestone in our efforts to further optimize our assets and take greater control over our top cost element, the cost of power,” Ben Gagnon, CEO of Bitfarms, said in a statement. “The opportunity to vertically integrate our operations with Stronghold’s existing power generation infrastructure provides a robust pathway to continued, profitable growth.
The hosting agreement is slated to begin Oct. 1 and will expire on Dec. 31, 2025, with an automatic renewal for additional one-year periods unless either party decides otherwise.
Bitfarms will pay to Stronghold a monthly fee equivalent to 50 per cent of the profits generated by Bitfarms’ miners, subject to monthly adjustments to account for the upfront monthly payment from Bitfarms to Stronghold in the amount of $210,000.
In tandem with executing the agreement, Bitfarms also deposited $7.8 million with Stronghold, which is equal to the estimated cost of power for three months of operations of the miners. The deposit will be refundable to Bitfarms upon the end of the initial term expiring at the end of 2025.
Founded in 2017, Bitfarms is a global, vertically integrated Bitcoin data centre company that develops, owns, and operates vertically integrated mining facilities with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centres.
Shares of Bitfarms Ltd. (TSX:BITF) are up 1.45 per cent to C$2.80 as of 1:28 pm ET.
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