Energy Economy

16 Nov 2021

Bitcoin Miner Acquires Washington Hydro Plant

16 Nov 2021  by   

Global Bitcoin self-mining company Bitfarms Ltd has announced it is entering the hydropower arena having acquired a 24MW hydropower farm in Washington state, US, while at the same time signing an MoU with the project’s seller to co-develop additional hydropower in the region, increasing total mining capacity up to 99 MW in Washington

To date, 4000 Bitmain S19j Pro miners, capable of 400 petahash/second (PH/s), have already been installed under a 12MW 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 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 24MW acquisition will increase our total mining capacity to 106MW and boost our total hashrate as additional miners are installed.”

Ben Gagnon, Chief Mining Officer of Bitfarms, added: “The facility’s hydro power is expected to cost approximately 25% less than the average cost of power at our Québec 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.”

Bitfarms purchased the 24 MW of infrastructure in Washington, with a dedicated cryptocurrency mining operation powered by low-cost green hydropower, for US$26 million. 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.

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