Bitfarms, a Canadian Bitcoin mining company, has exercised an option to purchase a substantial number of Bitmain T21 and S21 ASIC miners. The purchase includes 28,000 Bitmain T21 miners, 19,280 additional Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners. The cost per terrahash (TH) for the T21 miners is $14, while the S21 miners are priced at $17.50/TH. In total, Bitfarms will acquire 51,908 ASICs.
The retail price for each Bitmain T21 ASIC miner is approximately $3,000, and they boast a hash rate of 190 TH/s. The purchase of these additional miners was made in anticipation of hardware price increases, according to Bitfarms President and CEO Geoff Morphy. The ASICs are expected to be delivered this year and will increase the company’s total hash rate to 21 exahash per second (EH/s), equivalent to around 3% of the Bitcoin network’s processing capacity.
On March 8, Bitfarms announced a $375 million equity offering program. The company plans to use the funds primarily for capital expenditures to support the growth of its existing mining operations, as well as for working capital and general corporate purposes. Currently, Bitfarms operates 11 Bitcoin mining facilities and has additional projects in Canada, the United States, Paraguay, and Argentina.
Despite the ongoing bull market in the crypto industry, Bitfarms’ stock has declined by more than 38% this year, along with other mining companies. This drop in stock value can be attributed, in part, to the upcoming Bitcoin halving in April. The halving event will reduce block rewards by half, impacting miners’ profitability. In anticipation of this event, Bitfarms has been actively expanding its operations over the past year.
In related news, Bitcoin recently surpassed $71,000 for the first time, further highlighting the potential of the cryptocurrency market.