Bitfarms Supercharges Growth with 2.2 EH/s Hosting Deal: A Game-Changing Partnership with Stronghold
Bitfarms Announces Hosting Deal with Stronghold Digital Mining
Mining company Bitfarms has announced a hosting deal with Stronghold Digital Mining that will bring an additional 2.2 EH/s of computing power online in October 2024, two months ahead of schedule.
The agreement will add 10,000 Bitmain T21 miners to Bitfarms’ Panther Creek facility in Pennsylvania, starting October 1, 2024. This move is expected to significantly boost the company’s computing power and enhance its operations in the region.
Bitfarms CEO Ben Gagnon cited the company’s Pennsylvania facilities as having huge potential and said they will play a key role in diversifying the company’s operations. Gagnon explained the facilities:
“It will provide energy trading opportunities, competitive electricity costs, and access to high-performance computing (HPC)/AI. We look forward to completing the Stronghold acquisition and accelerating our diversification strategy beyond Bitcoin mining, thereby creating greater long-term shareholder value.”
Bitfarms will pay Stronghold a commission equal to 50% of the revenue generated from the miner hosting contract, which will be renewed annually until either party decides not to renew.
Riot Platforms Criticizes Stronghold Acquisition
Riot Platforms, as Bitfarms’ largest shareholder, has expressed concerns over the company’s acquisition of Stronghold Digital Mining. In an open letter to shareholders, Riot urged the Bitfarms board of directors to reassess the deal, citing concerns over corporate governance and the potential impact on shareholder value.
Riot has assessed Bitfarms’ corporate governance as “problematic” and proposed electing two independent candidates to the board. The company has also cautioned Bitfarms investors about the potential risks associated with the acquisition, claiming that it was “designed to entrench” the Bitfarms board and was “dilutive” to shareholder value.
Bitfarms Responds to Riot’s Claims
Bitfarms has responded to Riot’s claims, defending its acquisition of Stronghold Digital Mining as a strategic move to rebalance its energy portfolio with U.S. operations. The company has also accused Riot of attempting to change the board of directors for their own benefit.
The controversy surrounding the acquisition has sparked a heated debate among investors and industry experts, with some questioning the wisdom of the deal and others defending Bitfarms’ decision to expand its operations in the United States.