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Highlights
- Increased Production: Bitfarms mined 236 BTC in October, a 9% month-over-month increase but a 41% drop compared to October 2023.
- Strategic Hosting Expansion: The company signed a second hosting agreement with Stronghold Digital Mining, relocating 10,000 miners to Pennsylvania, supporting 4 EH/s of additional capacity.
- Financial and Efficiency Goals: Bitfarms reached its year-end efficiency target of 21 watts per terahash (w/TH) early but is still behind on its 12 EH/s hash rate goal.
Bitfarms Ltd. (NASDAQ/TSX:BITF), a leading Bitcoin data center operator, has released its production and operations update for October 2024. The company reported generating 236 Bitcoin (BTC), a 9% increase from September, although production was 41% lower year-over-year. Bitfarms has also expanded its hosting capacity with a new agreement to deploy additional miners in Pennsylvania, aiming to boost efficiency and operational performance.
Detailed Overview
Production and Performance Metrics
Bitfarms produced 236 BTC in October 2024, a notable increase from 217 BTC in September but still significantly lower than the 398 BTC produced in October 2023. The improvement in production was driven by a 3% increase in average operational hash rate, despite an 8% rise in Bitcoin network difficulty.
The company achieved a hash rate of 11.5 exahashes per second (EH/s) by the end of October, reflecting an 83% increase year-over-year. The average daily production stood at 7.6 BTC, translating to approximately $540,000 per day, with Bitcoin priced at $71,000 at the end of the month.
Efficiency and Capacity
Bitfarms reached its year-end efficiency goal of 21 w/TH three months early, a key milestone for the company. However, CEO Ben Gagnon acknowledged delays in achieving the mid-year target of 12 EH/s due to issues with miner warranty servicing. "Despite improvements in recent miner shipments, continued miner warranty servicing has impeded the achievement of our hash rate target," Gagnon stated, emphasizing the company’s ongoing collaboration with Bitmain to address these challenges.
Hosting Agreements with Stronghold Digital Mining
The company announced a second hosting agreement with Stronghold Digital Mining, involving the deployment of 10,000 miners at Stronghold’s Scrubgrass site in Pennsylvania. Combined with a previous agreement for another 10,000 miners, Bitfarms now supports approximately 4 EH/s of hosting capacity across two sites. These deployments are expected to be energized in phases over the coming months, enhancing Bitfarms’ operational capabilities.
Financial Update
In October, Bitfarms sold 194 of the 236 BTC mined, generating $13 million in proceeds as part of its treasury management strategy. The company added 42 BTC to its holdings, increasing its Bitcoin treasury to 1,188 BTC, valued at $84.3 million. Additionally, Bitfarms expanded its Synthetic HODL™ position, holding 802 long-dated Bitcoin call options at the end of October, up from 602 in September.
Operational Highlights
- Hash Rate: 11.5 EH/s operational as of October 31, up 83% year-over-year.
- Capacity: Operating at 310 megawatts (MW), with 256 MW powered by hydropower, demonstrating a strong commitment to sustainable energy.
- Sales and Treasury: Sold 194 BTC for $13 million, adding to a growing Bitcoin treasury of 1,188 BTC.
Bitfarms continues to navigate the evolving crypto mining landscape, investing in infrastructure and efficiency upgrades while managing market fluctuations and operational challenges.
