Bitfarms announced plans for a large-scale mining site in Pennsylvania, boosting its 2025 power capacity guidance to over 35 EH/s.
Bitcoin miner Bitfarms has announced plans to develop a "large-scale" mining site in Pennsylvania, aiming to significantly expand its power capacity. The move is expected to boost the company's power capacity to 648 megawatts by 2025, a growth of 170% from its current capacity. This announcement comes amidst a backdrop of takeover drama involving Riot Platforms.
The Pennsylvania site is strategically located within the Pennsylvania-New Jersey-Maryland Interconnection, the largest wholesale electricity market in the U.S., offering Bitfarms access to competitive electricity and the ability to optimize and hedge energy costs. The company emphasized the advantages of the deregulated state for their operations. "With the site’s ability to support 8 EH/s, alongside our recent acquisition of an additional 100 MW in Paraguay, we project 2025 guidance of over 35 EH/s," Bitfarms stated.
Following the news, Bitfarms' shares surged, trading at $2.78, which is a 14.7% gain.
Regarding the takeover scenario, Bitfarms disclosed that a Special Committee of independent directors reviewed Riot Platforms' unsolicited proposal from April 22, 2024, and determined it "significantly undervalues Bitfarms and is not in the best interest of shareholders." Riot Platforms has recently purchased nearly 6 million shares of Bitfarms, raising its stake to 13.1%.
In the past month, Riot Platforms made an attempt to acquire Bitfarms for approximately $950 million, which was rejected by Bitfarms.
Bitfarms' chairman and interim CEO, Nicolas Bonta, commented on the development, "Leveraging our operational excellence and farm design expertise, we’re poised to optimize this site, facilitating efficient growth. This U.S. expansion not only strengthens our position in the industry but also enhances our geographical diversification."
The construction at the Pennsylvania site is set to begin immediately after closing, with the first 12 megawatts expected to go online in the fourth quarter of 2024 and the remaining capacity to be operational in the second half of 2025.
Philippe Fortier, SVP of Corporate Development at Bitfarms, expressed confidence in the long-term access to low-cost U.S. energy and flexible power trading options provided by the new site.
The agreement involves the development of up to 120 MW of strategic and flexible power, compensated entirely by the issuance of 1,532,745 Bitfarms common shares, and includes a five-year lease with renewal options and the potential to purchase at fair market value.
