Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading global Bitcoin (BTC) mining company, recently announced significant progress in its May 2024 production and operational update. This press release highlights Bitfarms’ commitment to growth and efficiency in the competitive Bitcoin mining landscape.
Key Takeaways:
- Increased Hashrate: Bitfarms achieved a notable increase in installed hashrate, reaching 9.5 EH/s, representing a 31% year-over-year (YoY) improvement.
- Enhanced Efficiency: The company boasts a 13% month-over-month (MoM) improvement in energy efficiency, reaching 27 watt per terahash (w/TH).
- Sustainable Expansion: Bitfarms secured an additional 100 MW of hydropower in Paraguay, doubling capacity at its Yguazu site. This expansion leverages cost-effective, clean energy for future growth.
- Rapid Fleet Upgrade: Bitfarms is on track to achieve its 12 EH/s target by June 2024 with the ongoing deployment of its new miners.
- Financial Strength: The company maintains a healthy Bitcoin treasury (850 BTC) and recently received a substantial VAT refund from Quebec, supporting continued expansion.
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Detailed Breakdown:
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Production and Expansion Highlights:
- May 2024 saw a decrease in mined Bitcoin (156 BTC) compared to April due to the Bitcoin halving and temporary operational curtailments in Argentina.
- Despite the decrease, Bitfarms’ installed hashrate reached a new high of 9.5 EH/s, with 7.5 EH/s currently operational. This signifies the company’s growing capacity to mine Bitcoin.
- The significant improvement in energy efficiency (27 w/TH) reflects Bitfarms’ commitment to sustainable mining practices.
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Securing Additional Hydropower in Paraguay:
- Bitfarms doubled its capacity at the Yguazu site in Paraguay with an additional 100 MW secured through a Power Purchase Agreement (PPA) amendment.
- This expansion leverages Paraguay’s cost-effective and sustainable hydropower, providing a long-term advantage for Bitfarms.
- The low cost (3.9 cents per kWh) and fixed pricing structure ensure predictable operational expenses.
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Fleet Upgrade:
- Bitfarms’ rapid fleet upgrade program is well underway. By May 2024, they had received 25,600 miners and installed 23,600, with the remaining miners arriving soon.
- These new miners are expected to significantly increase hashing power to 12 EH/s by June 2024.
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Financial Update and BTC Sales:
- Bitfarms strategically sold a portion (136 BTC) of their mined Bitcoin (156 BTC) in May, generating $8.9 million.
- The company’s Bitcoin treasury remains healthy at 850 BTC (valued at approximately $57.2 million based on May’s closing price).
- Additionally, a significant VAT refund from Quebec ($17 million) reduces Canadian power costs and provides resources for further growth.
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Operational Challenges:
- Unexpected cold weather in Argentina caused a temporary eight-day curtailment of operations at the Rio Cuarto site.
- Despite this setback, Bitfarms remains on track to achieve its 2024 targets of 21 EH/s hashrate and 21 w/TH energy efficiency.
Conclusion:
Bitfarms’ May 2024 production and operational update demonstrates the company’s commitment to growth and efficiency in the Bitcoin mining industry. By expanding its hashrate, securing sustainable energy sources, and upgrading its mining fleet, Bitfarms is well-positioned to capitalize on future opportunities in the Bitcoin market.
