Bitfarms Enters into 10,000 Miner Hosting Agreement with Stronghold Digital Mining

Core Viewpoint - Bitfarms has entered into a miner hosting agreement with Stronghold Digital Mining, which is expected to enhance its operational efficiency and control over power costs, with an immediate addition of 2.2 EH/s capacity in October 2024, ahead of schedule [1][2][3]. Company Overview - Bitfarms is a vertically integrated Bitcoin data center company founded in 2017, operating 12 data centers across Canada, the United States, Paraguay, and Argentina, focusing on sustainable energy sources [4][5]. - The company aims to optimize its assets and diversify beyond Bitcoin mining to enhance long-term shareholder value [3]. Hosting Agreement Details - The Hosting Agreement will commence on October 1, 2024, and has an initial term until December 31, 2025, with automatic renewals unless either party opts out [3]. - Bitfarms will deploy 10,000 Bitmain T21 miners to Stronghold's Panther Creek site, with a monthly fee structure based on profits generated by the miners [2][3]. - An upfront deposit of $7.8 million has been made by Bitfarms to cover estimated power costs for the first three months of operations [3]. Future Growth and Strategy - The agreement is seen as a pathway for Bitfarms to leverage Stronghold's power generation infrastructure, which offers potential for multi-year expansion and access to energy trading opportunities [3]. - The company has reiterated its guidance for a hashrate of 21 EH/s in 2024 and 35+ EH/s in 2025, indicating a strong growth trajectory [1].