In a dynamic display of resilience, Bitfarms, a prominent Bitcoin mining entity, reported a significant 21% surge in its Bitcoin (BTC) production for the month of June. This increase comes amidst the company’s strategic maneuvers to thwart a hostile takeover bid by Riot Platforms, a formidable rival in the industry.
During June, Bitfarms successfully extracted 189 Bitcoins and liquidated 134 of them, amassing $8.8 million in proceeds, as disclosed in their July 1 announcement. The firm’s Bitcoin reserves now boast a robust portfolio of 905 Bitcoins, valued at an impressive $57 million.
Contrastingly, Bitfarms’ Bitcoin output experienced a 51% decline from the previous year’s same month. This downturn is attributed to the recent halving event, which effectively halved the block reward.
The Canada-based mining powerhouse has ramped up its operational capacity, achieving an installed hashrate of 11.4 exahashes per second in June. Of this, 10.4 EH/s is actively contributing to the network, keeping Bitfarms firmly on its trajectory to hit the ambitious target of 21 EH/s by the close of 2024. This marks a staggering 96% increase over the year and a 39% rise from the preceding month.
A comparative analysis of Bitfarms’ key performance metrics in 2024 against those from 2023. Source: Bitfarms
2024 has seen Bitfarms channel its efforts into modernizing its mining apparatus. The company’s Chief Mining Officer, Ben Gagnon, announced the integration of approximately 39,000 state-of-the-art miners, coupled with the retirement of an equal number of outdated, less efficient units.
Further expanding its geographical footprint, Bitfarms has ventured into the United States with a new 120 Megawatt facility in Sharon, Pennsylvania. This site is poised to bolster the company’s hashrate by an additional 8 EH/s upon full deployment.
However, Bitfarms’ operations at the Paso Pe site in Paraguay faced disruptions due to extreme weather conditions in June. This challenge was somewhat mitigated by a slight 0.8% reduction in the overall network difficulty from May, as noted by Bitfarms.
The narrative of the month was dominated by Riot Platforms’ aggressive acquisition efforts targeting Bitfarms. Riot’s proposition, a $950 million buyout offer, was unveiled in mid-June but ultimately fell through. Riot conceded, stating on June 24, “It’s evident that a merger with the current Bitfarms Board is unfeasible.”
In the backdrop of these developments, Riot succeeded in securing a 14.9% ownership stake in Bitfarms by June 24. However, any attempts to surpass the 15% threshold were effectively blocked. Riot’s ambition to overhaul Bitfarms’ board with three new directors also did not come to fruition. In response, Bitfarms fortified its governance by appointing a new board member, countering Riot’s takeover strategies.
In related news, the national Bitcoin ambassador of El Salvador has been actively promoting Bitcoin adoption in Argentina, a process colloquially known as ‘orange-pilling.’