Bitfarms, a Toronto-based Bitcoin mining company, recently announced that its operational hash rate had reached 11.1 EH/s by the end of July. This marked a significant 109% year-over-year increase and a 7% rise month-over-month. The company’s average operational hash rate for the month was 10.3 EH/s, representing a 36% increase from June. Despite facing a 1% decline in Bitcoin per EH/s due to a surge in network difficulty, Bitfarms was able to offset this challenge by deploying Bitmain T21 miners. This deployment ultimately helped the company generate 253 BTC in July, which was a substantial 34% increase from the previous month. However, it was also 33% lower than the previous year’s figures.
In terms of financials, Bitfarms reported that they sold 142 BTC for $8.6 million in July. The remaining 111 BTC bolstered the company’s treasury holdings to 1,016 BTC, which is currently valued at around $67.2 million. On an average daily basis, Bitfarms earned about 8.2 BTC, translating to approximately $542,000 based on the BTC price of $66,100 at the end of the month. Despite the challenges faced with the decline in Bitcoin per EH/s, the company’s financial performance appeared to be strong.
One of the key developments for Bitfarms is the ongoing expansion of its Baie-Comeau facility in Québec, which is set to reach 22 MW by September 1st. Additionally, progress is being made at both the Paso Pe and Yguazu sites in Paraguay, with all five warehouses and eight hydro containers at Paso Pe fully energized and actively hashing. CEO Ben Gagnon expressed confidence in Bitfarms’ operational expertise and efficiency, highlighting a 62% increase in Bitcoin mined per month since the halving event in April. Gagnon emphasized the company’s market share growth and its ability to drive value for shareholders.
Despite the positive developments, Bitfarms faced challenges with a batch of approximately 3,000 T21 miners, collectively accounting for about 700 PH/s, not performing as expected due to overheating issues. To address this, Bitmain is replacing these malfunctioning units at their own expense, with new miners expected to arrive and be installed within three weeks. Bitfarms is actively working with Bitmain to resolve these manufacturing issues and prevent similar problems in future batches. Despite this setback, the majority of T21 miners are performing as intended, and further site optimizations and software enhancements are anticipated to improve overall performance in the upcoming months.
Bitfarms’ operational hash rate reaching 11.1 EH/s is a significant milestone for the company. Despite challenges faced along the way, the company has demonstrated resilience and a commitment to addressing issues promptly. With ongoing expansions and developments, along with a focus on improving operational efficiency, Bitfarms appears to be well-positioned to continue its growth trajectory and deliver value to its shareholders in the long run.
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