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Crypto-mining company Bitfarms is expanding its operations in a deal with US firm Stronghold Digital Mining. Bitfarms will add 10,000 miners at Stronghold’s Pennsylvania site, utilising Stronghold’s power infrastructure to reduce costs. The deal, which runs until end-2025 and renews yearly, involves Bitfarms paying Stronghold 50% of mining profits and a $7.8m deposit for initial power costs. Despite the announcement, Bitfarms’ stock dropped 10%, reflecting a broader 6% market decline in crypto.

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Crypto mining company Bitfarms is doing some serious expansion, with a second deal to grow their operations at a site in Pennsylvania, run by US-based Stronghold Digital Mining. This agreement means Bitfarms can add another 10,000 miners at Stronghold’s Scrubgrass location. Initially, they planned to use this mining equipment at their Yguazu site in Paraguay.

Bitfarms CEO, Ben Gagnon, is stoked about these improvements. He believes these fast-paced upgrades at Pennsylvania sites will make a valuable and speedy impact on Bitfarms. They aim to crank up the effectiveness of the mining sites and ultimately make their overall operations more efficient.

Ben also pointed out that syncing up with Stronghold’s existing power infrastructure will cut down costs and gives Bitfarms more control over power expenses. This is possible thanks to energy trading and improved usage of the many operating modes of Bitmain’s T21 miners.

The first stretch of this deal will last until the end of 2025 and it’ll auto-renew every year. On top of this, Bitfarms will fork over 50% of the profits from the miners to Stronghold on a monthly basis. They also paid Stronghold a refundable deposit of $7.8 million to account for the first three months of power costs.

This isn’t Bitfarms’ first rodeo. They first teamed up with Stronghold in September, bringing the first batch of 10,000 miners to their Panther Creek facility in Pennsylvania. Looking ahead, Bitfarms hopes to bag Stronghold and stick to their strategy to broaden their US territory and extend their business beyond Bitcoin mining.

Bitfarms, at the moment, operates 12 Bitcoin data centers and has two more in the works. They’ve also got deals with data centers in the US, Canada, Paraguay, and Argentina. Their Bitcoin mining outfits are mainly powered by renewable hydroelectric energy and sustainable long-term power deals.

However, after announcing the agreement, Bitfarms’ stock took a 10% dip down to $1.96 during after-market trading. This is a similar reflection of the wider market where crypto has fallen by 6% in the last day, pulling related stocks down with it.

Source: Cointelegraph