The mining equipment was initially intended to be deployed in Yguazu, Paraguay, at some point in December 2024, according to Bitfarms.
Bitfarms, a mining company, has recently announced that it has engaged into a hosting collaboration with Stronghold Digital Mining to bring an additional 2.2 exhashes per second (EH/s) of computing capacity online during October 2024, two months ahead of schedule.
The agreement will commence on October 1, 2024, and will include the installation of 10,000 Bitmain T21 miners at Bitfarms’ Panther Creek facility in Pennsylvania.
Ben Gagnon, CEO of Bitfarms, discussed the vast potential of the company’s Pennsylvania properties and stated that they would be instrumental in diversifying the company’s business operations. Gagnon clarified that the locations:
“Offer access to energy trading opportunities, low costs, and HPC/AI. We anticipate the successful completion of our acquisition of Stronghold and the acceleration of our strategy to diversify beyond Bitcoin mining in order to generate more long-term shareholder value.”
Bitfarms will pay Stronghold a fee that is equivalent to 50% of the revenues generated from the miner hosting agreement. This fee will be renewable annually until either party chooses not to renew the contract.
Bitfarms has recently rescheduled its special shareholders meeting from Oct. 29, 2024, to Nov. 6, 2024, in order to provide the Bitfarms Special Committee with “sufficient time to evaluate and respond” to the demands made by Riot Platforms.
Bitfarms’ board of directors was the subject of an open letter to shareholders on September 3, issued by Riot Platforms, the company’s largest shareholder. The letter called for modifications to the board. Riot described Bitfarms’ corporate governance as “broken” and suggested that the board elect two independent candidates.
Riot Platforms issued a letter to Bitfarms’ investors, warning them that the acquisition of Stronghold was “designed to entrench” the Bitfarms board. Riot also described the acquisition as “dilutive” to shareholder value, stating that competitors were reluctant to purchase Stronghold at the price Bitfarms paid to acquire the company.
Bitfarms responded to Riot’s proposals by stating that Riot proposed the board modifications to further its own interests.
The mining company that is currently facing financial difficulties also defended its acquisition of Stronghold Digitial Mining as a strategy to rebalance its energy portfolio towards operations based in the United States.
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