Bitfarms expands into Pennsylvania, while Riot Platforms increases its ownership stake in the company to 14%.
On June 14, Bitfarms, a Bitcoin mining corporation, announced its expansion into the United States by establishing a new site in Sharon, Pennsylvania.
Bitfarms has consented to developing up to 120 megawatts (MW) of power capacity in the region, as indicated in the organization’s official press release.
Bitfarms will have access to competitive electricity rates and opportunities, enabling the firm to “optimize and hedge energy costs” at the new site within the Pennsylvania-New Jersey Maryland (PJM) Interconnection.
Expansion of operations of Bitfarms
By 2025, the expansion is anticipated to enhance Bitfarms’ operational footprint, support 8 EH/s capacity, and increase the company’s total power capacity to 648 MW, a 170% increase from its current capacities.
Nicolas Bonta, the governor and interim CEO of Bitfarms, discussed the expansion.
“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.”
Strategic implications
The Sharon expansion is strategically located in a deregulated state, enabling the Bitcoin mining firm to “participate in demand response and other curtailment programs.”
Ben Gagnon, Bitfarms’ chief mining officer, commented on the diversification of revenue stream accessibility during the expansion:
“Bitfarms will actively monitor and manage our Bitcoin mining operations and participate in PJM’s demand response programs to earn additional revenue and provide reliability services to the grid.”
Riot Platforms increase Bitfarms’ stake.
Riot Platforms also disclosed that it had increased its ownership stake in Bitfarms to 14% in conjunction with Bitfarms’ expansion announcement.
Riot acquired an additional 1,432,063 common shares of Bitfarms, which account for approximately 0.35% of Bitfarms’ issued and outstanding shares.
“Riot currently intends to requisition a special meeting of the Company’s shareholders, at which Riot intends to nominate several well-qualified and independent directors to join the Company’s board of directors.”
Riot’s recent recovery from a share price dip precipitated by allegations that the company would implode is evidenced by its acquisition of an additional Bitfarms stake.
