After rejecting Riot's takeover bid, Bitfarms announced a project to significantly increase its energy capacity and Bitcoin mining capabilities by 2025.
Bitfarms has entered into an agreement to build a 120-megawatt power plant and lease a site in Sharon, Pennsylvania. Following this agreement, Bitfarms (Betf) rose more than 15% today.
Bitfarms, a Bitcoin mining company gaining attention amid some takeover attempts, has reiterated its position that Riot's proposed takeover would not benefit its shareholders. In addition, the company revealed plans to establish its first major mining site in the United States, which will significantly increase its overall energy capacity.
“This site is strategically located within the Pennsylvania-New Jersey-Maryland interconnector, the largest wholesale electricity market in the United States, is located in a deregulated state, provides access to a competitive electricity supply and provides the opportunity to effectively optimize and hedge energy costs,” the company said. He said in a statement Thursday.
Bitfarms' 2025 power capacity is expected to reach 648 MW, which represents a 170% increase over its current capacity and a 47% increase over its target capacity by the end of 2024.
“With the site’s capacity to support 8 EH/s, coupled with our recent acquisition of an additional 100 MW in Paraguay, we expect 2025 guidance of more than 35 EH/s,” the company said.
Riot vs Bitfarms
Recently, Riot Platforms said it would “continue to push” to address “serious corporate governance issues” at Bitfarms despite the recently approved “poison pill.”
Bitfarms recently implemented a rights plan (or “poison pill”) as a defense against potential takeover offers. However, Riot Platforms stated in a press release on June 12 that the move is in direct conflict with established legal and governance standards.
Later the same day, Riot Platforms revealed that it had acquired nearly 6 million shares of Bitfarms stock 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, with Bitfarms rejecting the offer.