Bitfarms Ltd. Expands into US Market, Riot Platforms Increases Stake
Summary:
Bitcoin mining company, Bitfarms Ltd., is expanding its operations into the United States by establishing a new site in Sharon, Pennsylvania. The move aims to bolster Bitfarms' operational influence and optimize geographical diversification. The expansion will also allow them to participate in demand response programs and earn additional revenue. Concurrently, Riot Platforms, Inc. increased its ownership stake in Bitfarms to 14%.
Bitfarms Ltd., a Bitcoin mining corporation, declared its entry into the American market on June 14 by setting up a branch in Sharon, Pennsylvania. As per the official statement from the company, there's a plan to create a power capacity of up to 120 megawatts (MW) in the area. This site within the Pennsylvania-New Jersey Maryland (PJM) Interconnection provides Bitfarms with potential to access economical electricity rates and the chance to balance and cushion energy expenditures. This broadening of their services is intended to increase Bitfarms’ operational influence, underpin an 8 EH/s capacity by 2025, and ramp up the company’s total power capacity to 648 MW, which marks a rise of 170% from the current capacity. Nicolas Bonta, Bitfarms’ Chairman and Interim CEO, gave his insight on the expansion:“We have made an arrangement for adaptable power trading within the PJM as part of our tactic to expand our operating influence in the U.S. cost-effectively. This not only bolsters our position in the industry but also optimizes our geographical diversification.” The expansion in Sharon allows Bitfarms to operate in a deregulated state, thereby enabling the firm to engage in demand response and other curtailment initiatives. In reference to the expansion’s diversification of revenue stream accessibility, Bitfarms’ Chief Mining Officer, Ben Gagnon, stated: “We will actively oversee and control our Bitcoin mining operations and take part in PJM’s demand response programs to earn additional revenue and contribute reliability services to the grid.” Concurrently with the news of Bitfarms’ expansion, Riot Platforms, Inc. reported an increase in its ownership stake in Bitfarms Ltd. to 14%. Riot acquired an additional 1,432,063 common shares of Bitfarms, representing roughly 0.35% of the issued and outstanding shares of Bitfarms. “Riot is planning to request a special meeting of the Company’s shareholders, during which it has intentions to nominate several suitably qualified and independent directors to join the board of directors of the Company.” This latest stake acquisition by Riot succeeds its recovery from a drop in share price, triggered by speculations of a potential collapse.
Published At
6/14/2024 11:11:25 AM
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