Bitfarms accelerates 2.2 EH/s hosting agreement with Stronghold.
Mining company BitFarms recently announced a hosting agreement with Stronghold Digital Mining to bring an additional 2.2 percent of its computing power online by October 2024.
The deal will add 10,000 Bitmain T21 miners to BitFarms' Panther Creek facility in Pennsylvania starting on October 1, 2024.
BitFarms CEO Ben Gannon touted the potential of the company's sites in Pennsylvania, saying the sites will be key to expanding the company's business. Ganon described the sites as follows:
“Offer power trading opportunities, competitive power costs and HPC/AI. We look forward to completing the Stronghold acquisition and accelerating our expansion strategy from Bitcoin mining to create greater long-term shareholder value.”
Bitfarms will pay Stronghold a fee equal to 50% of the profits from the mining hosting agreement, which will be renewed annually until both parties decide not to renew the contract.
Related: Bitfarms takes over 120MW mining megasite in US
A strong purchase from the Riot Platform Fire
BitFarms recently rescheduled the special meeting of shareholders—originally scheduled for October 29, 2024, to November 6, 2024—to allow the BitFarms special committee “sufficient time to review and respond to questions raised by Riot Platforms.”
Riot Platforms, Bitfarms' largest shareholder, issued an open letter to shareholders on September 3 calling for changes to Bitfarms' board of directors. Riot described Bitfarms' corporate governance as “broken” and proposed two independent candidates for the board.
In the letter, Riot Platforms specifically warned Bitfarms investors about the acquisition of Bitfarms Stronghold. Riot also described the acquisition as “discretionary” to shareholder value—saying competitors were unwilling to buy Stronghold at the price BitFarms paid to acquire the company.
Bitfarms responds to Riot's claims
BitFarms responded to Riot's proposal by saying that the board proposed changes to protect Riot's own interests.
The embattled mining company has defended its strong digital mining acquisition as a way to balance its energy portfolio towards US-based operations.
Magazine: Bitcoin miners steamroll after electricity theft, exchange ‘shutdown' scam: Asia Express
