Bitfarms announced a strategic expansion into Pennsylvania. The company plans to establish a new mining facility in Sharon, Pennsylvania, with an initial capacity of 12 megawatts (MW) of power. This facility has the potential to be scaled up to 120 MW by 2025, significantly boosting Bitfarms’ overall mining capabilities.
This expansion coincides with news of Riot Platforms, Inc., another major Bitcoin miner, increasing its ownership stake in Bitfarms to 14%. This acquisition represents approximately 0.35% of Bitfarms’ issued shares. Additionally, Riot Platforms has expressed its intention to nominate new board members for Bitfarms, hinting at a potential attempt to influence the company’s direction.
The Pennsylvania expansion offers several advantages for Bitfarms. The location falls within the Pennsylvania-New Jersey Maryland (PJM) Interconnection, known for its competitive electricity rates. This access will allow Bitfarms to optimize and potentially hedge their energy costs, a crucial factor in profitable Bitcoin mining.
The news comes amidst a period of fluctuation for both companies. Bitfarms is currently facing a takeover bid from Riot Platforms. This expansion into Pennsylvania could be seen as a strategic move by Bitfarms to solidify its position and demonstrate its growth potential to investors.
While the long-term implications of Riot Platforms’ growing stake remain unclear, the combined news highlights a consolidating trend within the Bitcoin mining industry. Companies are looking to expand their operations and secure access to reliable and affordable energy sources.
The success of Bitfarms’ Pennsylvania expansion will depend on several factors, including its ability to execute its plans efficiently, secure additional funding if needed, and navigate the ongoing influence of Riot Platforms. Regardless, this development signifies a significant step for Bitfarms in its journey to become a major player in the North American Bitcoin mining landscape.
