Bitfarms Reveals a $240 Million Mining Enhancement Aimed at Tripling its Hash Rate after Halving

Bitfarms, one of the world’s largest publicly traded Bitcoin mining companies, has unveiled an ambitious $240 million plan to upgrade its mining hardware. 

This is ahead of the next Bitcoin halving event scheduled for April 2024. The strategic move aims to boost the company’s competitiveness and profitability in the face of the reduced mining rewards resulting from the halving.

Massive Hardware Procurement

At the core of Bitfarms’ upgrade strategy is procuring a staggering 88,000 new, highly efficient Bitcoin mining rigs from leading manufacturers like Bitmain. The company has secured 35,888 Bitmain Bitcoin Miner T21 units, with an option for an additional 28,000 T21 miners. 

They will also acquire 19,280 Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners. According to Jeffrey Lucas, Bitfarms’ Chief Financial Officer, this transformational fleet upgrade is a game-changer. 

It will position the company for unprecedented scale and profitability in post-halving mining. The anticipated impact of the new hardware includes tripling Bitfarms’ hash rate from 6.5 exahashes per second (EH/s) to an impressive 21 EH/s.  

It will also boost the company’s targeted operating capacity by 83% to 440 megawatts (MW). Furthermore, it’s expected to enhance the overall efficiency of Bitfarms’ mining fleet by 40%, reducing energy consumption to just 21 watts per terahash (W/TH).

Bitfarms has positioned itself financially to execute this ambitious upgrade plan successfully. As of March 31, 2024, the company held $66 million in cash reserves and a Bitcoin (BTC) treasury worth approximately $56.7 million, consisting of 806 BTC valued at $70,400 per coin. 

This combined liquidity of $123 million provides Bitfarms with a solid financial cushion to facilitate the hardware acquisitions and associated infrastructure investments.

The company’s recent operational data underscore the necessity of Bitfarms’ upgrade strategy. In March 2024, Bitfarms mined 286 BTC with a monthly operating hash rate of 6.5 EH/s. 

However, in the same month a year earlier (March 2023), the company mined 424 BTC with a lower hash rate of 4.8 EH/s. 

Despite a higher hash rate, this year-over-year decline in Bitcoin production highlights the increasing difficulty of the mining process and the importance of scaling capacity to maintain profitability.

To fund its growth initiatives, Bitfarms has been selling nearly all the Bitcoin it has mined over the past two months and reinvesting the proceeds into expanding its mining fleet.

The Bitcoin halving, scheduled to occur in 2024, will reduce the reward for mining new blocks from 6.25 BTC to 3.125 BTC. This 50% reduction in mining rewards is a recurring event designed to control Bitcoin’s supply and inflation rate. 

However, it also poses a significant challenge to miners, as their revenue potential is cut in half. Bitfarms’ $240 million mining upgrade is a strategic move to counteract the impact of the halving by substantially increasing the company’s hash rate capacity and overall operational efficiency. 

Jeffrey Lucas, Bitfarms’ CFO, expressed confidence in the company’s ability to execute the upgrade successfully. 

“The success of our upgrade program rests on our proven ability to utilize our operational expertise to achieve industry-leading performance and profitability,”

He said.

Notably, Bitfarms’ track record and operational expertise in the Bitcoin mining industry position it for success in the recent goal. As such, it can navigate the challenges posed by halving and capitalize on the opportunities presented by the ever-evolving cryptocurrency mining industry.

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