Skip to main content
Skip to main content
Canadian Bitcoin mining company Bitfarms is planning to build its first data center in the United States following the purchase of a land plot in Washington State.
In a Nov. 11 announcement, Bitfarms said it aimed to establish mining operations in the U.S. capable of 620 petahashes per second using 6,200 Bitmain rigs fully powered by hydroelectric energy. The firm has already purchased a 24 megawatt hydro power farm in Washington for $26 million, but plans to expand to 99 MW by developing additional farms in the area.
Bitfarms CEO Emiliano Grodzki said the firm had chosen Washington for its “cost-effective electricity” and production rates. With the addition of the 24 MW data center, the company currently has a total mining capacity of 106 MW, but estimates the completed facilities will be able to produce 3.7 Bitcoin (BTC) daily at a cost of roughly $4,000 per BTC — at the current BTC price of $65,000, this would mean roughly $183,000 in profit daily.
Related: Bitfarms’ shares slump on Nasdaq debut amid crypto market pull-back
At a time when many are citing the potential environmental impact of crypto mining, Bitfarms claims its facilities in Canada are powered almost entirely by hydroelectric energy. Cointelegraph previously reported that Bitfarms had doubled its monthly crypto mining productivity between January and July, mining 199 BTC and 400 BTC, respectively, potentially as a result of the crackdown on miners in China.
According to the mining firm, it currently has 10 farms in operation or under development in countries including the United States, Argentina, and Canada. At the time of publication, Bitfarms claims a mining capacity of 82 MW at 1.8 exahashes per second.
Bitcoin miner Bitfarms announced it is constructing two new mining farms in the city of Sherbrooke, Québec, to be completed in phases during the first two quarters of 2022 and house a total of 78 megawatts (MW) of power capacity. The company expects to accommodate 21,000 bitcoin miners that together may generate over 2 exahashes per second (EH/s).
“Committed to increasing our capacity and hashrate in a cost-effective manner, we have been working closely with the City of Sherbrooke to expedite our expansion,” said Emiliano Grodzki, CEO of Bitfarms, per the announcement. “Both farms will benefit from our existing cost-effective contracts that supply green hydro power at an average cost of just $0.04 per kilowatt hour.”
The Toronto-based miner currently has five fully operational farms and two under construction. With this new project, Bitfarms is now working to deploy four bitcoin mining farms over the coming years.
“Similar to all our other Québec farms, they will be passively cooled by the Canadian climate, reducing total energy consumption and operating costs,” Grodzki added.
Bitfarms has become a global bitcoin miner and is seeking to supercharge its operations. The company expects to achieve 3 EH/s of hashrate capacity by the end of the first quarter of 2022 and 8 EH/s by the end of that year.
In early October, the miner signed engineering, procurement, and construction contracts in Argentina to build a new mining farm there, expected to accommodate 55,000 new mining rigs and add up to 210 MW of power capacity by 2022.
On-chain metrics and company production reports show that Bitcoin and Ethereum miners are holding off from selling their mining rewards. The value of crypto held by miners has reached new all-time highs.
Crypto miners appear to be adopting a “HODL” strategy.
Recently released production reports from North American mining companies show a significant increase in the amount of Bitcoin being held by miners. Mining firms Riot Blockchain, Marathon Digital, Bitfarms, Hut8, Argo Blockchain, and HIVE have collectively stockpiled more than 20,000 Bitcoin, valued at over $1.1 billion.
On Ethereum, on-chain data also shows an uptick in the amount of ETH being held. According to the behavior analytics platform Santiment, miner balances stand at 532,750 ETH, the highest levels since 2016. The value of the stockpiled ETH has blown past all-time highs and is quickly approaching $2 billion as the second-largest cryptocurrency edges higher.
#Ethereum is up to $3,480, the coin’s highest price in 16 days. Notably, miner balances have continued to skyrocket. 532.75k $ETH is the largest balance held by miners since July 13, 2016. The value of these coins is $1.85B, easily an #AllTimeHigh. https://t.co/zf2g4ypqiJ pic.twitter.com/atPnYLhAgc
— Santiment (@santimentfeed) October 5, 2021
Instead of selling their mining rewards to cover operating costs and fund expansion plans, mining firms are instead choosing to raise capital in other ways to avoid parting with their crypto. For example, Toronto-based Hut8 recently filed to raise $150 million through a public offering, betting that the appreciation of the company’s crypto assets would make up for the short-term price dip from diluting its shares.
Other companies have started using their mining rewards as collateral to take out loans. Argo Blockchain recently finalized a deal with Galaxy Digital Holdings for a $25 million loan using Bitcoin as collateral.
The past several months have been a unique opportunity for North American miners to expand. Following crackdowns on crypto mining in China, the Bitcoin hash rate plummeted, causing the mining difficulty to drop by 28%. As such, companies that continued mining throughout the summer were able to mine record amounts of Bitcoin and Ethereum.
The unwillingness of miners to part with their crypto assets shows widespread bullish sentiment in the industry. Mining companies seem to have decided that the long-term upside potential of holding on to their Bitcoin and Ethereum is too great to pass up.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies.
Publicly-listed Bitcoin mining firm BIT Mining is one of many operations moving overseas due to the ban imposed by the Chinese government. Another Chinese province pulls the plug on Bitcoin…
El Salvador’s Bitcoin mining efforts are heating up, as the Central American nation has successfully mined Bitcoin using the geothermal energy of a volcano. El Salvador Mines Clean Bitcoin Using…
Argo Blockchain’s IPO could raise over $145 million. Argo Blockchain Goes Live on Nasdaq Argo Blockchain has launched an Initial Public Offering, the firm announced today. New RNS: Argo is…
In stock or cryptocurrency trading, you may have heard of the term “inverse head and shoulders.” Also known as the “head and shoulders bottom” formation, the inverse head and shoulders chart pattern can…
The bitcoin miner announced that it signed contracts and started constructing a 210 megawatt farm in Argentina.
Bitcoin mining company Bitfarms announced that it had signed engineering, procurement, and construction (EPC) contracts and begun the construction of a new farm in Argentina. As previously reported in April, the new mining farm is expected to add up to 210 megawatts (MW) of power capacity by 2022.
“Our new high-production facility in Argentina, which is expected to accommodate over 55,000 miners upon completion, will greatly expand our capacity and global footprint,” said Emiliano Grodzki, CEO of Bitfarms. “The Argentina facility is planned to produce Bitcoin using power at the attractive rate of just US 2.2 cents per kilowatt hour, substantially reducing our already low cost of mining Bitcoin.”
The Argentinian company providing Bitfarms with EPC services, Proyectos y Obras Americanas S.A. (PROA), has specialized in utility-grade electrical infrastructure and civil construction for nearly 60 years. The bitcoin miner has also engaged with Dreicon S.A. as an independent engineering firm that will oversee construction, quality control, and project milestones.
In June, Bitfarms announced that it would begin trading on the Nasdaq towards the end of that month under the ticker “BITF.” The miner joined Foundry USA Pool earlier this year, boosting its operating hash rate by 15%.
The bitcoin miner shared its production updates in August, including energy usage and a strategic HODL mentality. Bitfarms mined 391 new BTC during July, their most significant production rate in the year back then and approximately 96% more than its mining production in January.
Shares of publicly-traded bitcoin mining companies continue to outperform, with many of them up big this week.
The below is from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
Shares of publicly-traded bitcoin mining companies continue to outperform, with shares of Riot Blockchain (RIOT), Hut 8 Mining Corp (HUT), Marathon Digital Holdings Inc (MARA) and Bitfarms Ltd (BITF) up big during Thursday’s trading session.
It was announced this week that trillion-dollar asset manager Fidelity had purchased a 7.4% stake in Marathon Digital on July 22 to add to four of its index funds. The news of Fidelity’s acquisition came following Marathon’s announced intention of purchasing 30,000 Antminer S19J Pros for $120.7 million.
Overall, bitcoin miner valuations continue to skyrocket, and have actually outperformed the price of bitcoin in a substantial way since the May 2021 market liquidation event.
Since the start of 2020 in particular, miner stocks have outperformed by a wide margin.
While it is important to note that investing in mining stocks (obviously) does not offer the same freedom and flexibility that comes with acquiring and holding bitcoin the bearer asset, it is notable that miners seem to function as high beta bitcoin during an upcycle.
Another increasingly bullish trend that has been developing over the past couple months has been the steady increase in bitcoin held in miners’ wallets. Due to the steep decrease in miner difficulty following the mass miner exodus out of China, profit margins have increased significantly for the remaining operations able to stay plugged in.
Bitcoin in miner wallets has increased by 6,2018 since June 9.
Bitcoin mining company Bitfarms has shared bitcoin production updates, including energy usage and the company’s strategic HODL mentality.
Bitcoin miner Bitfarms has announced updates on its mining operations, including production and energy mix usage, as well as the company’s HODL strategy for bitcoin. The company has mined around 13 BTC per day with 99% clean energy.
Bitfarms mined 391 new bitcoin during July 2021, the company’s most significant production rate in the year and approximately 96% more than its mining production in January 2021. The miner estimates it is mining between 12.5 and 13.5 BTC per day.
In the first seven months of 2021, the company has mined an aggregated total of 1,748 bitcoin. Bitfarms also shared that it has deposited 1,678 BTC into custody through August 1, 2021, a figure that represents around 96% of the firm’s bitcoin production during this year. Based on the monthly closing price of July, the company has put $69.8 million in bitcoin on its balance sheet.
The recent Bitcoin crackdowns in China have helped Bitfarms increase its daily mining production, as well as its overall market share. This increase, the firm said, will also allow it to accumulate more bitcoin and HODL it on its balance sheet since the firm’s average cost per BTC mined has been reduced.
“We are proud to have added 96% of our 2021 year-to-date Bitcoin mined to our long-term inventory program,” said Emiliano Grodzki, Bitfarms founder and CEO, in the announcement. “As we work to execute on our growth targets, we anticipate adding more Bitcoins to our balance sheet at a faster rate than we have in the first half of 2021.”
Additionally, Bitfarms outlined and updated its expansion plans, saying that the lower capital requirements due to the Chinese crackdown on bitcoin mining have enabled the company to negotiate substantial discounts on its existing hardware purchase agreements. According to the announcement, the bitcoin miner expects 55,300 rigs to be delivered throughout 2021 and 2022 to empower its plans to increase its hash rate. Bitfarms aims to reach 8,000 petahashes per second (PH/s), or eight exahashes (EH/s) computing power capacity by the end of 2022.
Bitfarms is a publicly-listed bitcoin miner with 69 megawatts (MW) of 99% clean hydro-power in its facilities, housing 1,420 PH/s of hash rate capacity. In April, the miner joined Foundry USA Pool, in part to seek to expand its operations. In June, the company began trading on the Nasdaq exchange – its second one after listing on the TSX Venture Exchange.
Bitfarms has revealed in its production update released on July 14, 2021, that the recent bitcoin (BTC) mining difficulty reduction, coupled with the exodus of bitcoin miners from China, has had a positive effect on its production. Bitfarms claims to have mined 158 BTC as of July 12 and it projects to mine over 400 BTC by the end of July.
The ongoing clampdown of bitcoin (BTC) miners by the Chinese government has turned out to be a huge blessing for Bitfarms, as it now controls a massive 1.5 percent of the entire Bitcoin hashrate from its greater than 99 percent green hydroelectricity powered bitcoin mining infrastructure.
As stated in its production update release, the publicly-listed company reached significant milestones in the first six months of2021, with China’s fresh war against bitcoin miners enabling it to boost its infrastructure and market share.
With its more than 99 percent clean hydro electricity-powered facility, Bitfarms says it successfully mined 1,357 BTC from January to June 2021, making it the top miner among publicly-listed bitcoin mining businesses in North America.
As reported by BTCManager earlier in June 2021, Bitfarms added roughly 1,114 BTC from the beginning of the year to its corporate treasury, and that number has risen to 1,445 BTC as of July 12, representing more than 95 percent of its entire BTC mined this year.
Notably, the firm claims it mined a total of 265 BTC in the month of June, its largest production rate in 2021. However, July also started on an excellent note, with a record 158 BTC already mined as of July 12th and the firm says it projects to mine over 400 BTC this month based on current conditions.
Commenting on the firm’s latest achievement, Emiliano Grodzki, Founder and CEO of Bitfarms said:
“For the past 18 months, Bitfarms has been one of the largest publicly traded producers of bitcoin and one of the few companies mining bitcoin with 99 percent green hydroelectricity. With the recent ban on bitcoin mining in China, Bitfarms has nearly doubled its market share and is currently producing approximately 13 BTC daily.”
Despite the fact that China’s harsh stance on bitcoin mining operations within its shores may have rendered some miners jobless, experts say the move is a positive one for the industry as market participants will now focus on green energy sources, invariably shutting up critics who have often condemned bitcoin’s carbon footprint.
Now, Bitfarms has stated categorically that it remains dedicated to mining bitcoin with only clean energy and will continue to boost its mining capacity to enable it to take full advantage of the “significantly-improved economic opportunity.”