Bitfarms Ltd. Expands to Pennsylvania with 120 MW Power Capacity Site
Bitfarms Ltd. (Nasdaq/TSX: BITF), a global Bitcoin mining company, has struck a deal to establish a 120 MW power capacity site in Sharon, Pennsylvania. The move is part of the company’s plan to achieve a hash rate exceeding 35 EH/s by 2025.
Strategic Advantages of the Location
The new site’s strategic location within the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, the largest wholesale electricity market in the United States, offers several benefits, including:
- Competitive electricity supply
- Opportunities to optimize and hedge energy costs
- Rapid addition of renewable capacity in the PJM market, contributing to grid decarbonization
Perfect Environment for BTC Mining
This environment is ideal for Bitcoin (BTC) mining due to factors such as load flexibility and participation in demand response programs, which can help Bitfarms diversify its revenue streams.Operating within this region provides a competitive edge and allows Bitfarms to enhance its geographical diversification.
Expansion and Operational Approach
As Nicolas Bonta, Chairman and Interim CEO of Bitfarms, pointed out, the U.S. expansion is strategically crucial for the company. The site’s capacity to support 8 EH/s, combined with Bitfarms’ recent acquisition of an extra 100 MW in Paraguay, is projected to result in over 35 EH/s by 2025. The benefits of operating in a deregulated and curtailment-friendly U.S. power market were highlighted by Ben Gagnon, Chief Mining Officer.
Strategic Monitoring and Management
Bitfarms plans to actively monitor its Bitcoin mining operations in the U.S. and participate in demand response programs to generate additional revenue while providing reliability services to the grid.
Timeline and Financial Details of Development
Construction at the Sharon site will commence immediately, with 12 MW expected to be operational by Q4 2024 and the remaining capacity by the second half of 2025. The project includes:
- Five-year lease of an 11,200 square feet warehouse
- Options to renew for up to 17 years and purchase at fair market value
- Development costs similar to recent projects in Canada and Paraguay
Positive Environmental and Economic Impact
Philippe Fortier, SVP of Corporate Development, emphasized the positive long-term effects of the PJM sites. The region’s rapid replacement of coal-powered plants is significant in reducing greenhouse gas emissions in the U.S., making the opportunity both environmentally and economically sustainable.
About Bitfarms Ltd.
Established in 2017, Bitfarms is a global Bitcoin mining company with vertically integrated mining farms. The company operates 12 mining facilities across Canada, the United States, Paraguay, and Argentina, primarily powered by hydro-electricity and long-term power contracts. Bitfarms is committed to utilizing sustainable energy infrastructure for its operations.
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