Bitfarms Purchases Land in Yguazu, Paraguay in Support of Transformative Fleet Upgrade & 2024 Target of 21 EH/s
- Completion of land purchase for new 100 MW production facility in Yguazu, Paraguay
- Expansion of LATAM portfolio with low-cost renewable hydropower
- Strategic location near Itaipú Dam for access to abundant renewable energy resources
- Over 85% of portfolio powered by low-cost green energy
- Anticipation of achieving a corporate hashrate of 21 EH/s by year end 2024
- Focus on improvements in hashrate, energy efficiency, and cost per bitcoin
- None.
Insights
The acquisition of land by Bitfarms Ltd. for a new Bitcoin mining facility emphasizes the growing trend of integrating renewable energy sources within the cryptocurrency mining industry. The strategic location near the Itaipú Dam is significant due to the dam's massive capacity and the potential for low-cost hydropower. This aligns with the global push towards reducing the carbon footprint of Bitcoin mining operations. The move to use over 85% green energy in their operations could set a precedent in the industry, potentially influencing competitors to follow suit to maintain social license to operate amidst increasing environmental concerns.
The anticipated increase in corporate hashrate to 21 EH/s indicates a substantial scaling up of operations. This could result in increased productivity and, consequently, a more competitive position in the market. However, the long-term success of this expansion will depend on the volatility of Bitcoin prices and the overall stability of the cryptocurrency market. Investors should monitor the progress of construction and the integration of the new facility into Bitfarms' operations, as delays or cost overruns could impact expected returns.
Bitfarms' investment in a new production facility is an indicator of the company's growth strategy and commitment to optimizing operational costs. The focus on energy efficiency and cost per bitcoin aligns with the need to enhance profitability, especially in light of the upcoming Bitcoin Halving event, which will reduce the block reward for miners. Such strategic positioning is crucial as it may allow Bitfarms to maintain, if not improve, its margins despite the Halving's potential pressure on revenue.
From a financial perspective, the company's ability to execute on its miner redeployment strategy and achieve the targeted corporate hashrate is critical for investors. This increase in hashrate should ideally translate to higher output and better economies of scale. However, investors should also consider the capital expenditures associated with this expansion and the company's ability to finance the build-out without over-leveraging. The impact on the company's balance sheet and future cash flows will be an important aspect to assess in determining the financial health and investment potential of Bitfarms.
Bitfarms' expansion into Paraguay is a noteworthy development within the cryptocurrency mining sector, particularly given the current market dynamics. The reliance on renewable energy could enhance the company's appeal to environmentally conscious investors and users, potentially providing a marketing edge. Furthermore, the timing of the facility's completion in relation to the Bitcoin Halving could prove advantageous if Bitfarms is able to capitalize on increased efficiencies before the event occurs.
The mention of the Bitmain T21 miners indicates an investment in state-of-the-art mining equipment, which could lead to improved hashrate and energy efficiency. This is particularly relevant in a highly competitive industry where technological advancements are key to maintaining an edge. The success of this strategy will likely hinge on the evolving landscape of Bitcoin mining difficulty and the broader acceptance of cryptocurrencies. Stakeholders should keep an eye on regulatory developments, as changes in legislation could significantly impact the operational framework and profitability of mining activities in various jurisdictions.
TORONTO, Ontario and BROSSARD, Québec, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically integrated Bitcoin mining company, announces that it has completed the purchase of land for its new 100 MW production facility in Yguazu, Paraguay.
“This transaction, an important step in our recently announced transformative fleet upgrade, expands our LATAM portfolio with low-cost renewable hydropower,” said Geoff Morphy, President and CEO of Bitfarms. “The newly acquired land is located in the heart of Paraguay near the Itaipú Dam, the third largest hydropower dam in the world with 14 gigawatts of installed capacity. Positioned to benefit from the region's abundant renewable energy resources, this new facility should be sustainable both economically and environmentally. Once Yguazu comes online, over
“We look forward to starting construction on the Yguazu farm and anticipate completing the facility's build-out in the second half of 2024. In conjunction with our miner redeployment strategy, the Yguazu project will be designed to help provide sufficient infrastructure to achieve a corporate hashrate of 21 EH/s by year end 2024 should we exercise our recently announced miner purchase order option for additional Bitmain T21 miners.”
“Bitfarms is dedicated to managing costs and driving returns for shareholders. This upgrade should deliver meaningful improvements in hashrate, energy efficiency and cost per bitcoin, positioning us well for the Halving and to capture upside from rising Bitcoin prices and mining economics,” Geoff Morphy concluded.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly traded (NASDAQ/TSX: BITF) 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 farms in production, one in expansion, one under construction, and one in development, in four countries: Canada, the United States, Paraguay, and Argentina. Powered by predominantly environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable, locally based, and often underutilized energy infrastructure.
To learn more about Bitfarms’ events, developments, and online communities:
Website: 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
- EH or EH/s = Exahash or exahash per second
- MW or MWh = Megawatts or megawatt hour
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. None of 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 expectations for the Company’s planned new facility in Yguazu, Paraguay, including its expected construction timeline, 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 facility 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, 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 annual information form for the year-ended December 31, 2022, filed on March 21, 2023. 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. 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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Contacts:
Investor Relations
Tracy Krumme (Bitfarms)
+1 786-671-5638
tkrumme@bitfarms.com
David Barnard (LHA)
+1 415-433-3777
Investors@bitfarms.com
Actual Agency
Khushboo Chaudhary
+1 646-373-9946
mediarelations@bitfarms.com
Québec Media: Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca
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