April 19, 2024
Bitfarms Adds 51,908 ASICs in Bitcoin Bull Market
Bitcoin News

Bitfarms Adds 51,908 ASICs in Bitcoin Bull Market

The Canadian Bitcoin mining company, Bitfarms, executed a strategic move by exercising an option to acquire a substantial number of mining hardware units. The acquisition included 28,000 Bitmain T21 ASIC miners and an additional 19,280 Bitmain T21 miners, all purchased at a rate of $14 per terrahash (TH). Additionally, the acquisition comprised 3,888 Bitmain S21 miners and 740 Bitmain S21 hydro miners, each valued at $17.50/TH. This significant transaction brought Bitfarms’ total ASIC count to an impressive 51,908.

Each Bitmain T21 ASIC miner, retailing at approximately $3,000, boasts a formidable hash rate of 190 TH/s. The decision to secure these additional miners was driven by Bitfarms’ proactive approach to preclude any potential hardware price increases. The scheduled delivery of these ASICs within the current year is expected to substantially augment Bitfarms’ total hash rate to an impressive 21 exahash per second (EH/s), representing around 3% of the Bitcoin network’s processing capacity.

In parallel to this strategic hardware expansion, Bitfarms announced a significant financial move on March 8 — a $375 million at-the-market equity offering program. The intended use of the net proceeds from this initiative is primarily directed towards capital expenditures, supporting the growth and development of Bitfarms’ existing mining operations, alongside allocations for working capital and general corporate purposes.

Bitfarms currently operates 11 Bitcoin mining facilities, with expansion plans spanning across Canada, the United States, Paraguay, and Argentina. Despite the ongoing bullish trend in the cryptocurrency market, Bitfarms’ stock has experienced a decline of over 38% in the current year, mirroring the trajectory of its peers.

This trend is attributed, in part, to the impending Bitcoin halving event in April, where block rewards will be halved, impacting miners’ profitability. To mitigate the effects of this anticipated event, Bitfarms has been actively scaling its operations over the past year, strategically positioning itself for sustained growth and resilience in the evolving cryptocurrency landscape.

Image by macrovector on Freepik

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