Bitfarms Purchases Additional Miners to Reach 21 EH/s in 2024
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Insights
The acquisition of a substantial number of Bitmain miners by Bitfarms Ltd. represents a strategic investment in the expansion of their Bitcoin mining capabilities. This move is particularly significant given the context of rising Bitcoin prices, which can correlate with increased profitability for mining operations. The purchase of 28,000 Bitmain T21 miners, along with additional T21 and S21 miners, at a cost delineated in terms of dollars per terahash ($/TH), underscores a calculated approach to enhance the company's operational efficiency and output.
From a market perspective, Bitfarms' investment is a bullish signal, potentially indicating the company's expectation of a sustained increase in the value of Bitcoin. This expansion can be seen as a lever to scale hashrate and improve energy efficiency, which are critical metrics in the mining industry. The ability to operate one of the newest fleets in the sector may provide Bitfarms with a competitive advantage, as newer equipment tends to be more energy-efficient and has a higher hashrate, translating to lower operating costs and higher output.
For stakeholders, the short-term implications involve capital outlay and potential risks associated with the volatility of cryptocurrency markets. However, the long-term perspective could be favorable if Bitcoin's price trajectory remains upward, as the expanded mining capacity could lead to increased revenue and profitability.
Examining the financial implications of Bitfarms' recent purchases, the capital investment is substantial and indicative of aggressive growth strategy. The company's decision to liquidate older miners to offset the cost of new equipment suggests a focus on capital efficiency and a proactive approach to asset management. The cost efficiency of $14/TH and $17.50/TH for the respective miners is a critical figure, as it reflects the investment needed to produce each unit of Bitcoin mining power.
Investors should consider the impact of these acquisitions on the company's balance sheet, including the potential for increased depreciation expenses and the need for financing. It is also important to assess the timing of the delivery and deployment of the new miners, as delays could affect the expected increase in hashrate and the anticipated improvements in operating metrics.
The mention of a 'designated news release' is a regulatory aspect that ties the announcement to the company's prospectus, ensuring transparency and compliance with securities regulations. This could provide reassurance to investors about the company's adherence to disclosure standards.
The cryptocurrency market is known for its volatility and rapid changes in technology. Bitfarms' investment in the latest Bitmain miners is a testament to the importance of staying ahead in the technology curve in this sector. The T21 and S21 models are among the latest offerings from Bitmain, which is a leading manufacturer of cryptocurrency mining equipment. The T21 and S21's specifications, particularly in terms of energy efficiency and hashrate, are crucial for maintaining profitability amidst fluctuating Bitcoin prices and increasing difficulty levels in mining.
The strategic timing of securing hardware prior to anticipated price increases reflects a keen understanding of the supply chain dynamics within the cryptocurrency mining industry. It is also indicative of Bitfarms' intent to capitalize on the current market conditions and prepare for a potential bull market. The ability to reach a hashrate of 21 EH/s (exahashes per second) without redeploying older miners is an ambitious target that would significantly enhance Bitfarms' position in the global mining landscape.
For the broader industry, this move could signal an upward trend in mining hardware investments and a race to acquire the most efficient miners, potentially affecting the availability and pricing of mining equipment for other players in the market.
- Fully exercises 28,000 Bitmain T21 miner purchase option –
- Purchases additional 19,280 Bitmain T21 miners –
- Purchases 3,888 Bitmain S21 miners –
- Purchases 740 Bitmain S21 Hydro miners –
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 8, 2024, to its short form base shelf prospectus dated November 10, 2023.
TORONTO, Ontario and BROSSARD, Quebec, March 11, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ/TSX: BITF), a global vertically integrated Bitcoin mining company, exercised its previously announced purchase option for 28,000 Bitmain T21 miners and also purchased an additional 19,280 Bitmain T21 miners for US
“With Bitcoin achieving new all-time high prices and having already confirmed the tremendous performance from our T21 miners currently running, Bitfarms acted quickly to secure additional T21 and S21 miners before anticipated hardware price increases. These miners are scheduled to be delivered in 2024, we believe they are sufficient to reach 21 EH/s in 2024 without a redeployment of our older miners, which we intend to liquidate to help offset the cost of new miners,” said Geoff Morphy, President and CEO of Bitfarms.
“These orders solidify our expansion plan for 2024 and provide the pathway to operating one of the newest and potentially most powerful mining fleets in the industry leading into what looks to be a promising bull market. Securing these miners now is a key part of our strategy to drive rapid and meaningful improvements across our three key operating metrics of hashrate, energy efficiency and operating costs per terahash with a plan to capture greater upside from rising Bitcoin prices with rapidly expanding mining margins,” Morphy concludes.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.
Bitfarms currently has 11 operating Bitcoin mining facilities and two under development situated in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.
To learn more about Bitfarms’ events, developments, and online communities:
www.bitfarms.com
https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/
Glossary of Terms
- BTC BTC/day = Bitcoin or Bitcoin per day
- EH or EH/s = Exahash or exahash per second
- MW or MWh = Megawatts or megawatt hour
- w/TH = Watts/Terahash efficiency (includes cost of powering supplementary equipment
Cautionary Statement
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding the potential performance of new equipment purchases, projected growth, target hashrate, the benefits of upgrading and deployment of miners, the potential for improved financial performance and other statements regarding future growth, plans and objectives of the Company are forward-looking information. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on assumptions and estimates of management of the Company at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: the construction and operation of the Company’s facilities may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company’s electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company’s profitability; the ability to complete current and future financings, including the Company’s ability to utilize the Company’s at-the-market equity offering program (the “ATM Program”) and the prices at which the Company may sell Common Shares in the ATM Program;any regulations or laws that will prevent Bitfarms from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.SEDAR.com (which are also available on the website of the U.S. Securities and Exchange Commission at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by the Company. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law
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Investor Relations contacts:
Tracy Krumme (Bitfarms)
+1 786-671-5638
tkrumme@bitfarms.com
David Barnard (LHA)
+1 415-433-3777
Investors@bitfarms.com
Media contacts:
Actual Agency
Khushboo Chaudhary
+1 646-373-9946
mediarelations@bitfarms.com
Québec Media: Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca
FAQ
How many Bitmain T21 miners did Bitfarms purchase?
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