Bitfarms Expands to Pennsylvania, Rivaling Riot’s Growth

Bitfarms Ltd., a prominent Bitcoin (BTC) mining company, has announced its expansion into the United States, specifically in Sharon, Pennsylvania, as of June 14. According to the company’s official press release, Bitfarms has committed to establishing up to 120 megawatts (MW) of power capacity in this new region. The Pennsylvania-New Jersey-Maryland (PJM) Interconnection will provide Bitfarms with access to affordable electricity rates and opportunities that will help the company manage and reduce its energy costs effectively.

This expansion is set to enhance Bitfarms’ operational capabilities, aiming to support a capacity of 8 EH/s by the year 2025. The move will also boost the company’s total power capacity to 648 MW, marking a staggering 170 percent increase from its current capacity. Nicolas Bonta, who serves as the Chairman and Interim CEO of Bitfarms, emphasized the strategic significance of this expansion. He stated that the agreement for flexible energy trading within the PJM will not only further stabilize Bitfarms’ operational footprint in the U.S. but also bolster its geographical diversification.

Situated in a deregulated state, the new site in Sharon, Pennsylvania, offers strategic advantages for Bitfarms. The BTC mining company will have the capability to engage in demand response and other energy curtailment programs. Ben Gagnon, Bitfarms’ Chief Mining Officer, remarked on how these programs will diversify the company’s revenue sources. He indicated that Bitfarms would actively oversee its Bitcoin mining activities while participating in PJM’s demand response initiatives, thereby earning additional income and offering reliability services to the power grid.

On a related note, Riot Platforms, Inc., another major player in the industry, has increased its investment in Bitfarms, elevating its ownership stake to 14 percent. This recent acquisition consists of an additional 1,432,063 common shares of Bitfarms, representing around 0.35 percent of Bitfarms’ total issued and outstanding shares. Riot Platforms stated its intention to call for a special meeting of Bitfarms’ shareholders, where they plan to nominate several highly qualified and independent directors to join Bitfarms’ board of directors.

Riot’s decision to increase its stake in Bitfarms coincides with Bitfarms’ ongoing recovery from a recent slump in share prices, which had been driven by speculation about the company’s potential collapse. The increased investment showcases Riot’s confidence in Bitfarms’ long-term stability and growth.

The expansion is seen as a pivotal move for Bitfarms, not only increasing its operational capacity but also allowing it to harness the benefits of a deregulated energy market in Pennsylvania. This will enable the company to optimize its operational costs and better manage the volatile nature of cryptocurrency mining.

The geographical diversification achieved through this expansion into the U.S. is expected to mitigate risks associated with regulatory and market fluctuations in any single region. This strategic decision underlines Bitfarms’ commitment to growing its infrastructure and maintaining a stable, cost-effective operational environment.

Bitfarms Ltd.’s strategic expansion into Sharon, Pennsylvania, and Riot Platforms’ increased investment reflects a significant vote of confidence at a critical time as both companies aim to solidify their positions in the highly competitive Bitcoin mining industry. The move is poised to offer operational benefits, revenue diversification, and increased investor confidence as Bitfarms moves forward with its ambitious growth plans.