Bitfarms to Invest $240M in Bitcoin Mining Equipment Upgrade for Post-2024 Halving Profitability
Summary:
Bitfarms, a leading Bitcoin mining company, plans to invest roughly $240 million to boost its Bitcoin mining infrastructure to maintain post-2024 Bitcoin halving profitability. CFO Jeffrey Lucas revealed the company's plan to buy 88,000 efficient Bitcoin miners to enhance performance. Bitfarms continues to sell most of its mined Bitcoin to fund the expansion of its mining fleet, thus improving its hash rate and operating capacity. As of March 2024, Bitfarms holds $66 million in cash and 806 BTC in its treasury, totaling $123 million in liquidity.
Bitfarms, a prominent Bitcoin (BTC) mining firm, is set to invest close to $240 million in enhancing its Bitcoin mining hardware to maintain profitability even after the 2024 Bitcoin halving event. Bitfarms' initiative regarding the halving is focused on enhancing performance and sustaining positive gains. Company CFO Jeffrey Lucas, speaking to Cointelegraph, detailed the company's ambition to secure 88,000 high-performance Bitcoin miners. In the past, Bitfarms acquired 35,888 Bitcoin Miner T21 units from Bitmain. Moreover, an additional 28,000 T21 miners will be acquired via a purchase option, with other acquisitions consisting of 19,280 Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners. In March 2024, Bitfarms mined 286 BTC, operating at a monthly hash rate of 6.5 exahashes per second (EH/s). This is an increase from March 2023 when it mined 424 BTC at 4.8 EH/s, highlighting the vital role of a higher hash rate in maintaining profitable Bitcoin mining operations. Over the past couple of months, Bitfarms has sold most of its Bitcoins, reinvesting the proceeds into fleet expansion. Lucas emphasized the impact of the fleet upgrade: "This major upgrade boosts Bitfarms' scalability and profitability in line with the Bitcoin halving. Our hash rate witnessing a threefold rise to 21 EH/s, our desired operating capacity getting a boost by 83% to 440 megawatts (MW), and fleet efficiency improvement by 40% to 21 w/TH, is a major milestone," said Lucas. As of March 31, Bitfarms' treasury holds $66 million in cash and 806 BTC, valued at $56.7 million with a Bitcoin price of $70,400, leading to a total liquidity amounting to $123 million. “Our upgrade process's successful implementation falls on our capacity to channelize our operational skills to achieve industry-leading performance and profits,” Lucas stated in his conclusion. In another industry movement, Giga Energy, a Bitcoin mining company based in Texas, expanded its operations to Argentina. The company aims to utilize the wasted energy from "natural gas flaring" in the country's oil fields. However, the firm is still waiting for all the necessary equipment to fully develop its mining operations in the region before reporting a profit.
Published At
4/3/2024 10:28:15 AM
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