Bitfarms Revs Up Bitcoin Production Despite Takeover Drama
Canadian Bitcoin miner Bitfarms defied a hostile takeover attempt by competitor Riot Platforms in June while simultaneously increasing its monthly Bitcoin production by 21%. This impressive feat comes amidst an ongoing industry-wide decline in Bitcoin rewards due to the halving event.
Increased Production and Strategic Investments
Bitfarms mined 189 Bitcoin in June, a significant increase from May. However, compared to June 2023, production fell by 51% due to the halving event that reduces the block reward for miners every four years.
Despite this industry-wide challenge, Bitfarms remains focused on growth. In 2024, they strategically upgraded their mining fleet by installing 39,000 new, energy-efficient miners while simultaneously retiring older models. This modernization effort significantly expanded their hashrate (computing power dedicated to mining) and improved overall profitability.
Furthermore, Bitfarms expanded its operations to the United States with a new 120-megawatt facility in Sharon, Pennsylvania. This site has the potential to contribute an additional 8 EH/s (exahashes per second) to their hashrate once fully operational.
Challenges and Resilience
While these advancements position Bitfarms for continued success, they did encounter some setbacks in June. Mining operations at their Paso Pe facility in Paraguay were temporarily curtailed due to severe weather. However, this negative impact was partially offset by a slight decrease in network difficulty compared to the previous month.
Perhaps the most dramatic event for Bitfarms in June was the attempted hostile takeover by Riot Platforms. In mid-June, Riot offered to acquire Bitfarms for $950 million. However, Bitfarms successfully defended its independence.
“It’s clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible,” Riot conceded in a statement on June 24th. While Riot managed to purchase a 14.9% stake in Bitfarms, their attempts to gain a controlling position or replace board members were unsuccessful. Bitfarms further strengthened its position by adding a new board member to its own team.
Bitfarms’ resilience and strategic investments showcase the company’s commitment to long-term growth in the Bitcoin mining industry. Despite facing production decline due to the halving event and a hostile takeover attempt, the company managed to increase production and expand its operations. As they reach their target hashrate of 21 EH/s by the end of 2024, Bitfarms is well-positioned to be a major player in the ever-evolving Bitcoin mining landscape.