Bitfarms to boost US presence with Pennsylvania expansion amid Riot takeover bid

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Bitfarms to boost US presence with Pennsylvania expansion amid Riot takeover bid
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Bitcoin miner Bitfarms is set to expand its operations in the US by leasing a site in Sharon, Pennsylvania, and deploying miners that can output 600 PH/s of hashrate.

In a June 13 statement, the firm said the site’s initial capacity will be 12 megawatts, with plans to expand to 120 MW by 2025. Bitfarms expects to bring the first 12 MW online before the end of this year, with the full capacity operational by the second half of 2025.

The project will leverage the Pennsylvania-New Jersey-Maryland Interconnection (PJM) energy market, where energy supply is abundant and renewable sources are increasingly prioritized. This provides Bitfarms with flexible energy opportunities, potentially lowering electricity costs and diversifying revenue streams.

Funding details

Bitfarms said the setup will be funded by issuing 1,532,745 common shares. The agreement includes a five-year lease for an 11,200-square-foot warehouse, with options to renew for up to 17 years or to purchase during the lease term.

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Bitfarms’ Interim CEO Nicolas Bonta highlighted the significance of this expansion for the firm’s capacity and market position. He noted that the US expansion would boost Bitfarms’ 2025 power capacity to 648 MW, a 170% increase from its current capacity and a 47% rise from its projected year-end 2024 capacity.

Bonta added:

“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. As additional opportunities in our pipeline come to fruition, we will update both our contracted power capacity and our 2025 EH/s target.”

Bitfarms chief mining officer Ben Gagnon said the expansion will allow the firm to potentially earn additional revenue by participating in PJM’s demand response programs and providing reliable services to the grid.

Hostile takeover

Bitfarms’ expansion moves come as rival Riot Platforms is planning a “hostile takeover” of its operations.

In a June 12 statement, Bitfarms stated that Riot’s actions were not aligned with its shareholders and that their attacks were efforts to push their low-ball bid. It stated:

“After carefully reviewing and evaluating Riot’s proposal, the Special Committee determined that the proposal significantly undervalues Bitfarms and is not in the best interest of shareholders.”

Meanwhile, according to SEC filings, Riot has spent over $100 million to raise its stake in the Canada-based miner to 13% as of press time, from roughly 4% when the unsolicited offer was first made.

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