Bitfarms, a global vertically integrated Bitcoin mining company, has reported a notable 34% month-on-month (MoM) increase in earnings, attributed to recent fleet upgrades and expansion efforts. According to Bitfarms’ July production report, released on August 1, the company mined 253 BTC in July, valued at approximately $16.2 million at current market prices, up from 189 BTC (about $12.1 million) in June.
The company has experienced a 62% increase in Bitcoin mined per month since the Bitcoin halving event in April, demonstrating its operational expertise and enhanced efficiency. Bitfarms’ CEO, Ben Gagnon, expressed confidence in the company’s growth trajectory, stating, “As we continue to execute on the fleet upgrade program, we are gaining market share and driving increasing amounts of Bitcoin mined month-over-month.”
Despite an 8.4% increase in Bitcoin difficulty in July, which impacted mining efficiency, Bitfarms successfully earned 253 BTC, a rise from 189 BTC in June but a decrease from 378 BTC in July 2023. The company’s operational hashrate reached 11.1 EH/s by the end of July, reflecting a 109% year-over-year increase and a 7% month-over-month rise. The average operational hashrate was 10.3 EH/s, up 36% from June.
Financially, Bitfarms sold 142 BTC out of the 253 BTC earned, generating $8.6 million in proceeds. The company’s Treasury now holds 1,016 BTC, valued at $67.2 million based on a BTC price of $66,100. Bitfarms’ Chief Financial Officer, Jeff Lucas, emphasized that being fully funded reduces the company’s near-term capital expenditure requirements, allowing it to apply more excess cash flow from operations to building its HODL. In July, the company added 111 Bitcoin to its HODL.
Bitfarms has committed $240 million to triple its hashrate by adding 88,000 new miners, a bold move to counteract the financial impact of the recent Bitcoin halving. This significant investment comes in the wake of a 29% year-over-year drop in earnings and a 6% decrease from the previous month, post-halving. Despite these financial challenges, Bitfarms has demonstrated positive momentum through strategic expansions and operational improvements.
In Québec, Bitfarms is progressing with its expansion at the Baie-Comeau site. The facility is set to increase its capacity by 12 MW, reaching a total of 22 MW, with this upgrade expected to be operational by September 1, 2024. In Paraguay, the Paso Pe site is energized and hashing, while construction at the Yguazu site continues, with four new warehouses under development.
However, Bitfarms is facing challenges in meeting its target hashrate of 12 EH/s. CEO Emiliano Gagnon highlighted that the current hashrate is below expectations due to overheating issues with a batch of approximately 3,000 T21 miners, which account for about 700 PH/s of the company’s capacity. To address these issues, Bitfarms is collaborating with its hardware provider, Bitmain. The problematic miners are being replaced at Bitmain’s expense, with new machines expected to arrive and be installed within three weeks.
The recent investment and operational strategies reflect Bitfarms’ commitment to overcoming the financial setbacks caused by the Bitcoin halving. The company’s focus on expansion and resolving hardware issues positions it for potential growth and recovery. However, its ongoing tussle with Riot Platforms remains a concern. Bitfarms recently adopted a new ‘poison pill’ strategy following the Ontario Capital Markets Tribunal’s termination of its initial plan to fend off a hostile takeover attempt by rival Riot Platforms.
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