As a researcher with experience in the Bitcoin mining industry, I’m closely following the developments between Riot and Bitfarms. It’s clear that Bitfarms is determined to expand its operations and increase its power capacity significantly, despite the takeover bid from Riot.
Following Riot’s unsuccessful attempt to acquire Bitfarms, the company unveiled plans to expand its power capability and Bitcoin mining potential by 2025.
Bitfarms announced a deal to build a power plant capable of generating up to 120 MW and secured a site in Sharon, Pennsylvania for the project. Following this news, Bitfarms’ stock (BITF) experienced a significant surge, increasing by over 15% on the day.
Bitfarms, a Bitcoin mining firm drawing interest due to potential buyout bids, has reiterated that Riot’s takeover proposal would not serve the best interests of its shareholders. Moreover, the company announced plans to set up its first significant mining operation in the US, expanding its total power capacity substantially.
As a crypto investor, I’d interpret that statement as: “I’m based in a location that’s part of the biggest wholesale electricity market in the US, which is the Pennsylvania-New Jersey-Maryland Interconnection. Since it’s a deregulated state, I have the freedom to choose my energy supplier. This gives me an edge by allowing me to access a competitive electricity market and effectively manage and protect my energy costs through optimization and hedging strategies.”
As an analyst, I would express it this way: By the year 2025, my analysis projects that Bitfarms’ power capacity will have expanded to reach an impressive 648 megawatts. This represents a significant jump of approximately 170% from its current capacity and a noteworthy 47% increase compared to the targeted capacity set for the end of 2024.
The company announced that its website can handle a computing power of 8 EH/s, and with the new 100 MW energy source in Paraguay we have acquired, we anticipate reaching over 35 EH/s by 2025.
Riot vs. Bitfarms
As a researcher, I’ve taken note of Riot Platforms’ commitment to tackling the significant corporate governance concerns at Bitfarms, even in light of their newly implemented “poison pill” strategy.
As an analyst, I’d rephrase it like this: Bitfarms recently announced the implementation of a Rights Plan to safeguard against unwanted takeover bids. However, Riot Platforms expressed their disagreement with this strategy in a press release on June 12th, stating that it goes against established legal and governance conventions.
On the same day, Riot Platforms revealed that they had purchased approximately 6 million shares of Bitfarms within the last week. As a result, their shareholding in the company increased to 13.1%.
Last month, Bitfarms declined Riot Platforms’ bid to purchase their shares for around $950 million.
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2024-06-14 03:20