Bitfarms Strengthens U.S. Presence with Pennsylvania Expansion Amid Riot Acquisition Bid
Bitcoin mining company Bitfarms plans to expand its operations in the United States by leasing a site in Sharon, Pennsylvania and deploying a miner capable of outputting a hashrate of 600 PH/s.
In a June 13 statement, the company said the site will have an initial capacity of 12 MW, with plans to expand to 120 MW by 2025. Bitfarms plans to bring the first 12 MW online before the end of this year, with full capacity expected to be operational by 2025. Second half of 2025.
The project will leverage the Pennsylvania-New Jersey-Maryland Interconnection (PJM) energy market, where energy supplies are plentiful and renewable energy sources are increasingly prioritized. This provides flexible energy opportunities for Bitfarms, potentially lowering electricity costs and diversifying revenue streams.
Funding Details
Bitfarms said it would raise funds for the establishment by issuing 1,532,745 common shares. The agreement includes a five-year lease for the 11,200-square-foot warehouse, with an option to renew for up to 17 years or purchase during the lease term.
Nicolas Bonta, interim CEO of Bitfarms, emphasized the importance of this expansion to the company’s capabilities and market position. He noted that the U.S. expansion will increase Bitfarms’ 2025 power capacity to 648 MW, a 170% increase over its current capacity and a 47% increase over its projected capacity by the end of 2024.
Bonta added:
“With field capacity to support 8 EH/s, coupled with the recent acquisition of an additional 100 MW in Paraguay, we anticipate guidance of over 35 EH/s for 2025. We will update both contracted power capacity and 2025 EH/s targets as additional opportunities in the pipeline come to fruition.”
Bitfarms Chief Mining Officer Ben Gagnon said the expansion will allow the company to participate in PJM’s demand response program and potentially generate additional revenue by providing reliable services to the grid.
hostile takeover
Bitfarms’ expansion move comes as rival Riot Platform plans a “hostile takeover” of its operations.
In a June 12 statement, Bitfarms said Riot’s actions were inconsistent with shareholders and that their attacks were an effort to push for a low bid. It said:
“After carefully reviewing and evaluating Riot’s proposal, the Special Committee determined that the proposal significantly undervalues Bitfarms and is not in the best interests of shareholders.”
Meanwhile, SEC filings show Riot spent more than $100 million to increase its stake in the Canada-based miner from about 4% when the unsolicited offer was first made to 13% as of press time.
