Sokipiriye Dokubo
Bitfarms, a Bitcoin mining company, saw a significant boost in its Bitcoin production in June, mining 21% more than the previous month. This surge was fueled by an increase in its hashrate to 10.4 exahashes per second (EH/s), a 39% rise from the previous month.
Despite facing takeover attempts from Riot Platforms, Bitfarms mined a total of 189 Bitcoin in June, selling 134 for $8.8 million. The company currently holds 905 Bitcoin valued at $57 million. However, it experienced a 51% decline in Bitcoin production compared to June 2023 due to the recent halving event reducing block subsidies by 50%.
Expansion and Enhancements to Fleet
Based in Canada, Bitfarms increased its installed hashrate to 11.4 EH/s in June, with 10.4 EH/s operational. The company aims to reach 21 EH/s by the end of 2024, with the current hashrate marking a 96% year-on-year increase and a 39% month-on-month increase.
In 2024, Bitfarms focused on upgrading its mining fleet by installing 39,000 new miners and decommissioning an equal number of older, less efficient ones. These upgrades have boosted the hashrate, improved energy efficiency, and enhanced gross mining margins.
U.S. Expansion and Operational Hurdles
Bitfarms expanded its U.S. operations with a new 120 Megawatt site in Sharon, Pennsylvania, expected to support an additional 8 EH/s once fully operational. In contrast, mining operations at the Paso Pe facility in Paraguay faced challenges due to severe weather conditions in June.
Riot Platforms’ Failed Takeover Attempts
Riot Platforms tried to acquire Bitfarms, offering a $950 million buyout in June but later admitted defeat on June 24. Despite acquiring a 14.9% stake in Bitfarms, Riot’s attempts to acquire 15% or more were unsuccessful. Riot also failed to replace three members of Bitfarms’ board of directors.
In conclusion, Bitfarms has demonstrated resilience and growth in Bitcoin production and hashrate capacity despite external pressures. The company’s strategic upgrades and expansion efforts position it for success in the dynamic cryptocurrency mining industry.