Bitfarms Boosts Bitcoin Mining, Thwarts Riot Platforms' Takeover Attempt
Summary:
Bitfarms increased its Bitcoin production by 21% in June while also fighting against a takeover attempt by Riot Platforms. It successfully mined and sold a significant number of bitcoins, adding substantial value to its treasury. Despite setbacks due to recent halving and unfavourable weather conditions, the company increased its hashrate and made strides in upgrading its mining operations. Meanwhile, Riot Platforms failed in its buyout attempts, only securing a 14.9% stake in Bitfarms.
In June, Bitfarms, the bitcoin minery, increased its Bitcoin (BTC) production by 21% on a monthly basis while simultaneously repelling an acquisition attempt by Riot Platforms, a leading rival. The firm disclosed in July 1st's statement that it mined 189 Bitcoin, from which it sold 134, earning $8.8 million. Its coffers now hold 905 Bitcoin, valued at $57 million. Nevertheless, its Bitcoin yield slumped by 51% compared to June 2023 due to the latest halving event cutting the block subsidy by 50%. The Canada-based company boosted its installed hashrate to 11.4 exahashes per second in June, with 10.4 EH/s of it being online and it plans to hit its 21 EH/s goal by the end of 2024. This 10.4 EH/s is a 96% increase year-over-year and a 39% rise month-over-month. In 2024, Bitfarms has prioritized upgrading its fleet by putting roughly 39,000 new miners into service and retiring 39,000 older, less-efficient miners, as stated by Ben Gagnon, Bitfarms' Chief Mining Officer. Bitfarms has also broadened its US operations with a 120 Megawatt site in Sharon, Pennsylvania, providing room for an additional 8 EH/s once set up. Mining activity at its Paso Pe facility in Paraguay was reduced due to “severe weather” in June. However, a 0.8% fall in network difficulty compared to May partially offset this drawback, as noted by Bitfarms. Meanwhile, Riot Platforms made an unsuccessful $950 million bid to take over Bitfarms in mid-June. Riot was able to secure a 14.9% stake in Bitfarms by or before June 24, but was blocked from acquiring a 15% or greater stake. Riot's attempt to substitute three directors on the Bitfarms board in June was also fruitless. Shortly after, Bitfarms introduced a new board member to discourage further takeover attempts by Riot.
Published At
7/2/2024 2:49:06 AM
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