Bitfarms Expands U.S. Footprint with Stronghold Partnership, Adds 10,000 Miners in Pennsylvania

Canadian crypto mining firm Bitfarms is ramping up its U.S. operations with a second hosting agreement with Stronghold Digital Mining. The company will deploy an additional 10,000 miners at Stronghold’s Scrubgrass site.

Originally planned for its Yguazu site in Paraguay, this mining hardware relocation is expected to boost Bitfarms’ operational efficiency in the U.S. market. Company’s CEO Ben Gagnon described the expansion as an “asset optimization,” stressing that the rapid scaling of Stronghold’s facilities in Pennsylvania will “provide significant near-term value for Bitfarms” and improve its overall fleet efficiency.

Scrubgrass Project

The Scrubgrass project is one of Bitfarms’ latest steps to vertically integrate operations and utilize Stronghold’s existing energy infrastructure. By merging operations with Stronghold’s on-site power generation, Bitfarms can reduce capital expenditure and gain greater control over energy costs.

The company aims to leverage Stronghold’s energy trading capabilities and the adaptable settings of Bitmain’s T21 miners to maximize productivity while maintaining cost efficiency. This operational synergy, Gagnon noted, will help Bitfarms mitigate the impact of fluctuating power expenses, a critical consideration in the high-energy world of Bitcoin mining.

Strategic Moves by Bitfarms in a Challenging Market

The initial terms of the Bitfarms-Stronghold partnership run through December 2025, with an option to renew annually. Under the agreement, the Canadian miner will pay Stronghold 50% of monthly mining profits and has already deposited $7.8 million as an advance for power costs during the first three months of operation.

This partnership marks miner’s second deal with Stronghold, following adding 10,000 miners to the Panther Creek facility, also in Pennsylvania. With a growing base of 20,000 miners across the two sites, Bitfarms is pushing for a robust operational presence in the U.S., expanding its focus beyond its traditional base in Canada and Latin America.

Global Network Expansion

In addition to its U.S. expansion, Bitfarms operates a global network of 12 Bitcoin data centers, with two more under development. The company’s facilities are largely powered by renewable hydroelectric energy, a strategic choice aligned with its commitment to sustainable and cost-effective power sources.

Meanwhile, amid the ongoing takeover controversy, Bitfarms stock (BITF) took a 10% dip to $1.96 in after-hours trading. This reflects broader crypto market volatility that saw a 6% drop across crypto-related assets over the past 24 hours.