Stronghold Digital Partners With Canaan Subsidiary to Boost Bitcoin Mining Capacity by 400 PH/s

Stronghold Digital, a starring Bitcoin mining firm, announced the institution has entered into a two-year hosting statement with Cantaloupe Digital LLC, a subsidiary of the bitcoin application-specific integrated circuit (ASIC) manufacturer, Canaan. Under the caller partnership, Stronghold Digital plans to activate 2,000 Avalon A1346 miners and 2,000 A1246 models. This volition effect successful a full hashrate capableness of 400 petahash per 2nd (PH/s) by the extremity of June.

Stronghold Digital’s Hosting Agreement With Canaan Subsidiary Aims to Increase Bitcoin Mining Capabilities

On May 4, 2023, Stronghold Digital Mining, Inc. (Nasdaq: SDIG) announced a two-year hosting woody with Cantaloupe Digital, a subsidiary of Canaan, the shaper of Avalon-made ASICs. Starting May 15, Stronghold Digital volition instal Avalon A1246 mining rigs, each with 90 terahash per 2nd (TH/s) of hashpower.

According to the announcement, the institution plans to instal 2,000 Avalon A1346 miners successful June. Each A1346 miner is expected to person a hashpower of 110 TH/s. Once each the miners are installed, Stronghold anticipates that its delivered hashrate capableness volition summation to 3.6 exahash per 2nd (EH/s) by June. This determination puts Stronghold successful enactment with different mining companies that are besides expanding their fleets successful 2023 with further ASIC rigs.

“While we person emphasized our indispensable deleveraging efforts implicit the past 10 months, we deliberation that the astir meaningful measurement of our enactment is the superior ratio of our mining fleet today,” Greg Beard, president and main enforcement serviceman of Stronghold said successful a connection sent to Bitcoin.com News.

According to Stronghold, the latest determination volition let the institution to afloat utilize the capableness of its Panther Creek information center. As portion of the agreement, Stronghold volition person 50% of the bitcoin (BTC) mined by the Canaan Miners. Additionally, Canaan volition marque payments to Stronghold adjacent to 55% of the nett outgo of powerfulness astatine the Panther Creek plant, calculated connected a monthly ground successful dollar-per-megawatt-hour terms.

The Stronghold quality coincides with Blocksbridge Consulting publishing research connected April 29, 2023, indicating that the outgo of producing Avalon miners has decreased. According to an analysis of Canaan’s yearly report, the outgo of goods sold (COGS) for each procreation of Avalon bitcoin ASICs, from the A7 to A13 series, has dropped from $50 per terahash per 2nd (TH/s) to $12 per TH/s.

Meanwhile, bitcoin miners person had a much palmy twelvemonth successful 2023 compared to 2022. The terms of bitcoin (BTC) has been higher this year, and contempt 5 consecutive trouble increases, miners experienced a 1.45% decrease connected Thursday.

What bash you deliberation astir Stronghold Digital’s hosting statement deal? Share your thoughts successful the comments conception below.

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