Highlights:
- Bitfarms has secured a site in Sharon, PA, planning to develop up to 120 MW of power capacity by 2025.
- The new site is part of the PJM Interconnection, offering Bitfarms competitive electricity rates and diverse revenue streams.
- The strategic expansion into Pennsylvania marks a 170% increase in Bitfarms’ total power capacity, supporting 8 EH/s by 2025.
Bitfarms Ltd, a prominent leader in Bitcoin mining, has announced a new expansion phase by securing a strategic site in Sharon, Pennsylvania. This move is part of the company’s strategy to enhance its operating footprint across the United States.
Advertisement
#Bitfarms, a #Bitcoin mining company, has expanded into the United States with a new facility in #Sharon, #Pennsylvania, aiming to develop up to 120 megawatts of power capacity.
This move is part of Bitfarms’ strategy to enhance operational footprint and hedge energy costs,… pic.twitter.com/NhL43vtRCs
— TOBTC (@_TOBTC) June 14, 2024
Bitfarms Secures New Site for Growth
The new site, nestled within the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, places Bitfarms in the heart of the largest wholesale electricity market in the U.S. The PJM market is recognized for its deregulated environment. This setup offers participants competitive electricity pricing and opportunities for cost management through various energy programs. Consequently, Bitfarms will gain access to flexible power trading and demand response initiatives, allowing the company to enhance its operational efficiency and profitability.
According to Nicolas Bonta, Chairman and Interim CEO of Bitfarms, the expansion is a strategic step forward. “Our agreement within the PJM underscores our commitment to cost-effectively augment our U.S. operations,” Bonta explained. “This initiative not only fortifies our industry standing but also broadens our geographical reach.”
Moreover, the Sharon site will significantly contribute to the company’s growth. This expansion will raise its 2025 power capacity to 648 MW, marking a substantial 170% increase from its current capacity. This site development is anticipated to support a capacity of 8 EH/s, aligning with Bitfarms’ goal of achieving over 35 EH/s by 2025.
Optimizing Operations and Community Engagement
Ben Gagnon, Chief Mining Officer, highlighted the new location’s operational advantages. “Joining the PJM market allows us to actively participate in demand response programs and provide grid reliability services,” Gagnon stated. Additionally, this expansion will enable Bitfarms to offer a flexible base load, which is crucial during grid stress, supporting operational demands and community needs.
Following the agreement, the immediate focus is on constructing and retrofitting the existing structures. This will facilitate the initial 12 MW of power by the fourth quarter of 2024, with plans to fully operationalize the 120 MW capacity by the latter half of 2025.
Philippe Fortier, SVP of Corporate Development, expressed confidence in the long-term benefits of this location. “Sharon, along with other PJM sites, will ensure sustained access to low-cost energy, which is pivotal for our long-range operational planning and sustainability efforts,” he remarked.
Riot Acquires More Bitfarms Shares
Riot Platforms has increased its shareholding in Bitfarms, purchasing an additional 1,432,063 shares at approximately $2.70 each, bringing its total ownership to $3.87 million. This acquisition escalates Riot’s total ownership to 57.62 million shares, representing about 14% of Bitfarms. The transaction is part of Riot’s broader scheme to orchestrate a hostile takeover of the Bitcoin mining company.
Riot Platforms, Inc. Reports Beneficial Ownership of 14% in Bitfarms Ltd.
For more information, please visit: https://t.co/cBJ2HTqmvM
For disclaimers, please visit: https://t.co/koUzW1HLFa.
— Riot Platforms, Inc. (@RiotPlatforms) June 13, 2024
Riot attempted a takeover of Bitfarms valued at roughly $950 million last month. However, Bitfarms has countered these advances by adopting a defensive strategy known as a “poison pill.” This tactic aims to prevent potential takeovers. It works by diluting the shareholdings of any entity that acquires more than a 15% stake in Bitfarms between June 20 and September 10. After this period, if certain conditions are met, the threshold will increase to 20%.
Jason Les, CEO of Riot Platforms, expressed discontent with Bitfarms’ approach. He criticized the company for not engaging in good faith and resorting to an unconventional poison pill strategy that activates below the usual 20% threshold. “Instead of engaging with us privately and in good faith, Bitfarms has responded by implementing an off-market Poison Pill with a trigger well below the customary 20% threshold,” he remarked.
Read More
- Indian Court Clarifies Legality of Cryptocurrency Dealings
- Most Important Cryptos Other Than Bitcoin – Top 15 Bitcoin Alternatives 2024
- 20 Top Cryptocurrencies to Watch for 2024 – Detailed Reviews
- Next Cryptocurrency to Explode in 2024
Advertisement
