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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