- Bitfarms expands into Sharon, Pennsylvania, aiming for 648 MW capacity by 2025.
- Riot Platforms acquires a 14% stake in Bitfarms, pushing for governance changes.
- Bitfarms’ expansion aims for cost-effective power and operational growth.
Bitfarms, a prominent Bitcoin mining company, has unveiled plans for a significant expansion into the United States by establishing a new site in Sharon, Pennsylvania. This move comes alongside Riot Platforms’ recent acquisition of a 14% ownership stake in Bitfarms, marking a pivotal moment for both companies in the cryptocurrency mining sector.
Expansion and Strategic Value
Bitfarms has committed to developing up to 120 megawatts (MW) of power capacity at its new location within the Pennsylvania-New Jersey Maryland (PJM) Interconnection. The purpose of this drive is to take advantage of comparatively cheap electrical power tariffs in the area, improve productivity, and manage power costs.
By 2025, the expansion is expected to support a capacity of 8 exahashes per second (EH/s), representing a substantial 170% increase in total power capacity to 648 MW.
Furthermore, Nicolas Bonta, the chairman and interim CEO of Bitfarms, said, “Executing on our strategy to cost-effectively expand our operating footprint in the U.S., we have entered into an agreement for flexible power trading within the PJM. […] This U.S. expansion not only strengthens our position in the industry but also enhances our geographical diversification.”
Riot Platforms’ Increased Stake and Future Plans
In parallel with Bitfarms’ expansion announcement, Riot Platforms has boosted its ownership stake to 14%, acquiring an additional 1,432,063 common shares of Bitfarms. This move underscores Riot’s confidence in Bitfarms’ growth prospects and its commitment to influencing the company’s governance.
Riot Platforms intends to leverage its increased stake by requisitioning a special shareholders’ meeting to nominate new independent directors to Bitfarms’ board. This strategic manoeuvre follows a recent recovery in Bitfarms’ share price, which had dipped amidst concerns over the company’s stability.
Implications and Market Response
The expansion into Sharon, Pennsylvania, positions Bitfarms in a deregulated state, facilitating participation in demand response programs and other regulatory advantages. Ben Gagnon, chief mining officer of Bitfarms, highlighted the potential for revenue diversification through participation in PJM’s demand response initiatives, which offer reliability services to the grid.
This expansion and Riot Platforms’ increased stake mark a pivotal phase for Bitfarms, as it aims to fortify its operational base and navigate the evolving landscape of cryptocurrency mining in North America.
