Bitfarms to Develop 120 MW Bitcoin Mining Facility in U.S., Projects 35 EH/s by 2025

Bitfarms Ltd. (Nasdaq/TSX: BITF), a global vertically integrated Bitcoin (BTC) mining company, has announced a significant expansion in the United States. The company has entered into an agreement to develop a 120 MW power capacity and lease a site in Sharon, Pennsylvania, according to GlobeNewswire.

Strategic Location and Expansion Plans

The new site is strategically located within the Pennsylvania-New Jersey-Maryland Interconnection (PJM), the largest wholesale electricity market in the U.S. This location offers access to competitive electricity supply and opportunities to optimize and hedge energy costs. PJM's abundant energy supply, rapidly increasing renewable capacity, and load flexibility make it ideal for Bitcoin mining. The site is expected to support 8 EH/s in 2025 with the deployment of 600 PH/s in 2024.

Company's Vision and Future Projections

Nicolas Bonta, Chairman and Interim CEO of Bitfarms, emphasized the strategic importance of this 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,” Bonta stated. He highlighted that this U.S. expansion enhances Bitfarms' geographical diversification and increases its 2025 power capacity to 648 MW, representing a 170% growth from the current capacity. The company projects 2025 guidance of over 35 EH/s, considering recent acquisitions and ongoing expansions.

Operational and Environmental Benefits

Ben Gagnon, Chief Mining Officer, noted the benefits of operating in a deregulated and curtailment-friendly U.S. power market. Bitfarms plans to actively participate in PJM’s demand response programs, earning additional revenue and providing reliability services to the grid. “Providing a flexible base load for PJM to call upon in hours of need is a Bitcoin mining operations responsibility to the electric grid and community,” Gagnon added.

Development Timeline and Financial Implications

Construction at the Sharon site will commence immediately following the closing of the agreement. The development and build-out costs are expected to be similar to recent deployments in Canada and Paraguay. The existing structure will be retrofitted, with plans to bring 12 MW online by Q4 2024 and the remaining capacity online in the second half of 2025.

Long-term Prospects and Environmental Sustainability

Philippe Fortier, SVP of Corporate Development, expressed confidence in the long-term benefits of the Sharon site and other prospective PJM sites. He highlighted the environmental and economic sustainability of these locations, noting PJM’s rapid replacement of coal-powered plants as a significant contributor to reducing greenhouse gas emissions in the U.S. Fortier indicated that Bitfarms is actively assessing opportunities to expand within the PJM region.

Agreement Terms and Company Overview

The agreement includes access to development potential of up to 120 MW of power, paid by the issuance of 1,532,745 Bitfarms common shares, and a five-year lease with options to renew for a total of 17 years. Bitfarms, founded in 2017, currently operates 12 Bitcoin mining facilities across four countries: Canada, the United States, Paraguay, and Argentina. The company is committed to using sustainable and underutilized energy infrastructure, primarily powered by hydro-electric and long-term power contracts.

For more information, visit GlobeNewswire.