Bitfarms Increases Bitcoin Production by 21%, Fends Off Riot Takeover

In the ever-evolving world of cryptocurrency, staying ahead requires resilience and innovation. Bitfarms, a leading Bitcoin mining company, has demonstrated exactly that. Despite facing a hostile takeover attempt by Riot Platforms, Bitfarms not only fended off the challenge but also reported a significant 21% increase in Bitcoin production in June. Let’s dive into the details of this impressive feat and what it means for the future of Bitfarms.

Bitfarms’ Bitcoin Production Surge

Bitfarms has showcased remarkable growth in Bitcoin production, increasing it by 21% in June. This growth is particularly noteworthy given the challenges the company has faced, including a takeover attempt by Riot Platforms. The company mined 189 Bitcoin in June and sold 134 of these Bitcoins, generating $8.8 million in revenue. As of July 1, Bitfarms holds 905 Bitcoin in its treasury, valued at approximately $57 million.

While the company’s production has decreased by 51% compared to June 2023, this decline is primarily attributed to the most recent Bitcoin halving event, which reduced the block subsidy by 50%, thereby impacting the overall output of Bitcoin miners globally.

Key Factors Driving Bitfarms’ Success

Several strategic initiatives have contributed to Bitfarms’ impressive performance:

• Increased Hashrate: Bitfarms increased its installed hashrate to 11.4 exahashes per second (EH/s), with 10.4 EH/s already operational. This marks a staggering 96% year-on-year increase and a 39% month-on-month increase in its hashrate.
• Mining Fleet Upgrades: The company has installed approximately 39,000 new miners and decommissioned an equal number of older, less-efficient units.
• Expansion in the United States: Bitfarms has expanded its operations with a new 120 Megawatt site in Sharon, Pennsylvania, expected to support an additional 8 EH/s once fully operational.

The Takeover Attempt by Riot Platforms

In mid-June, Riot Platforms made a bold attempt to acquire Bitfarms with a $950 million buyout offer. However, the bid was met with resistance from Bitfarms’ board of directors. Riot Platforms, undeterred, managed to acquire a 14.9% stake in Bitfarms by June 24. Attempts to increase this stake to 15% or more were blocked, as were efforts to replace three members of Bitfarms’ board of directors.

Riot Platforms admitted defeat in a statement released on June 24, acknowledging that engaging with Bitfarms’ incumbent board on a potential merger was not feasible. In response to Riot’s aggressive takeover attempts, Bitfarms added a new board member, further solidifying its defense against the acquisition.

Challenges and Mitigation Strategies

Despite the progress, Bitfarms faced some operational challenges in June. Severe weather conditions in Paraguay led to a curtailment of mining activities at the Paso Pe facility. However, this setback was somewhat mitigated by a 0.8% decrease in network difficulty compared to May, allowing Bitfarms to maintain a steady level of production.

Looking Ahead

Bitfarms remains confident in reaching its ambitious target of 21 EH/s by the end of 2024. The company’s strategic upgrades, expansion plans, and strong financial performance position it well for future success.

Conclusion

Bitfarms’ ability to increase Bitcoin production by 21% amidst a takeover attempt and Bitcoin halving showcases its resilience and strategic prowess. With ongoing upgrades, expansion plans, and a clear vision for the future, Bitfarms is well-positioned to continue thriving in the competitive crypto mining landscape. This story underscores the importance of adaptability and strategic planning in navigating the volatile world of cryptocurrency.