Bitfarms, a Bitcoin mining company based in Toronto, recently reported a significant increase in its operational hash rate. By the end of July, the company’s hash rate had reached 11.1 EH/s, representing a 109% year-over-year increase and a 7% rise month-over-month. The average hash rate for the month was 10.3 EH/s, showing a substantial 36% increase from the previous month. Despite facing a 1% decrease in Bitcoin per EH/s due to network difficulty, Bitfarms was able to counter this challenge through the deployment of Bitmain T21 miners.
In July, Bitfarms generated 253 BTC, marking a 34% increase from the previous month. However, this figure was 33% lower than the same period last year. The company sold 142 BTC for $8.6 million, while holding onto the remaining 111 BTC, which increased its treasury holdings to 1,016 BTC, valued at around $67.2 million. On average, Bitfarms earned 8.2 BTC daily, equating to approximately $542,000 per day based on the BTC price at the end of the month.
Bitfarms is currently expanding its Baie-Comeau facility in Quebec to 22 MW, with completion expected by September 1st. Meanwhile, in Paraguay, progress is being made at both the Paso Pe and Yguazu sites. All five warehouses and eight hydro containers at Paso Pe have been fully energized and are actively hashing. CEO Ben Gagnon expressed confidence in the company’s growth trajectory, stating that since the halving event in April, Bitfarms’ Bitcoin mined per month has increased by 62%. Gagnon attributed this growth to operational expertise, improved efficiency, and a fleet upgrade program.
Despite the positive developments, Bitfarms acknowledged that its hash rate is below the 12 EH/s target due to a batch of approximately 3,000 T21 miners experiencing overheating issues. These miners, collectively contributing about 700 PH/s, are not performing as expected, even in cooler conditions. To address this issue, Bitmain is replacing the malfunctioning units at their own cost, with new miners scheduled to be installed within three weeks. Bitfarms emphasized that it is actively collaborating with Bitmain to resolve manufacturing issues and prevent similar problems in future batches, including those expected in August. While this setback exists, the majority of T21 miners are functioning correctly, and the company anticipates further performance enhancements through site optimizations and software upgrades.
Bitfarms has shown impressive growth in its operational hash rate and Bitcoin generation, despite facing challenges with a batch of miners. The company’s strategic expansion plans and focus on operational efficiency demonstrate its commitment to driving value for shareholders and remaining competitive in the Bitcoin mining industry. With ongoing efforts to address manufacturing issues and optimize mining operations, Bitfarms is poised for continued growth and success in the future.