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Crypto mining firm Bitfarms signed its second hosting agreement with United States-based Stronghold Digital Mining to expand operations at its site in Pennsylvania.
Under the terms of the hosting agreement, the Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) data center operations firm will deploy an additional 10,000 miners to Stronghold’s Scrubgrass site. The mining hardware was initially expected to be used for its Yguazu site in <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-miner-hive-digital-expands-into-paraguay" rel="null" target="null" text="null" title="null">Paraguay</a>.
<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/riot-platforms-boosts-bitfarms-stake-with-2-28-m-share-acquisition" rel="null" target="null" text="null" title="null">Bitfarms</a>&nbsp;CEO Ben Gagnon said that optimizing company assets with these rapid upgrades at Stronghold’s Pennsylvania sites “will provide significant near-term value for Bitfarms.”
He said the combined 20,000 miners at the sites will boost efficiency and continue to improve the firm’s overall fleet efficiency.
“Vertically integrating our operations with Stronghold’s existing power generation infrastructure reduces capital expenditure requirements and allows us to take greater control over our cost of power,” he added.&nbsp;
This will be achieved through energy trading and better utilization of the wide range of operating modes of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitmain-linked-firm-denies-supplying-ai-chips-to-huawei" rel="null" target="null" text="null" title="null">Bitmain’s</a> T21 miners, he said.&nbsp;
<figure>
 <img alt="Mining" src="https://s3.cointelegraph.com/uploads/2024-11/0192e594-257b-7087-a6a1-f191fc2a78aa" title="">
 <figcaption style="text-align: center;">
 Stronghold Digital Mining site. Source: YouTube
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The initial terms of the agreement will expire on Dec. 31, 2025, after which it will automatically renew yearly. Additionally, Bitfarms will pay Stronghold 50% of the profit from the <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/mining-bitcoin-vs-validating-a-bitcoin-transaction" rel="null" target="null" text="null" title="null">miners</a> per month.
Bitfarms paid a refundable $7.8 million deposit to Stronghold to cover the estimated power costs for the first three months.
Bitmain entered into its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitfarms-accelerates-2-2-eh-s-deployment-with-stronghold" rel="null" target="null" text="null" title="null">first hosting agreement</a> with Stronghold in September for an initial 10,000 miners at its Panther Creek facility in Pennsylvania.&nbsp;
Gagnon said Bitfarms looked forward to “executing our strategy to increase our U.S. footprint and diversify beyond Bitcoin mining.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/riot-open-letter-bitfarms-board-changes" rel="null" target="null" text="null" title="null">Riot Platforms urges Bitfarms board changes ahead of crucial October meeting</a>
Bitfarms currently has 12 operating Bitcoin data centers and two under development. It also has hosting agreements with data centers in the United States, Canada, Paraguay and Argentina.
Its <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/how-to-mine-bitcoin-a-beginners-guide-to-mine-btc" rel="null" target="null" text="null" title="null">BTC mining</a> facilities are primarily powered by renewable hydroelectric power and sustainable long-term power contracts.&nbsp;
Despite the agreement, Bitfarms stock tanked 10% on the day, falling to $1.96 in after-hours trading, <a data-ct-non-breakable="null" href="https://www.google.com/finance/quote/BITF:NASDAQ" rel="null" target="null" text="null" title="null">according</a> to Google Finance. 
The slide mirrored broader market movements, with crypto markets retreating by 6% over the past 24 hours and related stocks following suit.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/off-the-grid-gunzilla-games-gaming-crypto-tokens-catizen-web3-gamer/" rel="null" target="null" text="null" title="null">Reward offered after Off The Grid is plagued by cheaters: Web3 Gamer</a>

Bitfarms inks 10,000 Bitcoin-miner hosting agreement with Stronghold

Cointelegraph

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