Bitfarms Buys 51,908 ASIC Miners to Boost Hash Rate Amid Anticipated Bitcoin Halving
Summary:
Canadian Bitcoin miner Bitfarms has purchased 51,908 ASIC miners ahead of a predicted hardware price rise. This acquisition is anticipated to increase the company's total hash rate to 21 exahash per second (EH/s). Bitfarms, like its industry peers, has faced more than a 38% drop in stock value this year, partially due to the upcoming Bitcoin halving in April, which is expected to impact miners' profits.
On March 11, Bitfarms, a Canadian Bitcoin mining company, decided to buy 28,000 Bitmain T21 ASIC miners and chose to acquire an additional 19,280 Bitmain T21 miners at $14 per terrahash (TH). On top of this, they obtained 3,888 Bitmain S21 miners and 740 Bitmain S21 hydro miners at $17.50/TH, bringing aggregate acquisitions to 51,908 ASICs. Each Bitmain T21 ASIC miner, which boasts a hash rate of 190 TH/s, carries a price tag of approximately $3,000 at retail. Geoff Morphy, Bitfarms CEO, revealed that he secured these miners before a foreseen surge in hardware pricing and expects the new devices, set to arrive this year, to boost the company's total hash rate to 21 exahash per second (EH/s), equivalent to nearly 3% of the Bitcoin network's computation capability. Bitfarms, on March 8, publicized a $375 million equity offering under the at-the-market program, with the major purpose of the proceedings devoted to capital expenditure aimed at growing existing mining operations, working capital, and other corporate needs. Bitfarms operates 11 Bitcoin mining sites and has more under development across Canada, the United States, Paraguay, and Argentina. However, Bitfarms, like its counterparts, has experienced a more than 38% fall in stock value this year, despite Bitcoin setting new record highs amidst crypto-market bullishness. This downturn is partly due to the upcoming Bitcoin halving event in April, which will cause mining block rewards to halve, affecting the miners' profitability. Bitfarms has been progressively expanding operations over the past year in anticipation of this halving.
Published At
3/11/2024 6:58:59 PM
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