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Stronghold Digital Partners with Canaan Subsidiary to Increase Bitcoin Mining Capacity by 400 PH/s – Mining Bitcoin News
Stronghold Digital, a leading Bitcoin mining company, announced that the company has entered into a two-year hosting agreement with Cantaloupe Digital LLC, a subsidiary of bitcoin application-specific integrated circuit (ASIC) manufacturer Canaan. Under the new partnership, Stronghold Digital plans to activate 2,000 Avalon A1346 miners and 2,000 A1246 models. This will result in a total hash rate capacity of 400 petahash per second (PH/s) by the end of June.
Stronghold Digital’s hosting agreement with its subsidiary in Canaan aims to increase Bitcoin mining capacity
On May 4, 2023, Stronghold Digital Mining, Inc. (Nasdaq: SDIG) announced a two-year hosting agreement with Cantaloupe Digital, a subsidiary of Canaan, the manufacturer of Avalon-made ASICs. Starting May 15th, Stronghold Digital will install Avalon A1246 mining rigs, each with 90 terahash per second (TH/s) of hash power.
According to the announcement, the company plans to install 2,000 Avalon A1346 miners in June. Each A1346 miner is expected to have a hash power of 110 TH/s. Once all the miners are installed, Stronghold expects the delivered hash rate capacity to increase to 3.6 exahash per second (EH/s) by June. This move puts Stronghold in line with other mining companies that are also expanding their fleets in 2023 with additional ASIC rigs.
“While we have emphasized our necessary mitigation efforts over the past ten months, we believe the most meaningful measure of our work is the capital efficiency of our mining fleet today,” Greg Beard, chairman and CEO of Stronghold, said in a statement sent to Bitcoin.com News.
According to Stronghold, the latest move will allow the company to fully utilize the capacity of the Panther Creek data center. As part of the deal, Stronghold will receive 50% of the bitcoin (BTC) mined by Canaan Miners. In addition, Canaan will make payments to Stronghold equal to 55% of the net cost of power at the Panther Creek facility, calculated on a monthly dollar-per-megawatt-hour basis.
The Stronghold news coincides with Blocksbridge Consulting publishing research on April 29, 2023 indicating that the cost of producing Avalon miners has decreased. According to an analysis of Canaan’s annual report, the cost of goods sold (COGS) for each generation of Avalon bitcoin ASICs, from the A7 to the A13 series, has dropped from $50 per terahash per second (TH/s) to $12 per TH/s .
Meanwhile, bitcoin miners have had a more successful year in 2023 compared to 2022. The price of bitcoin (BTC) has been higher this year, and despite five consecutive difficulty levels, miners experienced a 1.45% decline on Thursday.
What do you think of Stronghold Digital’s hosting deal? Share your thoughts in the comments section below.
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