Bitfarms Ltd., a prominent global player in Bitcoin mining, has strengthened its presence in the United States through the acquisition of a new data center in Sharon, Pennsylvania. This acquisition marks a significant expansion milestone for Bitfarms, establishing its first mega-site in the U.S. with access to up to 120 megawatts (MW) of power.
Strategic Expansion into the U.S. Market
Following the initial announcement on June 13, 2024, Bitfarms has successfully secured 110 MW of capacity at the new site, with plans to activate 30 MW by the end of 2024 and an additional 10 MW by 2025. This will bring the total capacity of the Sharon site to 120 MW. The new site represents a pivotal step in Bitfarms’ aggressive expansion strategy in the U.S., increasing its operational capacity nearly sevenfold.
Ben Gagnon, CEO of Bitfarms, highlighted the strategic importance of the Sharon site, which is located on the Pennsylvania-New Jersey-Maryland (PJM) grid — the largest wholesale electricity market in the U.S. This location provides Bitfarms with access to competitively priced and flexible power options, which are essential for Bitcoin mining and high-performance computing (HPC) applications, such as artificial intelligence.
“For Bitcoin mining specifically, the site is expected to support up to 8 EH/s+ with the latest generation miners,” Gagnon stated, referring to the potential for the site to achieve up to 8 exahashes per second (EH/s) using the latest mining equipment.
Infrastructure and Future Plans
To fully capitalize on the potential of the Sharon site, Bitfarms has already started procuring the necessary infrastructure to bring 30 MW of capacity online by the end of 2024. Gagnon emphasized the benefits of the site’s strategic location, which offers various curtailment, demand-response, and energy trading opportunities. These strategies will help hedge against energy costs and optimize operational expenses.
With its expansion into the Sharon data center, Bitfarms is strategically positioning itself to benefit from the PJM grid’s flexibility and competitive pricing, which provides a distinct advantage for energy-intensive industries like Bitcoin mining. The company is also exploring additional revenue streams through energy trading and demand-response initiatives, such as buying electricity at low prices and selling it back to the grid during peak demand periods, thereby mitigating some of the volatility in energy costs associated with Bitcoin mining.
Rapid Growth and Future Prospects
Bitfarms has been on a rapid growth trajectory. Earlier this year, the company reported a 21% increase in Bitcoin production for June 2024, despite the impact of the halving event, which reduced block rewards by 50%. The company also achieved a 96% year-on-year increase in its installed hashrate and plans to reach a mining capacity of 21 EH/s by the end of 2024 and over 35 EH/s by 2025.
Adding to its expansion efforts, Bitfarms recently announced the 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 geographic footprint, solidifying its position as a leading player in North American Bitcoin mining.
With these strategic moves, Bitfarms is clearly positioning itself for significant growth and influence in the Bitcoin mining industry, and the coming months will reveal just how impactful these developments will be
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