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

Bitfarms, which rejected Riot’s takeover offer, announced a project that will significantly increase its power capacity and Bitcoin mining capabilities by 2025.

Bitfarms has signed an agreement to build a power plant with up to 120 MW capacity and lease space in Sharon, Pennsylvania. Following this deal, Bitfarms shares (BITF) are up over 15% today.

Bitfarms, a Bitcoin mining company that has attracted attention during some takeover attempts, reiterated its stance that Riot’s proposed acquisition would not benefit its shareholders. The company also announced plans to build this first major mining site in the United States, which will significantly increase overall power capacity.

“Strategically located on the Pennsylvania-New Jersey-Maryland Interconnection, the largest wholesale electricity market in the United States, and located in a deregulated state, this site offers access to a competitive electricity supply and the opportunity to effectively optimize and maintain energy costs offers, the company said in a statement on Thursday.

Bitfarms’ electricity capacity in 2025 is expected to reach 648 megawatts; This means a 170% increase from its current capacity and a 47% increase from its targeted capacity by the end of 2024.

“Alongside the site’s ability to support 8 EH/s and our recent acquisition of an additional 100 MW in Paraguay, we forecast a 2025 target of over 35 EH/s,” the company said.

Riot and Bitfarms

Recently, Riot Platforms said they would “continue to push” to resolve “serious corporate governance issues” at Bitfarms despite the recently passed “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 June 12 that this move directly contradicts established legal and governance norms.

Later the same day, Riot Platforms announced that it had acquired almost 6 million shares of Bitfarms last week, increasing its ownership to 13.1%.

Riot Platforms made an unsuccessful attempt to buy Bitfarms shares last month for approximately $950 million after Bitfarms rejected the offer.