Bitfarms sees drop in bitcoin mining

• Bitcoin mining company Bitfarms Ltd. (TSX:BITF) provided its monthly production report and an update on its fleet upgrade and expansion
• Mining operations in March 2024 generated 286 bitcoin compared with 300 bitcoin in February, a 5 per cent drop and a 33 per cent decline from the year before
• Bitfarms sold 284 of the 286 bitcoin earned as part of its regular treasury management process for total proceeds of $19.2 million
• Shares of Bitfarms opened trading at C$3.07

Bitcoin mining company Bitfarms Ltd. (TSX:BITF) provided its monthly production report and an update on its fleet upgrade and expansion.

In a news release, the bitcoin mining company stated that mining operations in March 2024 generated 286 bitcoin compared to 300 bitcoin in February, a 5 per cent drop and a 33 per cent decline from the year before. Facility upgrades resulted in temporary lower average operating exahash per second for the team, along with a 4.8 per cent increase in network difficulty.

Bitfarms sold 284 of the 286 bitcoin earned as part of its regular treasury management process for total proceeds of $19.2 million. Bitcoin held in treasury increased to 806, representing $56.7 million based on a price of $70,400 as of March 31.

Monthly production:

The company also exercised a purchase option for 28,000 Bitmain T21 miners and purchased 19,280 Bitmain T21 miners along with 3,888 Bitmain S21 miners and 740 Bitmain S21 hydro miners.

“Having confirmed the tremendous performance of our T21 miners currently running, and with bitcoin prices reaching all-time highs, we acted quickly to secure these miners at attractive prices in advance of anticipated hardware price increases,” Bitfarms’ president and chief executive officer, Geoff Morphy, said. “Together, with our 35,888 Bitmain T21 purchases and farm expansions announced in November, these new 87,796 miners are sufficient to reach 21 EH/s by year-end, with greater operating efficiency.”

“As we enter the halving, we remain focused on our 2024 transformational fleet upgrade and expansion plan which triples our hashrate to 21 exahash per second, increases our targeted operating capacity by 83 per cent to 440 MW, and improves our fleet efficiency by 38 per cent to 21 watts/terahash efficiency,” chief mining officer Ben Gagnon added. “This marks the largest growth in the company’s history and propels us toward becoming one of the industry leaders in energy efficiency. Bitfarms is well positioned, with a strong balance sheet, to execute on our growth plans and capitalize on opportunities in the upcoming bull market and beyond.”

Halving refers to a 50 per cent reduction in rewards for miners of the cryptocurrency who play the essential role of validating transactions on the network.

Founded in 2017, Bitfarms develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centres.

The company has 11 operating bitcoin mining facilities and two under development across Canada, the United States, Paraguay and Argentina.

Shares of Bitfarms opened trading at C$3.07.

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