Tag: Bitfarms

Bitcoin Miner Bitfarms Mines 411 BTC in September 2023

by Blockchain News

Bitfarms, a Canadian Bitcoin mining firm listed on NASDAQ and TSX under the ticker BITF, reported mining 411 BTC in September 2023, a 7.3% increase from August 2023. The company sold 362 of the mined BTC, generating total proceeds of $9.5 million. The remaining BTC are held in the company’s treasury, which as of September 30, 2023, amounts to 703 BTC, valued at nearly $20 million based on a BTC price of $27,000.

The increase in BTC mining is part of Bitfarms’ broader operational expansion. The company fully energized its Argentina facility at Rio Cuarto, increasing its capacity to 51 megawatts (MW). This expansion is significant as it brings Bitfarms’ total operating capacity to 233 MW, marking a 24% increase in 2023. The company also focused on improving its energy efficiency, achieving 36 w/TH with the introduction of new 28 w/TH miners. In September, Bitfarms installed S19 Pro + miners in Argentina, which nearly doubled the number of sub-30 w/TH miners in operation.

Bitfarms’ hashrate also saw an increase of 9% in September, reaching 6.1 exahashes per second (EH/s). However, this figure is slightly below the company’s Q3 2023 target of 6.3 EH/s. The shortfall is attributed to electrical infrastructure delays at Bitfarms’ Québec facility in Baie-Comeau. Despite these challenges, the company remains optimistic about its growth prospects. Geoff Morphy, the CEO of Bitfarms, stated that the company is focusing on infrastructure and balance sheet strength to provide the financial flexibility needed for aggressive growth, particularly around the next Bitcoin halving expected in April 2024. The Bitcoin halving event, which occurs approximately every four years, will reduce the Bitcoin miner block reward from 6.25 BTC to 3.125 BTC, thereby increasing the costs of mining.

While Bitfarms posted a significant increase in mining production for September 2023, it’s worth noting that the firm’s mining pace is slightly lower compared to the same period in 2022. The amount of BTC mined in September 2023 was 14.6% lower than the BTC mined in September 2022. Year-to-date, Bitfarms has mined 3,692 BTC, whereas in 2022, the company generated 3,733 BTC over the same period.

The company also reduced its total outstanding indebtedness by $1.9 million, bringing the remaining balance to $9.9 million as of September 30, 2023. This debt reduction aligns with the company’s strategy to strengthen its balance sheet in anticipation of the next Bitcoin halving.

In the broader context, Bitcoin’s mining difficulty experienced a 2.7% month-over-month increase in September. This surge indicates that Bitcoin miners are anticipating higher BTC prices and are investing in capacity accordingly. According to some estimates, BTC mining difficulty will drop by 0.7% at its next automated readjustment, which was scheduled for October 2, 2023.

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Bitcoin Miner Bitfarms Mined 1,223 BTC but with $25 Million Net Loss in Q2 2023

by Blockchain News

Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a vertically integrated global bitcoin company, has released its financial results for the second quarter ended June 30, 2023.

Bitfarms successfully mined 1,223 BTC in the second quarter of 2023, bringing its total holdings to 549 BTC, an increase of 114 BTC. The corporation set a future aim of 7.0 EH/s for Q1 2024 when its hashrate as of June 30, 2023, hit 5.3 EH/s, an increase of 10% from March 31, 2023. According to reports, Q2 2023 revenue increased from the prior quarter’s $30 million to $35 million. Despite the rise in sales, the company’s net loss increased significantly from $2 million in Q1 2023 to $25 million, a huge loss. Compared to the prior quarter’s adjusted EBITDA of $7 million, the current quarter’s adjusted EBITDA was $8 million. From $12,500 in Q1 2023, the average direct cost to generate one BTC climbed to $15,700. As of June 30, 2023, Bitfarms has $549 BTC, worth an estimated $17 million, and $31 million in cash on hand. In addition, the business revealed plans to build a new 50 MW farm in Paraguay and obtained contracts for 150 MW of cheap, ecologically friendly hydropower there in July….

Bitfarms’ revenue growth reflects higher hashrate and average BTC prices, partially offset by a decrease in total BTC produced. The net loss of $25 million includes $10 million in impairment charges. The company’s gross mining profit and gross mining margin were $14 million and 42%, respectively, consistent with Q1 2023. General and administrative expenses were $9 million, up 10% from Q1 2023, and total cash costs of production per BTC were $21,800 in Q2 2023, up from $17,600 in Q1 2023.

Bitfarms continued to invest in infrastructure and fleet upgrades, increasing its hashrate by 10% during Q2 2023. The company also acquired contracts for hydropower in Paraguay, a market with low build-out costs and quick project timelines. The company’s expansion strategy includes becoming a self-importer of miners in Argentina and purchasing new high-efficiency miners for deployment in Argentina and Canada.

Bitfarms is projecting 20% sequential growth in its hashrate in Q3 2023 and expects further growth with the commissioning of the Paso Pe farm in Q1 2024. The company’s focus on sustainable, locally based energy infrastructure and ongoing investments in geographic expansion positions it for continued development across multiple jurisdictions.

Bitfarms’ Q2 2023 results reflect a strategic focus on growth and efficiency, with investments in infrastructure and expansion into new markets. While the company reported a net loss for the quarter, its revenue growth and consistent gross mining margin indicate a positive trajectory. Bitfarms demonstrates a progressive stance through its dedication to sustainable energy and the setting of assertive goals for hashrate expansion. This approach resonates with current industry movements and potential market prospects.

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Bitcoin Miner Bitfarms Mined 378 BTC and Sold 333 in July

by Blockchain News

Bitfarms Ltd., a global vertically integrated Bitcoin mining company, has released its Bitcoin (BTC) production and mining operations update for July 2023. The report, published on August 1, 2023, provides detailed insights into the company’s recent activities, performance metrics, and future plans.

Mining Performance and Expansion

In July 2023, Bitfarms mined 378 BTC, a decrease of 1.8% compared to 385 BTC in June 2023. The reduction was attributed to a 3.3% increase in network difficulty and disruptions caused by extreme weather events, including record temperatures and wildfires in Quebec. A direct lightning strike that disabled the primary electricity transformer at the Magog farm also contributed to the temporary reduction in production.

Despite these challenges, Bitfarms initiated an expansion plan to nearly double its hydropower capacity to 350 MW by acquiring 150 MW of under-utilized hydropower in Paraguay. Construction on the first 50 MW facility is planned to commence in Q3 2023.

New Developments and Operational Highlights

Production at the 11th Farm: Bitfarms started production at its 11th farm in Baie-Comeau, aiming to reach 11 MW of production in Q3 2023, with an additional 11 MW targeted for 2H 2024.

BTC Price Rise: The average BTC price rose to $30,100 in July, up 9.1% from $27,600 in June.

Treasury Increase: Of the 378 BTC mined, 333 BTC were sold, and 45 BTC were added to the treasury, reaching 594 BTC at July 31, 2023.

Paraguay Expansion: The company acquired two Power Purchase Agreements for up to 150 MW of hydropower in Paraguay, marking a significant step in its expansion strategy.

Upgrades and Installations: Various upgrades and miner installations were carried out in Quebec, Argentina, and Washington State, enhancing production efficiency.

Financial Update

Bitfarms sold 333 BTC of the 378 BTC mined in July, generating total proceeds of $9.9 million. The company also reduced its total outstanding indebtedness by $1.8 million, resulting in a remaining balance of $13.7 million at July 31, 2023. Additionally, 45 BTC were added to the treasury, increasing custody to 594 BTC, representing approximately $17.3 million based on a BTC price of $29,200 at July 31, 2023.

Future Prospects

Bitfarms’ CEO, Geoff Morphy, emphasized the company’s disciplined growth strategy, focusing on securing low-cost power and investing in highly efficient operations. The expansion in Paraguay and the initiation of new farms reflect the company’s commitment to leveraging industry knowledge and economies of scale.

The company also plans to attend various conferences and events in the coming months, including Bitfarms Analyst Day on September 14th in New York City.

Bitfarms’ July 2023 report showcases a robust strategy for growth and expansion, coupled with a commitment to sustainable energy utilization. Despite temporary setbacks due to weather and technical issues, the company’s focus on hydropower capacity, geographic diversification, and operational efficiency positions it as a significant player in the global Bitcoin mining landscape. The report also highlights Bitfarms’ financial stability and readiness to leverage future opportunities in the ever-evolving cryptocurrency market.

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Bitcoin Miner Bitfarms Starts Production in Argentina

by Blockchain News

Bitfarms Ltd, a Bitcoin mining company, headquartered in Quebec, Canada, announced on Monday that it has started mining production in its new facility based in Argentina.

The Canadian miner said its hashrate has exceeded the 4 exahash per second (EH/s) milestone as it began production at the first of its two 50-megawatt (MW) warehouses under development in Argentina. Bitfarms said the initial start-up adds 10 megawatts (MW) of power capacity to its portfolio, thus increasing total corporate capacity to 176 MW.

By deploying new facilities, the mining farm has begun the construction of its second 50 MW warehouse in Argentina, which is expected to be completed at the beginning of the second quarter of 2023.

Based on current foreign currency exchange rates and natural gas prices in Argentina, Bitfarms expects the energy cost at its newly operating 50 MW production facility in Rio Cuarto, Argentina, to be the lowest across the 10 sites in its portfolio.

Geoff Morphy, the President and COO of Bitfarms, talked about the development: “We are proud to start production ahead of plan at our first 50 MW warehouse in Rio Cuarto, marking our 10th mining facility and 4th country now in production. Executing our diversified global growth strategy to increase portfolio stability and reduce geographic and climatic risks, Argentina marks our fourth country in production.”

Currently, Bitfarms operations in Argentina hire 28 workers, which is expected to increase as production is added.

In October last year, Bitfarms signed contracts and started constructing a 210-megawatt farm in Argentina.

Why Argentina?

BTC miners consider Argentina a perfect environment for their production to thrive. Low/subsidized electricity and consumer bills to income ratio are some of the factors known to go in hand with such rapid growth.

Low energy costs mean the profit margin for miners is going to increase while electricity bills cost 3% maximum of households’ monthly income, far lower than regional neighbours. These make Argentina stand out more as an attractive target for crypto miners.

Argentina could become a crypto mining hub just like Texas. Bitcoin experts consider Texas as the world’s newest Bitcoin mining capital. The jurisdiction has been taking up China’s missed opportunity following China’s ban on crypto mining last year.

Since July last year, many Bitcoin miners found new ground in Texas and hailed that state as a new cryptocurrency hub.

To be profitable, mining cryptocurrency requires lots of cheap energy. China was once the main hub for mining because its electricity was relatively cheap. But that changed last summer when the local government imposed a shutdown on Bitcoin miners as the country heightened efforts to develop its own, better-controlled digital currency.

Since then, miners have been moving across the world, looking for places where electricity is cheap, and many have settled on Texas as their destination.

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Bitcoin Miner Bitfarms Starts Building First Warehouse in Argentina, Expected to Run in Q2 of 2023

by Blockchain News

Bitfarms Ltd, a Bitcoin mining company, headquartered in Quebec, Canada, announced on Monday that it has started mining production in its new facility based in Argentina.

The Canadian miner said its hashrate has exceeded the 4 exahash per second (EH/s) milestone as it began production at the first of its two 50-megawatt (MW) warehouses under development in Argentina. Bitfarms said the initial start-up adds 10 megawatts (MW) of power capacity to its portfolio, thus increasing total corporate capacity to 176 MW.

By deploying new facilities, the mining farm has begun the construction of its second 50 MW warehouse in Argentina, which is expected to be completed at the beginning of the second quarter of 2023.

Based on current foreign currency exchange rates and natural gas prices in Argentina, Bitfarms expects the energy cost at its newly operating 50 MW production facility in Rio Cuarto, Argentina, to be the lowest across the 10 sites in its portfolio.

Geoff Morphy, the President and COO of Bitfarms, talked about the development: “We are proud to start production ahead of plan at our first 50 MW warehouse in Rio Cuarto, marking our 10th mining facility and 4th country now in production. Executing our diversified global growth strategy to increase portfolio stability and reduce geographic and climatic risks, Argentina marks our fourth country in production.”

Currently, Bitfarms operations in Argentina hire 28 workers, which is expected to increase as production is added.

In October last year, Bitfarms signed contracts and started constructing a 210-megawatt farm in Argentina.

Why Argentina?

BTC miners consider Argentina a perfect environment for their production to thrive. Low/subsidized electricity and consumer bills to income ratio are some of the factors known to go in hand with such rapid growth.

Low energy costs mean the profit margin for miners is going to increase while electricity bills cost 3% maximum of households’ monthly income, far lower than regional neighbours. These make Argentina stand out more as an attractive target for crypto miners.

Argentina could become a crypto mining hub just like Texas. Bitcoin experts consider Texas as the world’s newest Bitcoin mining capital. The jurisdiction has been taking up China’s missed opportunity following China’s ban on crypto mining last year.

Since July last year, many Bitcoin miners found new ground in Texas and hailed that state as a new cryptocurrency hub.

To be profitable, mining cryptocurrency requires lots of cheap energy. China was once the main hub for mining because its electricity was relatively cheap. But that changed last summer when the local government imposed a shutdown on Bitcoin miners as the country heightened efforts to develop its own, better-controlled digital currency.

Since then, miners have been moving across the world, looking for places where electricity is cheap, and many have settled on Texas as their destination.

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BTC Miner Bitfarms’ Energy Capacity Touches 21% in July

by Blockchain News

Bitfarms’ energy capacity increased to 21% in July from June 30.

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The Bitcoin miner’s increase in energy capacity reached 166 megawatts following the firm’s completion of the second construction phase at a location in Canada.

According to Bitfarms’ monthly update, the total hash rate also increased by 5.6% to 3.8 exahash per second (EH/S); it plans to further increase the rate to 4 EH/s by the end of August 2022.

The company further added that it witnessed an increase in production at two other sites in Canada and Washington State.

However, Bitfarms’ Chief Mining Officer, Ben Gagnon, said, “unseasonably high temperatures in Québec and Washington state late in the month also slightly lowered miner productivity and affected our corporate hashrate.”

In July, Bitfarm mined 500 BTC and sold 1,623 BTC throughout the month. The revenue it collected was utilised to cut down a bitcoin-backed loan by $15 million, bringing the outstanding debt to $23 million.

While in June, the miner sold 3,000 BTC to pay down a portion of a $100 million loan from Galaxy Digital.

Since July 31, Bitfarms has held 2,021 BTC in custody after selling 1,623 BTC last month.

According to a report from Blockchain.News, Canada-based Bitfarms also announced in mid-June that it entered into an equipment financing deal to stabilise its financials amid the plunge in crypto prices.

The report also added that it had announced Bitfarms entered a new $37 million equipment financing deal with NYDIG at a 12% interest rate. Bitfarms collateralised the loan by the mining rigs at the company’s Leger and Bunker facilities.

In its Q1 report from March 31, 2022, Bitfarms stated that it had mined 961 Bitcoin (BTC) at an average cost of production of $8,700/BTC during Q1 2022.

The company admitted that financial results in Q1 2022 were significantly impacted by the decline in the market price of Bitcoin during the quarter compared to Q4 2021.

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BTC Miner Bitfarms’ Energy Capacity Increased to 21% in July

by Blockchain News

Bitfarms’ energy capacity increased to 21% in July from June 30.

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The Bitcoin miner’s increase in energy capacity reached 166 megawatts following the firm’s completion of the second construction phase at a location in Canada.

According to Bitfarms’ monthly update, the total hash rate also increased by 5.6% to 3.8 exahash per second (EH/S); it plans to further increase the rate to 4 EH/s by the end of August 2022.

The company further added that it witnessed an increase in production at two other sites in Canada and Washington State.

However, Bitfarms’ Chief Mining Officer, Ben Gagnon, said, “unseasonably high temperatures in Québec and Washington state late in the month also slightly lowered miner productivity and affected our corporate hashrate.”

In July, Bitfarm mined 500 BTC and sold 1,623 BTC throughout the month. The revenue it collected was utilised to cut down a bitcoin-backed loan by $15 million, bringing the outstanding debt to $23 million.

While in June, the miner sold 3,000 BTC to pay down a portion of a $100 million loan from Galaxy Digital.

Since July 31, Bitfarms has held 2,021 BTC in custody after selling 1,623 BTC last month.

According to a report from Blockchain.News, Canada-based Bitfarms also announced in mid-June that it entered into an equipment financing deal to stabilise its financials amid the plunge in crypto prices.

The report also added that it had announced Bitfarms entered a new $37 million equipment financing deal with NYDIG at a 12% interest rate. Bitfarms collateralised the loan by the mining rigs at the company’s Leger and Bunker facilities.

In its Q1 report from March 31, 2022, Bitfarms stated that it had mined 961 Bitcoin (BTC) at an average cost of production of $8,700/BTC during Q1 2022.

The company admitted that financial results in Q1 2022 were significantly impacted by the decline in the market price of Bitcoin during the quarter compared to Q4 2021.

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Bitfarms Sells 1500 BTC Goes for New Loan to Boost Liquidity

by Blockchain News

Bitfarms Ltd, a global Bitcoin self-mining company headquartered in Canada, announced on Friday that it entered into an equipment financing agreement to stabilize its financials amid the plunge in crypto prices.

Bitfarms announced plans to sell 1,500 BTC of its mined Bitcoins in order to reduce a Bitcoin-backed credit facility it put into place in December with Galaxy Digital Holdings (GLXY). The firm intends to reduce the outstanding debt related to the facility by one-third, reducing the US$100 million loan to US$66.0 million.

Since the Galaxy facility was set to expire on June 30, Bitfarms is now negotiating with Mike Novogratz’s crypto merchant bank to renew the line. The sale of 1,500 Bitcoin to raise $34 million will help Bitfarms partially pay down the loan. To raise $34 million means that the Bitcoins were sold at the recent average price of about $22,000 per coin.

Besides that, Bitfarms has entered a new $37 million equipment financing deal with NYDIG at a 12% interest rate. Bitfarms collateralized the loan by the mining rigs at the company’s Leger and Bunker facilities.

This means that the NYDIG equipment financing agreement offers non-dilutive funding to Bitfarms’ miners to support growth in Quebec. In other words, the agreement provides equipment financing at an interest rate of 12% per annum collateralized by Bitfarms at the company’s Leger and Bunker facilities, funded as the assets are installed and become operational.

Initial funding of US$37 million has been completed with Bitfarms also in talks with NYDIG for additional funding, which might come in July and October as construction continues at the miner’s Bunker facility.

Reduced Profitability

Last year, Bitcoin’s price surged as high as $68,000. The move made miners earn profits as high as 90%. As a result, many of them expanded their operations at a rapid pace and started 2022 with great fortune.  However, Bitcoin mining has recently become less profitable as the price of the crypto has dropped downwards. Cryptocurrency markets have slid, with Bitcoin’s price currently trading at $20,573 at the time of writing.

Some major mining firms such as Riot, Marathon, and Core Scientific, that prefer not to shut down their rigs, have decided to raise capital in the debt or equity markets or sell off some of their Bitcoin holdings in order to sustain their business operations.

Argo Blockchain recently announced a plan to raise debt and sell some of its Bitcoin to cover expenses. Core Scientific has already sold some of its mined Bitcoin this year and planned to continue doing so. Most of these firms have missed their bullish revenue estimates and have conservatively revised their expansion plans.

Some miners also have resorted to buying newer mining rigs to churn out more Bitcoin to make mining more profitable. A few days ago, CleanSpark ordered purchases of new Bitcoin mining rigs.

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Bitfarms Records $40m in Total Revenue and 900 BTC Mined in Q1 2022

by Blockchain News

Bitfarms Ltd, a Canadian Bitcoin mining company, announced its financial results for the first quarter ended March 31, 2022. Bitfarms said on Monday that it has mined 961 Bitcoin (BTC) at an average cost of production of $8,700/BTC during Q1 2022.

The Toronto-based Bitfarms admitted that financial results in Q1 2022 were significantly impacted by the decline in the market price of Bitcoin during the quarter as compared to Q4 2021.

The firm said it increased total revenues to $40 million in Q1 2022, up 40%, from $28 million in Q1 2021, but a decrease from $60 million in Q4 2021.

Geoff Morphy, Bitfarms’ President and chief operating officer, talked about the development and said: “We delivered another profitable quarter in Q1 2022, even with the decline in BTC price, and revenues were up 42% compared to Q1 2021. We have grown faster than the BTC network, as our hashrate at quarter-end was 2.7 Exahash per second (EH/s), up 22% from December 31, 2021. As of today, our hashrate is 3.4 EH/s, representing about 1.5% market share.”

Bitfarms mentioned that it continued its global expansion in Q1 2022, as it started mining production facilities at The Bunker and Leger in the City of Sherbrooke, Quebec, as well as in Villarrica Paraguay. The firm further disclosed that it also acquired a new Sherbrooke location, which it refers to as ‘Garlock’ that will eventually replace its de la Pointe mining facility.

With 137 megawatts (MW) of productive capacity in place and 229 MW planned to be operational this year, the company is moving forward with increases in its hashrate. Bitfarms said that it expects to exceed 4.0 EH/s by June 30.

With the dip in Bitcoin, Bitfarms seized the opportunity to transfer cash into early this year BTC. In January, Bitfarms purchased $43.2 million in Bitcoin as the cryptocurrency plunged about 12% during the first week of the year. The firm became the latest publicly-traded company to double down on the nascent crypto market despite some experts warning that the crypto volatility makes it an unreliable investment.

In January, Bitfarms bought 1,000 Bitcoins, a move that boosted its holdings to more than 4,300 coins worth about $175 million. Comparing that, Bitfarms posted about $121 million in revenue during the 12 months ending in September last year.

Bitfarms’ investment came less than a week after MicroStrategy bought almost 2,000 Bitcoins for $94 million at the beginning of December, as prices similarly struggled to recoup losses following its November all-time high of around $69,000 per coin.

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Bitfarms purchased more than $43M in Bitcoin to start the new year

by Cointelegraph

Canadian crypto mining firm Bitfarms has already bought 1,000 Bitcoin in 2022, making its total holdings of the crypto asset more than $177 million.

In a Monday announcement, Bitfarms said it purchased 1,000 Bitcoin (BTC) for $43.2 million in the first week of January, roughly the same amount the company added to its treasury in both the third and fourth quarters of 2021. According to the mining firm, it currently holds more than 4,300 BTC as of Jan. 10, roughly $177 million at a price of $41,183.

“Our guiding company strategy at Bitfarms is to accumulate the most Bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders,” said Bitfarms founder and CEO Emiliano Grodzki. “With the dip in BTC while mining hardware prices remain high, we seized the opportunity to move cash into BTC.”

In November, the mining firm announced its intention to build its first data center in the United States following the purchase of a land plot in Washington State. The company’s websites states Bitfarms has a total mining capacity of 106 MW at the time of publication producing 2.2 exahashes per second. According to Grodzki, it aims to raise this rate by more than 260% by the end of the year, to 8 EH/s.

Related: Bitfarms estimates Argentine facility will reduce BTC mining costs by 45%

While many in the media still cite the potential environmental impact of crypto mining, Bitfarms claims its facilities in Canada are powered almost entirely by hydroelectric energy. The firm currently has 10 mining farms in operation or under development in countries including the United States, Argentina and Canada.

According to data from Cointelegraph Markets Pro, the price of BTC fell under $40,000 earlier today for the first time since September before returning to more than $41,000.