Canadian Bitcoin mining company Bitfarms is flexing its muscles, reporting a 21% increase in monthly Bitcoin production for June 2024. This comes amidst a hostile takeover bid from rival miner Riot Platforms.
Increased Hashrate and Efficiency
Bitfarms mined 189 Bitcoin in June, showcasing its expanding capabilities. While this represents a 51% decrease compared to June 2023 due to the Bitcoin halving event, it highlights significant growth considering the current market conditions.
The company credits this progress to a strategic fleet upgrade. By installing 39,000 new miners and retiring older models, Bitfarms boosted its online hashrate to a staggering 10.4 exahashes per second (EH/s). This translates to a 96% year-over-year increase and a 39% jump from May 2024.
But the benefits go beyond raw power. Chief Mining Officer Ben Gagnon emphasizes that the upgrades have “significantly improved our energy efficiency and gross mining margins.” This focus on optimization positions Bitfarms for long-term profitability in the competitive Bitcoin mining landscape.
Global Expansion and Setbacks
Bitfarms isn’t just growing vertically; it’s expanding geographically as well. The company recently acquired a 120-megawatt facility in Sharon, Pennsylvania, which will contribute an additional 8 EH/s to its hashrate upon completion. This move underscores Bitfarms’ commitment to North American operations.
However, not all ventures were smooth sailing in June. The company’s Paso Pe facility in Paraguay faced production cuts due to “severe weather.” This setback was partially mitigated by a slight decrease in network difficulty, offering a silver lining.
Also Read: Bitcoin Halving Bites! Miner Revenue Dives 47% as Production Slumps Post-Halving
Fending Off a Takeover
The most dramatic development for Bitfarms in June was undoubtedly the attempted takeover by Riot Platforms. In mid-June, Riot offered a $950 million buyout proposal, a move that Bitfarms ultimately rejected.
Riot did manage to secure a 14.9% stake in Bitfarms, but their attempts to acquire a controlling interest and replace board members were unsuccessful. Bitfarms even countered by adding a new board member to solidify its leadership.
Looking Ahead
Bitfarms emerges from June 2024 with a clear strategy for growth. By focusing on technological advancements, operational efficiency, and global expansion, the company is well-positioned to weather market fluctuations and maintain its position as a leader in Bitcoin mining. With the takeover drama seemingly behind them, Bitfarms appears poised to continue its upward trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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