Bitfarms stock up 15% after anouncing large-scale mining site

Bitfarms stock up 15% after anouncing large-scale mining site

After rejecting Riot’s takeover bid, Bitfarms announced a project to significantly increase its power capacity and Bitcoin mining capabilities by 2025.

Bitfarms entered into an agreement to construct a power plant with a capacity of up to 120 MW and to lease a location in Sharon, Pennsylvania. After this agreement, Bitfarms shares (BITF) rose over 15% today. 

Bitfarms, a Bitcoin mining company garnering attention amidst some takeover attempts, has restated its position that Riot’s proposed takeover would not benefit its shareholders. The company additionally revealed plans to establish this first major mining site in the United States, which will significantly increase its overall power capacity.

“Situated strategically within the Pennsylvania-New Jersey-Maryland Interconnection, the largest wholesale electricity market in the U.S., and located in a deregulated state, this site offers access to a competitive electricity supply and provides the opportunity to optimize and hedge energy costs effectively,” the company said in a statement Thursday.

Bitfarms’ power capacity for 2025 is expected to reach 648 megawatts, representing a 170% increase from its current capacity and a 47% increase from its targeted capacity by the end of 2024.

“With the site’s ability to support 8 EH/s, alongside our recent acquisition of an additional 100 MW in Paraguay, we project 2025 guidance of over 35 EH/s,” the company said.

Riot vs. Bitfarms

Recently, Riot Platforms said they “will continue to push” to address the “serious corporate governance issues” at Bitfarms despite the recently adopted “poison pill.”

Bitfarms recently implemented a Rights Plan (or “poison pill”) as a defense against potential takeover bids. However, Riot Platforms stated in a press release on Jun. 12 that this move directly contradicts established legal and governance norms.

Later on that same day, Riot Platforms disclosed that it had acquired almost 6 million shares of Bitfarms over the past week, boosting its ownership to 13.1%.

Riot Platforms made a failed attempt to acquire Bitfarms’ shares for approximately $950 million last month, as Bitfarms rejected the offer.

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