Bitfarms Enters into Agreement to Develop 120 MW in U.S.; Provides 2025 Guidance of Over 35 EH/s

Source: www.gulfoilandgas.com 6/13/2024, Location: North America

-First U.S. large scale site supports 8 EH/s in 2025 with deployment of 600 PH/s in 2024-
-Strategically located in PJM Interconnection market, providing access to low-cost, flexible power-
-Increases 2025 power capacity to 648 MW, up 170% from current 240 MW-
-Company establishes 2025 guidance of over 35 EH/s-

Bitfarms Ltd., a global vertically integrated Bitcoin mining company, announced an agreement to develop up to 120 MW of power capacity and lease a site in Sharon, Pennsylvania.

Situated strategically within the Pennsylvania-New Jersey-Maryland Interconnection (PJM), the largest wholesale electricity market in the U.S., and located in a deregulated state, this site offers access to competitive electricity supply and provides the opportunity to optimize and hedge energy costs effectively. PJM enjoys an abundant energy supply that is rapidly adding renewable capacity and significantly contributing to the decarbonation of the grid. The power supply dynamics offer load flexibility suitable for Bitcoin mining, along with opportunities for participation in demand response and other curtailment programs, enabling Bitfarms to improve its corporate electricity price and further diversify its revenue streams.

“Executing on our strategy to cost-effectively expand our operating footprint in the U.S., we have entered into an agreement for flexible power trading within the PJM,” said Nicolas Bonta, Chairman and Interim CEO. “Leveraging our operational excellence and farm design expertise, we’re poised to optimize this site, facilitating efficient growth. This U.S. expansion not only strengthens our position in the industry but also enhances our geographical diversification. In addition, it raises our 2025 power capacity to 648 MW, 170% growth from current capacity and 47% growth from targeted year-end 2024 capacity. 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. As additional opportunities in our pipeline come to fruition, we will update both our contracted power capacity and our 2025 EH/s target. We remain committed to pursuing similar strategic ventures aimed at delivering significant value to our shareholders,” concluded Mr. Bonta.

“This marks Bitfarms’ debut in a largely de-regulated and curtailment-friendly U.S. power market,” stated Ben Gagnon, Chief Mining Officer. “Bitfarms will actively monitor and manage our Bitcoin mining operations and participate in PJM’s demand response programs to earn additional revenue and provide reliability services to the grid. Providing a flexible base load for PJM to call upon in hours of need is a Bitcoin mining operations responsibility to the electric grid and community. We look forward to working with our power partners and the local community to facilitate uninterrupted service during periods of grid stress.”

Construction at the site will commence immediately following the closing, with development and build-out costs anticipated to be similar to recent deployments in Canada and Paraguay. This represents a significant growth opportunity for Bitfarms. The existing structure will be retrofitted with the expectation of bringing 12 MW online in Q4 2024 and the remaining load online in the second half of 2025.

Philippe Fortier, SVP of Corporate Development, stated, “We are confident that Sharon and other similar prospective PJM sites will provide long-term access to low-cost U.S. energy and flexible power trading options. Additionally, these locations boast milder temperatures and climates than Texas. Importantly, PJM’s rapid replacement of coal powered plants is among the largest contributors to the reduction of GHG in the U.S., rendering the opportunity both environmentally and economically sustainable. Given these significant advantages, we are actively engaged in assessing opportunities to expand our presence within the PJM region.”

Terms of the Agreement
Access to development potential up to 120 MW of highly strategic and flexible power, 100% paid by the issuance of 1,532,745 Bitfarms common shares.
Five-year lease in an industrialized area in Sharon, including a 11,200 square feet warehouse, with options to renew for a total of 17 years and purchase at fair market value throughout the lease term.
Immediate capacity for 12 MW with development capacity up to 120 MW in 2025.


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