As an experienced analyst who has closely followed the crypto mining landscape for years, I find this strategic move by Bitfarms to be a prudent step towards expansion and optimizing their assets. The company’s decision to deploy additional 10,000 miners at Stronghold’s Scrubgrass site in Pennsylvania, following their initial agreement in September, demonstrates a clear commitment to growth and efficiency improvements.
As an analyst, I’d rephrase that statement like this: I’ve just learned that Bitfarms, a crypto mining company, has secured its second partnership – this time with Stronghold Digital Mining, based in the United States. This collaboration aims to extend Bitfarms’ operations at its Pennsylvania site, signifying growth and expansion in their cryptocurrency mining activities.
As per the hosting contract, the BTC mining company has decided to move 10,000 more mining devices to Stronghold’s Scrubgrass location, which initially planned to use these mining units at their Yguazu site in Paraguay.
According to Bitfarms CEO, Ben Gagnon, improving our assets quickly at Stronghold’s Pennsylvania locations will bring substantial short-term benefits to Bitfarms.
As a researcher, I can affirm that the influx of approximately 20,000 miners at these locations will undeniably enhance operational efficiency across our entire mining fleet, contributing significantly to our company’s overall performance.
By connecting our operations with Stronghold’s current power production setup, we can lower our need for additional investments and gain more authority over the costs associated with generating power, he explained.
This will be achieved through energy trading and better utilization of the wide range of operating modes of Bitmain’s T21 miners, he said.
The original terms of this contract come to an end on December 31, 2025. From then on, it will auto-renew every year. Furthermore, Bitfarms is responsible for sending Stronghold 50% of the miners’ monthly profits.
Stronghold received a refundable deposit of $7.8 million from Bitfarms, which is meant to cover anticipated energy expenses during the initial three-month period.
In September, Bitmain signed its first hosting contract with Stronghold, placing an initial 10,000 mining machines at the Panther Creek site in Pennsylvania.
As a researcher, I eagerly anticipate finalizing our takeover of Stronghold, which will pave the way for us to expand our presence in the United States and broaden our operations beyond Bitcoin mining.
At present, Bitfarms runs 12 operational Bitcoin data centers, while an additional two are being constructed. Furthermore, it holds hosting arrangements for data centers located in the U.S., Canada, Paraguay, and Argentina.
The main source of power for their Bitcoin mining operations is renewable hydroelectric energy, as well as long-term power agreements designed for sustainability.
Despite the agreement, Bitfarms stock (BITF) tanked 10% on the day, falling to $1.96 in after-hours trading, according to Google Finance. The slide mirrors broader market movements with crypto markets retreating by 6% over the past 24 hours and related stocks following suit.
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2024-11-01 06:01