In June 2024, Bitfarms, a leading entity in the Bitcoin mining sector, announced a noteworthy surge in its Bitcoin (BTC) production. Amidst a challenging period marked by Riot Platforms’ aggressive acquisition efforts, Bitfarms demonstrated its determination to maintain independence and pursue growth within the dynamic cryptocurrency mining landscape.
**Bitfarms Achieves 21% Boost in Bitcoin Output in June Despite Market Challenges**
In a remarkable display of resilience, Bitfarms revealed a 21% rise in Bitcoin mining output for June, totaling 189 BTC. The company liquidated 134 Bitcoins, generating approximately $8.8 million, and retained 905 BTC, estimated at $57 million in value.
This uptick in production comes despite a 51% decrease from June 2023’s figures, a downturn linked to the Bitcoin halving event in April that slashed block rewards by half. The halving, a quadrennial occurrence post 210,000 blocks, is designed to regulate Bitcoin’s supply until the capped limit of 21 million coins is reached.
Bitfarms’ operational hashrate soared to 11.4 exahashes per second (EH/s) in June, with 10.4 EH/s actively contributing. This represents a staggering 96% year-over-year growth and a 39% climb from May. Ambitiously, Bitfarms aims for a 21 EH/s hashrate by year-end, signaling a robust expansion of its mining prowess.
**Operational Hurdles and Strategic Expansion**
June’s harsh weather impeded operations at Bitfarms’ Paso Pe facility in Paraguay. Nevertheless, the firm adeptly navigated these difficulties, aided by a marginal 0.8% dip in network difficulty from May, bolstering its operational efficiency.
**Bitfarms’ Key Performance Metrics for June 2024** (Source: Bitfarms)
Ben Gagnon, the Chief Mining Officer, highlighted Bitfarms’ strategic move into the U.S. market with a new 120-megawatt site in Sharon, Pennsylvania. This addition, nestled within the vast Pennsylvania-New Jersey-Maryland Interconnection (PJM), is poised to augment Bitfarms’ mining capacity by 8 EH/s, with projections of exceeding 35 EH/s by 2025. This expansion is set to propel Bitfarms’ power capacity to 648 megawatts by 2025, marking a 170% surge from its present capabilities.
**Bitfarms’ Defensive Maneuvers Against Riot Platforms**
In a bold mid-June maneuver, Riot Platforms extended a $950 million takeover bid for Bitfarms, only to concede defeat later. By June 24, Riot had secured a 14.9% share in Bitfarms but faced restrictions on further stake increases.
Riot’s bid to overhaul Bitfarms’ board was thwarted, with the latter fortifying its defenses by appointing Fanny Philip, a seasoned blockchain and finance specialist, as an independent board member. This move strengthens Bitfarms’ governance, with four of five board members now independent, amidst the tussle with Riot Platforms.
As Bitfarms navigates the complexities of a hostile takeover bid, it remains focused on enhancing its mining operations and scaling its infrastructure. The company has sought the expertise of various financial and legal advisors to safeguard shareholder interests and explore resolutions to the standoff with Riot.
**The Broader Bitcoin Mining Industry Outlook**
The Bitcoin mining industry is witnessing a surge in interest, driven by the escalating demand for AI-powered computational resources. Notable investments, such as Coatue Management’s $150 million infusion into Hut 8, underscore the sector’s burgeoning potential.
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