Bitfarms Closes In on 110 MW, Takes Ownership of New US Data Center

Bitfarms Ltd., a global leader in Bitcoin mining, has officially expanded its footprint in the United States by acquiring a new data center in Sharon, Pennsylvania.

This acquisition, which follows the initial announcement on June 13, 2024, marks a significant milestone for Bitfarms as it establishes its first mega-site in the U.S., securing 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 bring an additional 10 MW online by 2025, raising the total site capacity to 120 MW.

Bitfarm Coming Big Into the U.S. Market

The Sharon site represents a critical development in Bitfarms’ aggressive U.S. expansion strategy, increasing its operational capacity nearly sevenfold.

Bitfarms’ CEO, Ben Gagnon, emphasized in a statement the strategic importance of this new site and its location on the Pennsylvania-New Jersey-Maryland (PJM) grid — the largest wholesale electricity market in the U.S.

This position provides the company access to competitively priced and flexible power options, which are particularly attractive 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 detailed the massive potential for Bitcoin mining at the site, projecting support for up to 8 exahashes per second (EH/s) using the latest generation of mining equipment.

To capitalize on the site’s potential, Bitfarms has already begun ordering the necessary infrastructure to bring 30 MW of capacity online by the end of 2024.

“Our team has already ordered the necessary equipment, and our current expectation is to bring 30 MW of capacity online by year-end 2024.”

Gagnon also pointed out the site’s location advantages, which include various curtailment, demand-response, and energy trading opportunities that will help hedge against energy costs and optimize operational expenses.

Is Bitfarm Growing Too Fast?

With the acquisition of the Sharon data center, Bitfarms is expanding its U.S. presence and strategically positioning itself to benefit from the largest energy market.

The PJM grid’s flexibility and competitive pricing provide a unique advantage for energy-intensive industries like Bitcoin mining.

Bitfarms aims to leverage these benefits for its Bitcoin mining operations while also exploring additional revenue streams through energy trading and demand-response initiatives.

By integrating into a significant energy market, the company opens up possibilities for new ventures in areas such as energy arbitrage.

For example, it could buy low electricity prices and sell back to the grid during peak demand periods.

Such strategies allow Bitfarms to mitigate some of the inherent volatility in energy costs associated with Bitcoin mining.

Earlier this year, Bitfarms reported a 21% increase in Bitcoin production for June 2024 despite the halving event’s impact, which reduced block rewards by 50%.

The company achieved a 96% year-on-year increase in its installed hashrate. It 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.

The company also recently announced its acquisition of rival 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, enhancing its energy portfolio and geographic footprint and positioning it as a leading player in North American Bitcoin mining.

With all these strategic moves, Bitfarm is definitely on to something big, and we can only watch and see how big it is.