Bitfarms Expands in the U.S. with New 110 MW Data Center Acquisition

Bitfarms Ltd., a global leader in Bitcoin mining, has made a significant move into the U.S. market by acquiring a new data center in Sharon, Pennsylvania. This acquisition, first announced on June 13, 2024, marks the company’s first mega-site in the United States, providing access to up to 120 megawatts (MW) of power.

Expansion into the U.S. Market

The Sharon data center represents a critical step in Bitfarms’ aggressive expansion strategy in the U.S., significantly increasing its operational capacity. The company has secured 110 MW of power with plans to bring 30 MW online by the end of 2024 and potentially an additional 10 MW by 2025, which would raise the site’s total capacity to 120 MW.

Bitfarms CEO, Ben Gagnon, highlighted the strategic importance of the Sharon site, particularly its location on the Pennsylvania-New Jersey-Maryland (PJM) grid, the largest wholesale electricity market in the U.S. This positioning allows Bitfarms to access competitively priced and flexible power options, ideal for Bitcoin mining and other high-performance computing (HPC) applications, including artificial intelligence.

“For Bitcoin mining specifically, the site is expected to support up to 8 EH/s+ with the latest generation miners,” Gagnon noted, referring to the site’s potential to achieve up to 8 exahashes per second (EH/s) using state-of-the-art mining equipment.

Strategic Positioning and Future Plans

Bitfarms is preparing the necessary infrastructure to bring 30 MW of capacity online by the end of 2024. The location of the Sharon site offers several advantages, including opportunities for curtailment, demand-response, and energy trading that can help mitigate energy costs and optimize operational expenses.

With the Sharon data center acquisition, Bitfarms is strategically positioned to benefit from the PJM grid’s flexibility and competitive pricing. The company plans to leverage these benefits to enhance its Bitcoin mining operations and explore additional revenue streams through energy trading and demand-response initiatives. These strategies could include energy arbitrage, where Bitfarms buys electricity at low prices and sells it back to the grid during peak demand periods, thus reducing the volatility associated with energy costs in Bitcoin mining.

Growing Capacity and Strategic Acquisitions

Earlier this year, Bitfarms reported a 21% increase in Bitcoin production for June 2024, despite the halving event that reduced block rewards by 50%. The company has also achieved a 96% year-on-year increase in its installed hashrate and is targeting a mining capacity of 21 EH/s by the end of 2024 and over 35 EH/s by 2025.

Bitfarms is not only expanding its operational capacity but also its geographic footprint. The company recently announced its acquisition of Stronghold Digital Mining, a $175 million deal involving stock and debt financing. Expected to close in the first quarter of 2025, this acquisition will add 307 megawatts of power capacity to Bitfarms’ operations, further enhancing its energy portfolio and solidifying its position as a leading player in North American Bitcoin mining.

With these strategic moves, Bitfarms is poised for significant growth in the U.S. market. As the company continues to expand and innovate, the Bitcoin mining community will be watching closely to see how big Bitfarms can become.