Bitfarms stock surges after raising 2025 guidance to over 35 EH/s
Quick Take
- Bitfarms announced it will develop a “large-scale” mining site in Pennsylvania that will boost capacity, which caused its stock to jump in price.
- A committee also determined the Riot Platforms takeover proposal “significantly undervalues Bitfarms and is not in the best interest of shareholders.”
Bitcoin miner Bitfarms has reiterated the Riot Platforms takeover proposal would not be in the best interest of its shareholders and later announced it entered into an agreement to develop its first large-scale mining site in the United States, which will boost the miner's overall power capacity.
"Situated strategically within the Pennsylvania-New Jersey-Maryland Interconnection, 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," the company said a statement Thursday.
As a result, this raises Bitfarms' 2025 power capacity to 648 megawatts, 170% growth from its current capacity and up 47% from its 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," the company said.
The mining announcement appeared to send Bitfarms' shares higher with the stock trading at $2.78, a more than 14.7% gain at publication time, according to Yahoo Finance.
Takeover drama
Meanwhile, Bitfarms and Riot Platforms continue to trade public statements regarding an attempted takeover.
"The Bitfarms Board formed a Special Committee comprised solely of independent directors to consider ... an unsolicited proposal from Riot received on April 22, 2024," the company said in a statement late Wednesday. "After carefully reviewing and evaluating Riot’s proposal, the Special Committee determined that the proposal significantly undervalues Bitfarms and is not in the best interest of shareholders."
The corporate drama surrounding Riot Platforms' proposed takeover of Bitfarms has been unfolding in recent weeks. On Wednesday, Riot Platforms’ CEO criticized Bitfarms’ supposed plans to block a takeover. The same day, Riot Platforms also announced in a filing it had over the past week purchased nearly 6 million shares of Bitfarms, increasing its stake to 13.1%.
Last month, Riot Platforms attempted to acquire Bitfarms’ shares for roughly $950 million. Bitfarms turned down the offer.
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