Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global Bitcoin vertically integrated company, has entered into agreements to acquire 22 MW of hydro power capacity and to lease a site in Baie-Comeau, Quebec. The Baie-Comeau area is home to five hydro-electricity generation facilities with over 5.4 gigawatts nameplate capacity.
“Executing our strategy to cost-effectively expand our operating footprint, we have entered agreements to add reliable hydro power in Quebec,” said Geoff Morphy, CEO of Bitfarms. “Following the closing of the acquisition, we plan to keep the development and build-out costs low by leveraging our experienced Canadian-based team, utilizing a portion of our hardware credits for miner procurement, and applying infrastructure equipment repurposed from the December 2022 sale of our De La Pointe facility. Our in-house design team and electricians will retrofit the existing structure and expect to bring 11 MW online by the third quarter of 2023. We expect to commission the remaining 11 MW during the second half of 2024, providing strategic flexibility around the next BTC halving.”
Bitfarms’ Vice President Corporate Development Phillippe Fortier stated, “Our financial strength and flexibility enabled us to act quickly and secure this accretive opportunity during this period of industry transition. We anticipate this 22 MW increase in capacity will add over 600 PH/s when in full production. With the next BTC halving expected a little over one year from now, this expansion should improve our industry position as we continue to pursue other strategic transactions intended to deliver significant value to our shareholders.”
The Baie-Comeau Agreement Summary
- Procuring an evergreen contract with the local utility for 22 MW of hydro power for US$1.8 million, 40% cash and 60% in Bitfarms common shares.
- Securing a 10-year lease in an industrialized area with the option to purchase at a fixed price throughout the lease term.
- Permitting and zoning for 22 MW deployment with potential for future expansion on the site.
- Common stock portion of purchase price subject to regulatory approval and customary and contractual resale restrictions for up to 6 months, with the final agreement being subject to customary closing conditions.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly traded (NASDAQ/TSX: BITF) Bitcoin mining company. Bitfarms runs vertically integrated mining operations with in-house management and company-owned electrical engineering, installation service, and onsite technical repair. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.
Bitfarms has 10 mining facilities around the world, which are housed in four countries: Canada, the United States, Paraguay, and Argentina. Powered by predominantly environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using renewable, locally based, and often underutilized energy infrastructure.
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