NEWS - NEW FARM IN USFYI, GLTA
Bitfarms Acquires 24 Megawatts of Hydro Power in the U.S. and Enters into Memorandum of Understanding to Expand Up to 99 MW
- The 24-Megawatt Facility is Capable of 620 Petahash/Second -
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated August 16, 2021 to its short form base shelf prospectus dated August 12, 2021.
TORONTO, Ontario and BROSSARD, Qubec, Nov. 11, 2021 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin self-mining company, acquired a 24 Megawatt (MW) hydro power farm in Washington state, USA. To date, 4,000 Bitmain S19j Pro miners, capable of 400 petahash/second (PH/s), have already been installed under a 12 MW hosting agreement which began in July 2021 and was terminated upon the closing of the acquisition. Bitfarms plans to house approximately 6,200 Bitmain S19j Pro miners, capable of 620 PH/s, in the facility. Bitfarms has also entered into a Memorandum of Understanding (MOU) with the seller to co-develop additional farms in the area, increasing total mining capacity up to 99 MW in Washington.
“Bitfarms strategy is to expand our operating footprint while maintaining cost effective production rates. By diversifying our decentralized mining portfolio, we prioritize locations with cost-effective electricity that allow for further growth and expansion,” said Emiliano Grodzki, CEO of Bitfarms. “The Washington farm meets all these criteria. With this acquisition, we enter the United States and continue our global expansion to 10 farms in operation or under development in four countries. The initial 24 MW acquisition will increase our total mining capacity to 106 MW and boost our total hashrate as additional miners are installed.”
Ben Gagnon, Chief Mining Officer of Bitfarms, stated, “The facility’s hydro power is expected to cost approximately 25% less than the average cost of power at our Qubec farms, making it the most cost-effective source of power currently in our portfolio and reducing our corporate wide average to below 4 US cents/kwh. This low-cost power combined with the industry leading efficiency of the Bitmain S19j Pro means 6,200 miners in Washington could yield nearly 3.7 bitcoin per day at a cost of approximately US$4,000 per bitcoin when all miners are installed, based upon prevailing mining difficulty levels and costs. We are very excited to continue to complete strategic transactions that deliver significant value to our shareholders.”
Washington Purchase and Additional MOU
Bitfarms purchased the 24 MW of infrastructure in Washington, with a dedicated cryptocurrency mining operation powered by low-cost green hydro power, for total consideration of US$26 million: US$23 million in cash and US$3 million in common shares based on a price of US$7.17, for a total of 414,508 shares.
Bitfarms entered into a hosting agreement for 12 MW with the seller in July 2021, and installation of miners and production has taken place since that time. This transaction replaces and results in the termination of Bitfarms’ only hosting agreement.
Scott Tillman of Pi Consulting, LLC advised the seller in consultation with Arca and Bruce Benson, who served as legal counsel.
Eric Klein of Klein Advisory Services Inc. served as financial advisor on the transaction to Bitfarms and Katten Muchin Rowenman LLP and Peterson McVicar LLP served as legal advisors.