Bitfarms Reaches 7 EH/s with Completion of Fleet Upgrade at Garlock and Farnham Facilities
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Insights
Improvements in energy efficiency, especially in energy-intensive industries like Bitcoin mining, have significant implications for operational costs and environmental impact. The reported 51% increase in energy efficiency due to the installation of Bitmain T21 miners at Bitfarms Ltd. is a substantial leap forward. This is particularly noteworthy given the high energy consumption associated with cryptocurrency mining operations. By reducing energy consumption per terahash (w/TH), Bitfarms not only lowers its electricity bills but also enhances its competitive edge as the industry moves towards more sustainable practices.
Energy efficiency is a critical metric in the Bitcoin mining industry, directly influencing profitability. Lower energy consumption per unit of mining power means that for the same energy input, more mining work can be done, increasing potential revenue. Additionally, this efficiency gain could be strategically important ahead of the 'halving event,' where miner rewards are cut in half, effectively doubling the energy cost per Bitcoin unless efficiency improvements are made.
The announcement from Bitfarms Ltd. regarding its significant upgrade in mining hardware and the subsequent increase in energy efficiency is a strong indicator of the company's strategic positioning in the cryptocurrency market. The deployment of T21s and M53S+ hydro miners is expected to substantially increase the company's hashrate. A higher hashrate means more computing power to solve cryptographic puzzles and thus, a higher probability of earning Bitcoin rewards.
Investors often scrutinize hashrate as a measure of a mining company's potential revenue stream. With the upcoming halving event, which will reduce the Bitcoin reward per block, Bitfarms' increase in hashrate and efficiency could mitigate the impact on its profitability. It is also worth noting that the company's expansion into Paraguay with the planned delivery of additional T21s may leverage lower energy costs in that region, potentially further optimizing profit margins.
From an Environmental, Social and Governance (ESG) perspective, Bitfarms Ltd.'s focus on improving energy efficiency is a positive development. The cryptocurrency mining sector has faced criticism for its environmental footprint and any steps to reduce energy consumption are likely to be well-received by ESG-conscious investors. The upgrade to more efficient mining equipment not only aligns with broader sustainability goals but may also provide Bitfarms with a reputational boost.
Furthermore, the proactive approach to energy efficiency ahead of regulatory pressures demonstrates foresight. As governments and international bodies continue to scrutinize the environmental aspects of cryptocurrency mining, Bitfarms' investment in energy-efficient technology could place it at an advantage if regulations tighten. This could attract investors who are particularly sensitive to ESG factors, diversifying the company's investor base and potentially providing a buffer against market volatility.
Corporate energy efficiency improves
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, Québec, April 12, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ/TSX: BITF), a global vertically integrated Bitcoin mining company, today announced the completion of its first two farm upgrades with over 5,000 Bitmain T21 miners installed and operating in Québec.
“Our Bitmain miner installations kickstart our transformative fleet upgrade and have improved energy efficiency by approximately
Upgrade Highlights:
- At Garlock, the Company installed 3,168 T21s.
- At Farnham, the Company installed 1,710 T21s and 100 M53S+ hydro miners.
- In Q2 2024, more than 30,000 additional T21s are scheduled to be delivered to the Company’s existing locations including its newest development in Paso Pe, Paraguay.
Bitfarms’ Chief Mining Officer, Ben Gagnon, stated, “Leveraging our existing facilities and the strength of our operations team, Bitfarms has already energized over 5,000 T21s with installations at our third location underway. As we deploy an additional 30,000 miners this quarter, we expect to drive rapid increases in both our hashrate and energy efficiency, while executing towards our 12 EH/s and 21 EH/s targets in 2024.”
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
- EH or EH/s = Exahash or exahash per second
- 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 (including through the addition of new miners) 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/EDGAR), 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
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4e16c63a-9683-4bea-b2eb-89204a78ee2e
https://www.globenewswire.com/NewsRoom/AttachmentNg/aa09a02b-07e1-4023-957e-62d62525e8c5
FAQ
How many Bitmain T21 miners were installed by Bitfarms in Québec?
What is the percentage improvement in energy efficiency achieved by Bitfarms through the upgrades?
What are the targets set by Bitfarms for hashrate in 2024?
Where are the additional 30,000 miners scheduled to be delivered in Q2 2024?
Who is the President and CEO of Bitfarms?
Who is Bitfarms' Chief Mining Officer?
