Bitfarms Mines 21% More Bitcoin in June, Powering Through Riot Takeover Bid

Hold onto your hats, crypto enthusiasts! The Bitcoin mining world is buzzing with activity, and Bitfarms is right in the thick of it. Despite facing a hostile takeover attempt from rival Riot Platforms, Bitfarms not only held its ground but actually boosted its Bitcoin production in June. Let’s dive into the numbers and see how this Canadian miner is powering through the pressure.

Defying the Odds: Bitfarms’ June Bitcoin Bonanza

Imagine trying to focus on your work while someone is trying to buy your company out from under you. That’s essentially what Bitfarms navigated in June. But instead of faltering, they stepped on the gas pedal when it came to mining Bitcoin. Here’s the headline figure:

• Bitfarms mined 21% more Bitcoin in June compared to the previous month.

Yes, you read that right. While dealing with boardroom drama and takeover bids, Bitfarms managed to increase its Bitcoin output. In total, they mined 189 Bitcoin in June. That’s a significant jump and a testament to their operational strength.

Image: Bitfarms mining facility (Conceptual)

Hashrate on the Rise: Powering the Bitcoin Network

Bitcoin mining is all about hashrate – the computational power used to solve complex equations and validate transactions on the blockchain. A higher hashrate means more Bitcoin mined and a more secure network. Bitfarms didn’t disappoint here either. They reported a substantial increase in their online hashrate:

• Bitfarms increased its online hashrate to 10.4 exahashes per second (EH/s) in June.
• This marks a impressive 39% month-on-month increase.
• Year-on-year, the hashrate jump is even more impressive at 96%!

This massive hashrate boost indicates Bitfarms is significantly scaling up its operations and becoming an even more powerful player in the Bitcoin mining space.

Cashing in and Holding Strong: Bitfarms’ Bitcoin Treasury

Mining Bitcoin is one thing, managing it wisely is another. Bitfarms seems to be playing it smart on both fronts. In June, they strategically sold a portion of their mined Bitcoin:

• Bitfarms sold 134 Bitcoin in June.
• These sales generated a cool $8.8 million.

However, they are also HODLing (holding on for dear life, in crypto speak) a significant amount of Bitcoin for the future. As of the end of June:

• Bitfarms holds a treasury of 905 Bitcoin.
• This Bitcoin reserve is currently valued at approximately $57 million.

This strong treasury provides Bitfarms with financial flexibility and positions them well for future growth opportunities in the volatile crypto market.

The Halving Hurdle: Year-on-Year Production Dip

While the month-on-month growth is exciting, it’s important to look at the bigger picture. Bitcoin’s protocol includes periodic “halving” events, which reduce the reward for mining new blocks by 50%. The most recent halving occurred in April 2024, impacting all miners. This is reflected in Bitfarms’ year-on-year production figures:

• Bitfarms’ Bitcoin production in June 2024 was 51% lower compared to June 2023.

This decrease is directly attributable to the halving event. Despite mining more efficiently, the reduced block subsidy naturally leads to fewer Bitcoins mined overall compared to pre-halving periods. It’s an industry-wide challenge that miners are constantly adapting to.

Fleet Upgrade: Efficiency is the Name of the Game

How did Bitfarms manage to increase production month-on-month despite the halving and takeover drama? The answer lies in strategic upgrades to their mining fleet. They’ve been busy swapping out older equipment for newer, more powerful, and energy-efficient miners:

• Bitfarms installed approximately 39,000 new miners in 2024.
• They simultaneously unplugged 39,000 older, less efficient miners.

This massive fleet overhaul is paying dividends. As Ben Gagnon, Bitfarms’ chief mining officer, explained, it has:

“[This has] significantly expanded our hashrate and improved our energy efficiency and gross mining margins across our portfolio.”

In the competitive world of Bitcoin mining, efficiency is crucial for profitability, especially after halving events. Bitfarms’ proactive fleet upgrade demonstrates a commitment to staying ahead of the curve.

Expanding Horizons: Pennsylvania Site and Paraguay Challenges

Bitfarms isn’t just upgrading; they are also expanding geographically. They are making significant strides in the United States:

• Bitfarms is developing a 120 Megawatt site in Sharon, Pennsylvania.
• This site is expected to add an additional 8 EH/s to their hashrate once fully operational.

However, operations aren’t always smooth sailing. Bitfarms also faced some weather-related challenges at their Paso Pe facility in Paraguay:

• Mining operations at Paso Pe in Paraguay were curtailed due to “severe weather” in June.

Despite this setback, the impact was partially mitigated by a slight decrease in network difficulty. The Bitcoin network difficulty adjusts automatically to maintain a consistent block generation time. A slight decrease in difficulty makes it marginally easier to mine Bitcoin.

Riot’s Takeover Attempt: A Drama in the Boardroom

Now, let’s address the elephant in the room – the attempted takeover by Riot Platforms. Riot, a major competitor, launched a bid to acquire Bitfarms, making headlines across the crypto world. Here’s a quick recap of the takeover saga:

• Riot Platforms made a $950 million buyout offer for Bitfarms in mid-June.
• Bitfarms’ board resisted the offer.
• Riot eventually admitted defeat in their takeover attempt.

Riot expressed frustration with the Bitfarms board’s unwillingness to engage, stating:

“[It’s] clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible,”

Despite failing to acquire the entire company, Riot did manage to acquire a significant stake:

• Riot acquired a 14.9% stake in Bitfarms.
• Attempts to increase their stake beyond 15% were reportedly blocked.
• Riot’s efforts to replace three Bitfarms board members also proved unsuccessful.
• Bitfarms proactively added a new board member to further strengthen their defenses against takeover attempts.

The takeover battle adds an extra layer of intrigue to Bitfarms’ recent performance. It highlights the competitive nature of the Bitcoin mining industry and the strategic importance of companies like Bitfarms.

Looking Ahead: On Track for 21 EH/s by Year-End

Despite the external pressures and internal upgrades, Bitfarms remains focused on its long-term growth targets. They reaffirmed their ambitious hashrate goal:

• Bitfarms is still “on track” to reach its 21 EH/s hashrate target by the end of 2024.

Achieving this target would solidify Bitfarms’ position as a leading Bitcoin mining company. Their June performance, amidst challenging circumstances, suggests they are well-equipped to navigate the ever-evolving crypto landscape.

Conclusion: Resilience and Growth in the Bitcoin Mine

Bitfarms’ June 2024 production report paints a picture of resilience and strategic growth. They not only weathered a hostile takeover attempt but also managed to increase their Bitcoin production and hashrate. The company’s focus on fleet upgrades, strategic expansion, and efficient operations is clearly paying off. While the halving event presents an ongoing challenge, Bitfarms appears well-positioned to continue its growth trajectory and contribute significantly to the Bitcoin network. Keep an eye on this miner – they are proving to be a force to be reckoned with in the Bitcoin world.