Bitfarms upgrades mining fleet before Bitcoin halving

• Global Bitcoin miner Bitfarms is continuing to post strong production results as the Bitcoin halving grows near
• February 2024 production totalled 300 Bitcoins, down from 357 in January, because of grid-stabilizing curtailment programs, fewer production days and a 16.2 per cent increase in network difficulty for the month
• Bitfarms is a global Bitcoin mining company
• Bitfarms stock has gained 203.08 per cent year-over-year, and 80.73 per cent since 2019

Global Bitcoin miner Bitfarms (TSX:BITF) is continuing to post strong production results as the Bitcoin halving grows near.

Expected in April, the halving refers to a 50 per cent reduction in Bitcoin rewards for miners of the cryptocurrency who play the essential role of validating transactions on the network. The fee reduction is a built-in feature of how Bitcoin operates, occurring roughly every four years, with the goal of capping the total supply at 21 million coins in 2140. Many believe the halving’s deflationary effects have and will continue to provide Bitcoin with upward price pressure.

In February 2024, Bitfarms generated 300 Bitcoins, down from 357 in January, chalking up the decrease to participating in grid-stabilizing curtailment programs, fewer production days and a 16.2 per cent increase in network difficulty for the month.

Select February 2024 Bitfarms operating highlights

• Averaged 10.3 Bitcoins earned per day, representing approximately US$648,900 per day at the US$63,000 price on Thursday.
• Installed 12 Bitmain T21 miners in Quebec, which are performing above manufacturer specifications after two weeks of testing.
• An 80 MW main transformer is en route to the new Paso Pe farm in Paraguay.
• Signed an engineering procurement and construction contract to energize its new 100 MW hydro-powered project at Yguaz, Paraguay. “This contract is expected to contribute roughly 3 exahash/second (EH/s) at 22 w/TH efficiency, which contributes to our target hashrate of 17 EH/s in H2 of 2024, to be achieved through the miner purchases already announced,” Geoff Morphy, Bitfarms’ president and chief executive officer, said in a statement. “Combined with stated expansion, the option of miner redeployments and a few key opportunistic acquisitions, we are aiming for 21 EH/s by year-end 2024.”
• Sold the 300 Bitcoins it earned in February, generating US$15.1 million.
• Bitcoins held in treasury stood at 804 at month end, representing about US$50.7 million based on the Thursday price.
• Held 135 long-dated Bitcoin call options as of Thursday.
• The company paid off US$2 million in debt, eliminating its debt balance.

Key performance indicators

Monthly Bitcoin production figures

Looking ahead at Bitfarms

As Bitcoin’s price continues to soar, up more than 158 per cent year-over-year, Bitfarms is making moves to upgrade its fleet and enhance its flexibility to capitalize on the volatile cryptocurrency market.

Morphy commented on fleet upgrades in Quebec and Paraguay in Friday’s news release. “As a critical component to our growth, we are executing well against our transformational fleet upgrade and our target of 21 EH/s by year-end 2024,” he noted. “We expect the upcoming deliveries of more high-efficiency Bitmain T21 miners to begin operating at our Québec farms in March. Based on the installation schedule, we anticipate an immediate 8 per cent increase in hashrate to 7 EH/s and 11 per cent improvement in energy efficiency to 31 watt/terahash.”

“I personally inspected the development in Paso Pe, Paraguay, about two weeks ago. Our incredible team continues to deliver, and I am thrilled at the progress being made,” he added. “The installation of eight hydro containers and 1,920 hydro miners is well underway. Four air-cooled warehouses are nearly built and almost ready to receive the initial shipment of T21 miners. We anticipate the first miners to be energized in mid-March. Upon completion, we expect Paso Pe to contribute approximately 3.2 EH/s, with an expected efficiency of 24 w/TH, to meet our guidance of 12 EH/s by the end of Q2 2024.”

Ben Gagnon, Bitfarms’ chief mining officer, rounded off management’s commentary stating that, “in mid-February, we received 12 Bitmain T21 miners that we installed in Quebec for testing. During the initial two weeks, the miners proved highly efficient and, in fact, are outperforming the manufacturer’s specs in both normal and high-energy modes at this time. With that initial performance data, we are even more excited about deploying our strategic fleet upgrade program to achieve our hashrate goals.”

About Bitfarms

Bitfarms is a global Bitcoin mining company. It operates 11 mines and more than 67,000 mining devices across Canada, the United States, Paraguay and Argentina, with a focus on green energy and long-term power contracts.

Bitfarms stock (TSX:BITF) is up by 1.29 per cent trading at C$3.94 per share as of 11:30 am ET. The stock has gained 203.08 per cent year-over-year, and 80.73 per cent since 2019.

Join the discussion: Find out what everybody’s saying about this Bitcoin mining stock on the Bitfarms Ltd. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.