Bitfarms Reports June 2024 Bitcoin Production and Operational Advances

Rongchai Wang Jul 01, 2024 11:29

Bitfarms earned 189 BTC in June 2024, increased hashrate to 11.4 EH/s, and expanded operations in the U.S. and Paraguay.

Bitfarms Ltd. (NASDAQ/ TSX: BITF), a global vertically integrated Bitcoin (BTC) mining company, has released its production and operations update for June 2024. The company earned 189 BTC during the month and significantly increased its installed hashrate to 11.4 EH/s, with 10.4 EH/s operational, according to Globe Newswire.

Operational Efficiency and Expansion

Bitfarms has improved its energy efficiency to 25 watts per terahash (w/TH), marking a 36% year-over-year (Y/Y) and 7.4% month-over-month (M/M) increase. The company's Chief Mining Officer, Ben Gagnon, highlighted the completion of upgrades at all Quebec facilities, which have expanded hashrate and enhanced energy efficiency and gross mining margins.

In Paraguay, Bitfarms' Paso Pe facility has energized four of its five warehouses and six of its eight hydro containers, contributing 2.5 EH/s with an additional 0.6 EH/s expected to be energized in July. However, severe weather in June caused moderate delays and temporary underperformance of miners.

Strategic U.S. Expansion

Bitfarms has entered a new agreement to develop a 120 MW site in Sharon, Pennsylvania. This site is strategically located within the Pennsylvania-New Jersey-Maryland Interconnection (PJM), the largest wholesale electricity market in the U.S. The site is expected to provide competitively priced electricity and opportunities for demand response and curtailment programs, making it suitable for high-intensity computing beyond Bitcoin mining, including high-performance computing (HPC) and artificial intelligence (AI) services.

Phillippe Fortier, SVP of Corporate Development, expressed confidence that the Sharon site will offer long-term access to low-cost U.S. energy and flexible power trading options. PJM's shift from coal-powered plants to greener energy sources also aligns with Bitfarms' commitment to environmental sustainability.

Financial and Mining Highlights

In June 2024, Bitfarms sold 134 out of the 189 BTC earned, generating $8.8 million in proceeds. The company reported total liquidity of $194 million, including $139 million in cash, and held 905 BTC in treasury, valued at $55.2 million based on a BTC price of $61,000.

June's mining operations saw an increase in corporate hashrate, resulting in the production of 189 BTC compared to 156 BTC in May. The company also faced curtailment in Argentina and downtime associated with upgrading miners in Quebec, partially offset by a 0.8% decrease in network difficulty compared to May.

Key Performance Indicators

Future Outlook

Bitfarms is on track to deliver 21 EH/s and 21 w/TH efficiency by the end of 2024 and has initiated guidance for 2025 with a target of over 35 EH/s. The company's 2025 power capacity target has more than doubled to 648 MW from the current 310 MW, reflecting a 109% growth. The Sharon site alone is expected to support 8 EH/s, alongside the recent acquisition of an additional 100 MW in Paraguay.

Jeff Lucas, Chief Financial Officer, emphasized that Bitfarms is committed to pursuing strategic ventures that deliver significant value to shareholders. The company plans to update its contracted power capacity and 2025 EH/s target as additional opportunities materialize.

Upcoming Conferences and Events

• July 9-13: Alberta Trade Mission and Stampede, Calgary, Alberta
• July 25-27: Bitcoin Conference, Nashville, TN
• September 9-11: H.C. Wainwright 26th Annual Global Investment Conference

Founded in 2017, Bitfarms currently operates 12 Bitcoin mining facilities across Canada, the United States, Paraguay, and Argentina. The company is predominantly powered by environmentally friendly hydro-electricity and long-term power contracts.

Image source: Shutterstock

• bitcoin
• bitfarms
• cryptocurrency mining
• blockchain