Bitfarms Ltd. (NASDAQ: BITF) has observed a notable increase in its share price following the announcement of a significant new agreement. As of the latest pre-market session, BITF stock had risen by 8.54%, reaching $3.05.
Strategic Expansion In Pennsylvania
Bitfarms (BITF) has disclosed an agreement to develop up to 120 MW of power capacity and lease a site in Sharon, Pennsylvania. This location is strategically placed within the Pennsylvania-New Jersey-Maryland Interconnection (PJM), the largest wholesale electricity market in the United States.
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The site’s position in a deregulated state provides access to competitive electricity supply, offering Bitfarms the opportunity to optimize and hedge energy costs effectively. PJM’s abundant energy supply is rapidly incorporating renewable capacity, significantly aiding grid decarbonization.
The power supply dynamics provide load flexibility suitable for Bitcoin mining and opportunities for participation in demand response and other curtailment programs, enabling Bitfarms to enhance its corporate electricity price and diversify its revenue streams further.
Enhancing Operational Footprint
In line with its strategy to expand its operating footprint cost-effectively in the U.S., Bitfarms has entered into an agreement for flexible power trading within the PJM. Utilizing its operational excellence and farm design expertise, Bitfarms is well-positioned to optimize this site, facilitating efficient growth.
Bitfarms’ industry position is strengthened and its geographical diversification is improved by this U.S. growth.
With the recent acquisition of an additional 100 MW in Paraguay, the site’s capacity to sustain 8 EH/s lends credence to Bitfarms’ forecast of over 35 EH/s for 2025. Bitfarms will continue to update its contracted power capacity and 2025 EH/s target as additional opportunities materialize, consistently pursuing strategic ventures to deliver significant value to shareholders.
Commitment To Grid Reliability And Community
The agreement signifies Bitfarms’ entry into a largely deregulated and curtailment-friendly U.S. power market. Bitfarms will actively oversee Bitcoin mining operations and participate in PJM’s demand response programs to generate additional revenue and provide reliability services to the grid.
This initiative represents a substantial growth opportunity for Bitfarms. It is anticipated that the current structure will undergo retrofitting, with 12 MW expected to be online in Q4 2024 and the full capacity in the second part of 2025.
