Stronghold Digital Mining, Inc. has announced a two-year hosting agreement with Cantaloupe Digital, a subsidiary of Canaan, the manufacturer of Avalon-made ASICs. Starting on May 15, Stronghold Digital will install Avalon A1246 mining rigs, each with 90 terahash per second (TH/s) of hashpower. The company plans to install 2,000 Avalon A1346 miners in June, with each miner expected to have a hashpower of 110 TH/s.
Increased Hashrate Capacity for Stronghold Digital Mining
Once all the miners are installed, Stronghold anticipates that its delivered hashrate capacity will increase to 3.6 exahash per second (EH/s) by June, putting the company in line with other mining companies that are also expanding their fleets in 2023 with additional ASIC rigs. Greg Beard, chairman and CEO of Stronghold, emphasized the capital efficiency of the company’s mining fleet today, stating that the latest move will allow the company to fully utilize the capacity of its Panther Creek data center.
Agreement Details
Under the agreement, Stronghold will receive 50% of the bitcoin (BTC) mined by the Canaan Miners. Additionally, Canaan will make payments to Stronghold equal to 55% of the net cost of power at the Panther Creek plant, calculated on a monthly basis in dollar-per-megawatt-hour terms.
Cost of Producing Avalon Miners Decreases
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 A13 series, has dropped from $50 per terahash per second (TH/s) to $12 per TH/s.
In conclusion, Stronghold Digital Mining has signed a two-year hosting agreement with Cantaloupe Digital, a subsidiary of Canaan, the manufacturer of Avalon-made ASICs. The company plans to install 2,000 Avalon A1346 miners in June, with each miner expected to have a hashpower of 110 TH/s. Once all the miners are installed, Stronghold anticipates that its delivered hashrate capacity will increase to 3.6 exahash per second (EH/s) by June. The cost of goods sold (COGS) for each generation of Avalon bitcoin ASICs has dropped from $50 per terahash per second (TH/s) to $12 per TH/s, according to an analysis of Canaan’s annual report.