Bitfarms Ltd., a prominent Bitcoin mining company, has expanded its operations in the United States by acquiring a new data center in Sharon, Pennsylvania. This acquisition, announced in June 2024, is significant as it marks Bitfarms’ first mega-site in the U.S. and grants access to up to 120 megawatts (MW) of power. The company has closed on 110 MW with plans to activate 30 MW by the end of 2024 and potentially add another 10 MW by 2025, boosting the total site capacity to 120 MW. This move represents a key milestone in Bitfarms’ aggressive expansion strategy in the U.S., increasing their operational capacity nearly sevenfold.
The CEO of Bitfarms, Ben Gagnon, highlighted the strategic importance of the new Sharon site, located on the Pennsylvania-New Jersey-Maryland (PJM) grid, the largest wholesale electricity market in the U.S. This position offers access to competitively priced and flexible power options, ideal for Bitcoin mining and other high-performance computing applications like artificial intelligence. Gagnon emphasized that the site is expected to support up to 8 exahashes per second (EH/s) using the latest mining equipment. The company has already begun ordering infrastructure to bring 30 MW of capacity online by the end of 2024 and is exploring various energy trading opportunities to optimize operational expenses.
By expanding into the U.S. market and strategically positioning themselves in the PJM grid, Bitfarms aims to leverage the region’s competitive pricing and flexible power options for their Bitcoin mining operations. They also plan to explore additional revenue streams through energy trading and demand-response initiatives. The company’s integration into a major energy market opens up opportunities for ventures in areas such as energy arbitrage, allowing them to buy low electricity prices and sell back to the grid during peak demand periods to mitigate energy cost volatility.
Despite challenges like the halving event’s impact on block rewards, Bitfarms reported a 21% increase in Bitcoin production for June 2024 and achieved a 96% year-on-year increase in its installed hashrate. The company announced plans for further expansion, aiming to reach a mining capacity of 21 EH/s by the end of 2024 and over 35 EH/s by 2025. Bitfarms recently acquired rival Stronghold Digital Mining in a $175 million deal involving stock and debt financing, adding 307 megawatts of power capacity to their operations. This acquisition enhances Bitfarms’ energy portfolio and geographic footprint, positioning them as a prominent player in North American Bitcoin mining.
With these strategic moves, including the acquisition of the Sharon data center, and the upcoming acquisition of Stronghold Digital Mining, Bitfarms is primed for significant growth in the Bitcoin mining sector. The company’s expansion into the U.S. market and its exploration of energy trading opportunities demonstrate a strong strategic vision for future growth and sustainability. Bitfarms’ focus on leveraging energy market advantages and increasing operational capacity positions them as a key player in the evolving landscape of cryptocurrency mining.
