Bitfarms Ltd., a Bitcoin mining company, has made a significant move to expand its operations in the United States by acquiring its first mega-site in Sharon, Pennsylvania.
This marks a major milestone for the company, boosting its U.S. presence nearly sevenfold from 20 megawatts (MW) to 140 MW of power capacity.
On August 27, 2024, Bitfarms announced that it had officially taken control of a new data center in Sharon, Pennsylvania, its first large-scale site in the U.S. This acquisition is a key step in Bitfarms’ aggressive growth strategy and significantly expands its footprint in North America.
“This site represents Bitfarms’ first mega-site in the U.S. with access to up to 120 MW,” said Ben Gagnon, CEO of Bitfarms. “This site increases our U.S. presence nearly sevenfold and kickstarts our aggressive U.S. growth plan.”
The Sharon data center is strategically located in the Pennsylvania-New Jersey-Maryland (PJM) grid, the largest wholesale electricity market in the United States. This location is advantageous for several reasons.
The PJM grid provides access to competitively priced and flexible power, which is crucial for energy-intensive operations like Bitcoin mining, high-performance computing (HPC), and artificial intelligence (AI) applications.
The company expects the site to support up to 8 exahashes per second (EH/s) using the latest mining technology.
Bitfarms has already secured 110 MW of the site’s capacity, and the company has plans to bring 30 MW online by the end of 2024. Additionally, they have signed a letter of intent to lease an extra 10 MW site, which would increase the total capacity to 120 MW by 2025. Gagnon stated:
“Our team has already ordered the necessary equipment, and our current expectation is to bring 30 MW of capacity online by year-end 2024.”
The acquisition of the Sharon data center is only one part of Bitfarms’ larger plan to grow its operations in the U.S. market. Bitfarms recently acquired Stronghold Digital Mining, a $175 million deal that will add 307 MW of power capacity to its portfolio.
This acquisition, which is expected to close in the first quarter of 2025, will help Bitfarms reach a total capacity of 950 MW by the end of 2025.
The company also plans to diversify beyond Bitcoin mining, integrating power generation and expanding into high-performance computing and artificial intelligence.
Bitfarms’ expansion strategy goes beyond just increasing its Bitcoin mining capacity. By situating itself within the PJM grid, the company gains access to energy arbitrage opportunities, allowing it to buy electricity at low prices and sell it back to the grid during peak demand periods.
This strategy helps mitigate the volatility of energy costs often associated with Bitcoin mining.
This means that the company is also looking to explore other revenue streams, including energy trading and demand-response initiatives, which could further enhance its financial stability and growth prospects.
Founded in 2017, Bitfarms operates 12 Bitcoin mining centers across four countries: Canada, the United States, Paraguay, and Argentina. The company prides itself on using sustainable and often underutilized energy infrastructure, such as hydro-electric power, to run its mining operations.
Related: Canada, Texas, And Paraguay | Changing The Narrative On Bitcoin Mining
With two more data centers currently under development, Bitfarms remains committed to its goal of expanding its operations while minimizing its environmental footprint.
With these strategic moves, Bitfarms is positioning itself as a leading player in the North American Bitcoin mining market. The company’s plans to expand its capacity and diversify its operations reflect a forward-looking approach in a rapidly evolving industry.
Gagnon also stated that Bitfarms aims to diversify beyond Bitcoin mining to increase long-term shareholder value by integrating vertically with power generation and enhancing energy trading capabilities.
He added that the company also plans on securing two promising locations for high-performance computing and artificial intelligence. All of these plans offer significant multi-year growth potential.
Bitfarms has demonstrated resilience in the face of challenges such as reduced mining rewards and market volatility. The company reported a 21% increase in bitcoin production for June 2024, despite the halving event earlier in the year that cut block rewards by 50%.
The acquisition of the Sharon data center and the broader U.S. expansion strategy marks a significant chapter in Bitfarms’ growth story.
By capitalizing on competitive energy markets and diversifying its operations, Bitfarms is set to solidify its standing in the global Bitcoin mining landscape.
