Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading global Bitcoin (BTC) mining company, has announced its May 2024 production and operations update. Install hashrate and improve energy efficiency.
Production and Expansion Highlights
In May 2024, Bitfarms acquired 156 BTC, a significant decrease from the 269 BTC mined in April. This decline is due to lower block rewards due to April’s halving event and reduced operations due to extreme cold weather in Argentina.
The company also reported that the installed hash rate has increased significantly, reaching 9.5EH/s, with 7.5EH/s now operational. This represents a 31% improvement in energy efficiency year-on-year (Y/Y) and 13% month-on-month (M/M), currently at 27w/TH.
Paraguay secures additional hydropower
Bitfarms doubled the capacity of its Iguazu field in Paraguay by securing an additional 100 MW through a revision to the existing power purchase agreement (PPA) with ANDE, a state-run electric power company. The expansion, scheduled for deployment in 2025, will provide sustainable hydropower at a low cost of approximately 3.9 cents per kWh and will not be subject to annual inflation adjustments.
Damian Polla, General Manager at LATAM, said: “This addition allows us to further leverage the cost efficiencies and rapid construction schedules we have in Paraguay. “Importantly, these megawatts were secured directly through ANDE at no direct purchase cost.”
Fleet Upgrades
Bitfarms continues to rapidly upgrade its fleet. As of May 2024, the company has acquired 25,600 mining machines and installed 23,600 mining machines, with the remaining 16,200 mining machines in transit. These miners are expected to increase hashing performance to 12EH/s by June.
Ben Gagnon, Chief Mines Officer, said: “Our fleet upgrades are progressing at a rapid pace. In May, we completed two farm upgrades, filled three of our five buildings in Paso Pe with new miners, and increased our installed hashrate to 9.5 EH/s.”
Financial updates and BTC sales
In May, Bitfarms sold 136 BTC out of the 156 BTC it earned, generating a total of $8.9 million in revenue. The company’s BTC treasury has grown to 850 BTC, worth approximately $57.2 million, based on the BTC price of $67,300 at the end of May.
Bitfarms also received $17 million of the $24 million VAT refund from Quebec, with the remaining $6 million expected to be received in the coming weeks. This rebate will reduce Canadian power costs by 15% and provide significant funding to support continued growth.
Operational Challenges
In Argentina, a surge in natural gas demand due to unusually cold temperatures led to a temporary curtailment of operations for eight days in May. Mining operations at the Rio Cuarto site resumed on May 31. Despite these challenges, Bitfarms remains on track to achieve its goals of 21 EH/s and 21 w/TH by the end of 2024.
For more information on Bitfarms’ production and operational updates, please visit the official source at GlobeNewswire.
Image source: Shutterstock
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