Bitcoin miner Bitfarms has released its latest monthly production data, which highlights the effect of Bitcoin halving on the company’s revenue and raises concerns about industry consolidation.
In its monthly update, Bitfarms revealed that it acquired 156 BTC in May. This is a 42% decrease from the previous month and a 66% decrease from the previous year. Of those proceeds, 136 BTC were sold for total proceeds of $8.9 million (down from $16.1 million in April) as part of the company’s regular financial management process.
Bitfarm’s total BTC holdings in treasury increased to 850 BTC, equivalent to $57.2 million, based on the BTC price of $67,300 on May 31.
24.5 BTC/average EH/s (meaning 24.5 Bitcoins were earned for each exahash per second of computing power on average), down 45% from the previous month, the company said. Cuts the economy in half.” The average of 5.0 BTC earned each day is equivalent to approximately $340,000 per day based on the BTC price of $67,300 on May 31.
Bitcoin halvings are programmed to occur automatically approximately every four years. After the halving event, miners will receive 50% less Bitcoin as a subsidy reward for every block of transactions they mine and add to the blockchain. They continue to earn additional transaction fee rewards for each block mined.
“Our fleet upgrades are progressing at a rapid pace. To date, we have acquired 25,600 miners and installed 23,600 miners, with the remaining 16,200 miners on the move. Together, these miners provide enough hashing performance to achieve 12 EH/s in June,” said Ben Gagnon, Chief Mining Officer at Bitfarms.
Argument rejected
Last week it was announced: Bitfarms refused. The roughly $1 billion acquisition offer from Riot Platforms, another Bitcoin mining company.
According to Riot Platforms, Riot wanted to buy all of Bitfarms’ outstanding shares for $2.30 per share, a 24% premium to the one-month weighted average per share. The transaction will have a total equity value of $950 million. Riot subsequently purchased a 9.25% stake in Bitfarms, making Riot the company’s largest shareholder.
Bitwise Senior Cryptocurrency Research Analyst Juan Leon famous The combined operations of the two companies will result in “a proprietary mining capacity of 52 EH/s across 15 sites worldwide by the end of 2024.”
Bitfarms fired former CEO Geoffrey Morphy on May 13 after Morphy filed a $27 million lawsuit against the company, alleging breach of contract, wrongful termination, and aggravated and punitive damages. reported.
“The Bitfarms board is currently dealing with a poorly planned ouster of the CEO and a hostile takeover,” Leon said. “Additional bids could increase the acquisition price, benefiting shareholders.”
Shares of Bitfarms were up 4% at $2.33 per share at the time of publication, according to Yahoo Finance. The stock price has fallen 18% so far this year.
Founded in 2017, Bitfarms currently operates 12 Bitcoin mining facilities and has one under development in four countries: Argentina, Canada, Paraguay, and the United States.
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