Crypto mining company Bitfarms recently announced a hosting agreement with Stronghold Digital Mining to add 2.2 EH/s computing power in October 2024, two months ahead of schedule.
The agreement will add 10,000 Bitmain T21 miners to Bitfarms' Panther Creek facility in Pennsylvania and begin operation on October 1, 2024. Bitfarms CEO Ben Gagnon said these facilities are key to the company's diversification of business operations and will help expand its business, reduce electricity costs, and enter the fields of energy trading and AI.
Bitfarms will pay Stronghold a fee equivalent to 50% of the profits generated by the miner hosting agreement, which will be renewed annually until either party decides not to renew the contract.
Previously, Bitfarms' Stronghold acquisition plan triggered strong opposition from its largest shareholder Riot Platforms. Riot called for reforms to the Bitfarms board of directors and questioned the value of the Stronghold acquisition, believing that the transaction would dilute shareholder interests.
In response, Bitfarms said that Riot's proposal was out of its own interest and that the acquisition of Stronghold was a way to rebalance its energy portfolio and shift toward US business. (Cointelegraph)