Bitcoin Miner Bitfarms Mines 411 BTC in September 2023
Bitfarms, a Canadian Bitcoin mining firm listed on NASDAQ and TSX under the ticker BITF, reported mining 411 BTC in September 2023, a 7.3% increase from August 2023. The company sold 362 of the mined BTC, generating total proceeds of $9.5 million. The remaining BTC are held in the company’s treasury, which as of September 30, 2023, amounts to 703 BTC, valued at nearly $20 million based on a BTC price of $27,000.
The increase in BTC mining is part of Bitfarms’ broader operational expansion. The company fully energized its Argentina facility at Rio Cuarto, increasing its capacity to 51 megawatts (MW). This expansion is significant as it brings Bitfarms’ total operating capacity to 233 MW, marking a 24% increase in 2023. The company also focused on improving its energy efficiency, achieving 36 w/TH with the introduction of new 28 w/TH miners. In September, Bitfarms installed S19 Pro + miners in Argentina, which nearly doubled the number of sub-30 w/TH miners in operation.
Bitfarms’ hashrate also saw an increase of 9% in September, reaching 6.1 exahashes per second (EH/s). However, this figure is slightly below the company’s Q3 2023 target of 6.3 EH/s. The shortfall is attributed to electrical infrastructure delays at Bitfarms’ Québec facility in Baie-Comeau. Despite these challenges, the company remains optimistic about its growth prospects. Geoff Morphy, the CEO of Bitfarms, stated that the company is focusing on infrastructure and balance sheet strength to provide the financial flexibility needed for aggressive growth, particularly around the next Bitcoin halving expected in April 2024. The Bitcoin halving event, which occurs approximately every four years, will reduce the Bitcoin miner block reward from 6.25 BTC to 3.125 BTC, thereby increasing the costs of mining.
While Bitfarms posted a significant increase in mining production for September 2023, it’s worth noting that the firm’s mining pace is slightly lower compared to the same period in 2022. The amount of BTC mined in September 2023 was 14.6% lower than the BTC mined in September 2022. Year-to-date, Bitfarms has mined 3,692 BTC, whereas in 2022, the company generated 3,733 BTC over the same period.
The company also reduced its total outstanding indebtedness by $1.9 million, bringing the remaining balance to $9.9 million as of September 30, 2023. This debt reduction aligns with the company’s strategy to strengthen its balance sheet in anticipation of the next Bitcoin halving.
In the broader context, Bitcoin’s mining difficulty experienced a 2.7% month-over-month increase in September. This surge indicates that Bitcoin miners are anticipating higher BTC prices and are investing in capacity accordingly. According to some estimates, BTC mining difficulty will drop by 0.7% at its next automated readjustment, which was scheduled for October 2, 2023.
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