Bitfarms expands into Pennsylvania amid Riot’s growing stake

News Feed - 2024-06-14 05:06:25

Josh O"Sullivan49 minutes agoBitfarms expands into Pennsylvania amid Riot’s growing stakeBitfarms announces U.S. expansion in Pennsylvania, while Riot Platforms increases its ownership stake in the company to 14%.167 Total views6 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin mining company Bitfarms announced its expansion into the United States on June 14, establishing a new site in Sharon, Pennsylvania.

According to the firm’s official press release, Bitfarms has agreed to develop up to 120 megawatts (MW) of power capacity in the region.

The new site within the Pennsylvania-New Jersey Maryland (PJM) Interconnection will grant Bitfarms access to competitive electricity rates and opportunities that help the firm “optimize and hedge energy costs.”

Related:Bitfarms pushes back against Riot’s $950M takeover attemptExpansion of operations

The expansion is expected to improve Bitfarms’ operational footprint, support 8 EH/s capacity by 2025, and increase the company’s total power capacity to 648 MW — a 170% increase from the current capacity. 

Nicolas Bonta, chairman and interim CEO of Bitfarms, commented on the 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.”

Related:Riot acquires 13% Bitfarms stake as CEO decries ‘poison pill‘ strategyStrategic implications 

The Sharon expansion is strategically positioned within a deregulated state, allowing the Bitcoin (BTC) mining firm to “participate in demand response and other curtailment programs.”

Speaking on the expansion’s diversification of revenue stream accessibility, Ben Gagnon, chief mining officer of Bitfarms, said:“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.”

Related:Bitfarms adopts shareholder rights plan as Riot attempts takeoverRiot Platforms increases stake in Bitfarms

Alongside Bitfarms’ expansion announcement, Riot Platforms also announced its increased ownership stake in Bitfarms to 14%.

The additional 1,432,063 common shares of Bitfarms acquired by Riot represent approximately 0.35% of Bitfarms’ issued and outstanding shares.“Riot currently intends to requisition a special meeting of the Company’s shareholders, at which Riot intends to nominate several well-qualified and independent directors to join the Company’s board of directors.”

Riot’s additional Bitfarms stake acquisition follows the recent recovery from a share price dip sparked by claims the firm would collapse.

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