Bitfarms Reports 21% Production Increase, Fends Off Riot Platforms

• Bitfarms reported a 21% increase in Bitcoin production in June despite facing a takeover attempt by Riot Platforms.

Bitfarms has reported a notable 21% increase in Bitcoin production despite a challenging market environment, while Michael Saylor of MicroStrategy continues to champion Bitcoin as a key investment, urging investors to capitalize on recent price surges. 

Meanwhile, CryptoQuant’s CEO Ki Young Ju affirms that Bitcoin remains in a bull market, presenting an opportunity for strategic accumulation. 

Bitfarms Surges in Bitcoin Production Amid Takeover Attempt by Riot Platforms

Bitfarms, a Canadian-based Bitcoin mining company, increased its Bitcoin production by 21% in June. 

Despite facing significant challenges, including a hostile takeover attempt by one of its largest competitors, Riot Platforms, Bitfarms continues to thrive and expand its operations.

Bitfarms successfully mined 189 Bitcoin in June, marking a substantial increase in production compared to previous months. 

The company 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.

However, it’s worth noting that 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.

June was a significant month for Bitfarms in terms of enhancing its mining capabilities. The company 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. Bitfarms remains confident in reaching its ambitious target of 21 EH/s by the end of 2024.

The firm has also been proactive in upgrading its mining fleet throughout 2024. 

According to Ben Gagnon, Bitfarms’ Chief Mining Officer, the company has installed approximately 39,000 new miners and decommissioned an equal number of older, less-efficient units. 

This strategic move has significantly boosted Bitfarms’ hashrate, improved energy efficiency, and enhanced gross mining margins across its portfolio.

In addition to these upgrades, Bitfarms has expanded its operations in the United States with a new 120 Megawatt site in Sharon, Pennsylvania. This facility is expected to support an additional 8 EH/s once fully operational.

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.

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.

These developments at Bitfarms demonstrate the dynamic and often volatile nature of the crypto mining industry. 

Despite the challenges posed by Bitcoin’s halving events and external takeover attempts, Bitfarms has demonstrated its ability to adapt and grow. 

The company’s strategic upgrades, expansion plans, and strong financial performance position it well for future success.