Analysis of Bitfarms’ Operational Growth in Bitcoin Mining

Bitfarms, a Toronto-based Bitcoin mining company, announced a remarkable increase in its operational hash rate by the end of July. The company reported a 109% year-over-year growth, reaching 11.1 EH/s. Additionally, there was a 7% rise in the hash rate from the previous month, with an average of 10.3 EH/s for July.

Despite a slight decline in Bitcoin production per EH/s due to network difficulty, Bitfarms managed to offset this challenge through the deployment of Bitmain T21 miners. This resulted in the generation of 253 BTC in July, representing a 34% increase from the previous month. However, the figure was lower compared to the same period last year.

Bitfarms sold 142 BTC for $8.6 million in July, increasing its treasury holdings to 1,016 BTC valued at approximately $67.2 million. On average, the company earned 8.2 BTC per day, equating to around $542,000 daily based on the month-end BTC price of $66,100.

The company’s Baie-Comeau facility in Quebec is set to expand to 22 MW by September 1st. In Paraguay, the Paso Pe and Yguazu sites are progressing well, with all warehouses and hydro containers at Paso Pe fully operational. CEO Ben Gagnon emphasized the company’s market share growth and increased Bitcoin production since the halving event in April, showcasing operational expertise and efficiency improvements.

Bitfarms faced challenges with a batch of T21 miners experiencing overheating issues, affecting the hash rate. However, Bitmain is replacing these malfunctioning units at their own cost, with new miners scheduled for installation within three weeks. The company is actively working with Bitmain to address manufacturing issues and enhance performance for future batches.

Despite setbacks with the T21 miners, Bitfarms remains confident in its growth trajectory. The company aims to further accelerate its expansion and drive value for shareholders through site optimizations and software enhancements. Gagnon highlighted that the majority of T21 miners are functioning correctly, with improvements expected in the coming months.