Bitfarms Expands into Pennsylvania Amid Riot’s Growing Stake
Bitcoin mining company Bitfarms has announced its expansion into the United States with the establishment of a new site in Sharon, Pennsylvania. This strategic move comes as Riot Platforms increases its ownership stake in Bitfarms to 14%.
Bitfarms’ Expansion Announcement
In an official press release, Bitfarms revealed plans to develop up to 120 megawatts (MW) of power capacity at the new site. This expansion into the Pennsylvania-New Jersey-Maryland (PJM) Interconnection will provide Bitfarms with access to competitive electricity rates and opportunities to optimize and hedge energy costs.
Operational Footprint and Capacity Increase
The Sharon site is expected to significantly boost Bitfarms' operational capacity. The company aims to support an 8 exahash per second (EH/s) capacity by 2025, increasing its total power capacity to 648 MW — a 170% rise from its current capacity. Nicolas Bonta, chairman and interim CEO of Bitfarms, emphasized the strategic importance of this 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 and Revenue Diversification
The new site in Sharon is strategically positioned within a deregulated state, allowing Bitfarms to participate in demand response and other curtailment programs. Ben Gagnon, chief mining officer of Bitfarms, highlighted the benefits of this move:
"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’ Increased Stake in Bitfarms
Alongside Bitfarms’ expansion, Riot Platforms announced an increase in its ownership stake in Bitfarms to 14%. Riot acquired an additional 1,432,063 common shares of Bitfarms, representing approximately 0.35% of Bitfarms’ issued and outstanding shares. This acquisition comes in the wake of recent market recovery following a share price dip caused by rumors of the company's potential collapse.
Riot Platforms indicated its intention to play a more active role in Bitfarms' governance. The company plans to requisition a special meeting of Bitfarms’ shareholders to nominate several well-qualified and independent directors to Bitfarms' board of directors.
The expansion into Pennsylvania and the increased stake by Riot Platforms mark significant developments for Bitfarms. The new site will enhance Bitfarms' operational capacity and geographical diversification while allowing the company to leverage favourable energy costs and demand response programs. Meanwhile, Riot Platforms' growing influence in Bitfarms’ governance could shape the company's strategic direction in the coming years.
Source: Bitfarms
