North American Bitcoin mining company Bitfarms Ltd. has taken a bold step with a $240 million investment into upgrading its mining capabilities.
This upgrade is strategically timed to precede the expected Bitcoin halving event, which is anticipated to occur on April 20, 2024.
Bitfarms’ Bold Leap in the Anticipation of Bitcoin Halving
Bitfarms has confirmed the acquisition of new mining equipment as part of its fleet upgrade and expansion plan. According to Geoff Morphy, President and CEO of Bitfarms, the company secured 28,000 Bitmain T21 miners in March.
Ben Gagnon, Chief Mining Officer at Bitfarms, shared insights into the immediate impact of the fleet upgrade.
“As we enter the Halving, we remain focused on our 2024 transformational fleet upgrade and expansion plan, which triples our hashrate to 21 EH/s, increases our targeted operating capacity by 83% to 440 MW, and improves our fleet efficiency by 38% to 21 w/TH. … Bitfarms is well positioned, with a strong balance sheet, to execute on our growth plans and capitalize on opportunities in the upcoming bull market and beyond,” Ben Gagnon, Bitfarm’s Chief Mining Officer, said in a statement.
Besides announcing its latest upgrade, Bitfarms also its performance increase in its March 2024 update. Despite challenges such as grid curtailment programs and the need for facility maintenance, the company achieved a 35% increase in its hashrate compared to the previous year.
During this reporting period, Bitfarms successfully mined 286 BTC.
Embracing Efficiency: The New Era for Bitcoin Miners
The broader context of Bitfarms’ upgrade comes amidst a wave of strategic moves by other major Bitcoin mining companies, such as CleanSpark. In early February 2024, CleanSpark also announced significant investments in mining infrastructure.
As Bitcoin halving will cut miner rewards in half while mining costs will increase, many believe this will significantly impact the mining industry. A January 2024 study by CoinShares reveals that miners with substantial Bitcoin holdings and better capitalization tend to fare better in bullish markets.
However, those with limited cash reserves and high operational costs per Bitcoin are more vulnerable to declines in Bitcoin’s price.
