Bitfarms (BITF) Reports Significant Hashrate Increase and Operational Expansion

Bitfarms (BITF) Reports Significant Hashrate Increase and Operational Expansion

Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading global Bitcoin (BTC) mining company, has announced its production and operational update for May 2024. The firm reported substantial progress in various areas, including securing additional hydropower in Paraguay, increasing its installed hashrate, and enhancing energy efficiency.

Production and Expansion Highlights

In May 2024, Bitfarms earned 156 BTC, a significant decrease from the 269 BTC mined in April. This reduction is attributed to the halving event in April, which decreased block rewards, and operational curtailments in Argentina due to extreme cold weather.

The company also reported a notable increase in its installed hashrate, reaching 9.5 EH/s, with 7.5 EH/s currently operational. This marks an improvement of 31% year-over-year (Y/Y) and 13% month-over-month (M/M) in energy efficiency, now at 27 w/TH.

Securing Additional Hydropower in Paraguay

Bitfarms has doubled its capacity at the Yguazu site in Paraguay by securing an additional 100 MW through an amendment to its existing Power Purchase Agreement (PPA) with the state-owned utility, ANDE. This expansion, scheduled for deployment in 2025, will provide sustainable hydropower at a low cost of approximately 3.9 cents per kWh and is not subject to annual inflationary adjustments.

Damian Polla, General Manager of LATAM, commented, “This addition allows us to take further advantage of the cost efficiencies and rapid construction timelines we have in Paraguay. Importantly, these megawatts were secured directly through ANDE with no direct acquisition costs.”

Fleet Upgrade

Bitfarms continues to advance its fleet upgrade rapidly. As of May 2024, the company has received 25,600 miners and installed 23,600 miners, with the remaining 16,200 miners en route. These miners are expected to increase the hashing power to 12 EH/s by June.

Ben Gagnon, Chief Mining Officer, stated, “Our fleet upgrade is progressing at a rapid pace. In May, we completed two farm upgrades and filled three of five buildings in Paso Pe with new miners, increasing our installed hashrate to 9.5 EH/s.”

Financial Update and BTC Sales

In May, Bitfarms sold 136 BTC of the 156 BTC earned, generating total proceeds of $8.9 million. The company’s BTC treasury increased to 850 BTC, valued at approximately $57.2 million based on a BTC price of $67,300 at the end of May.

Additionally, Bitfarms received $17 million of the $24 million VAT refund from Quebec, with the remaining $6 million expected in the coming weeks. This refund reduces Canadian power costs by 15% and provides substantial funds to support ongoing growth.

Operational Challenges

Operations in Argentina were temporarily curtailed for eight days in May due to a spike in natural gas demand caused by unusually cold temperatures. Mining operations at the Rio Cuarto site resumed on May 31. Despite these challenges, Bitfarms remains on track to achieve its target of 21 EH/s and 21 w/TH by the end of 2024.

For more details on Bitfarms’ production and operations update, visit the official source on GlobeNewswire.

Image source: Shutterstock

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