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Bitfarms Mined 21% More Bitcoin in June Amid Riot Takeover Attempts

ByDayne Lee

Jul 2, 2024

Bitfarms Mined 21% More Bitcoin in June Amid Riot Takeover Attempts

Bitcoin miner Bitfarms increased its month-on-month Bitcoin production by 21% in June while defending against a takeover attempt by Riot Platforms, one of its main competitors.

In June, Bitfarms mined 189 Bitcoin, selling 134 of them for $8.8 million, according to a statement released on July 1. The company now holds 905 Bitcoin, valued at $57 million, in its treasury. Despite this increase, production was down 51% compared to June 2023 due to the latest halving event, which reduced the block subsidy by 50%.

Expansion of Hashrate

The Canadian-based mining firm increased its installed hashrate to 11.4 exahashes per second (EH/s) in June, with 10.4 EH/s currently online. This marks a 96% year-on-year and 39% month-on-month increase. Bitfarms remains “on track” to reach its target of 21 EH/s by the end of 2024.

Chief Mining Officer Ben Gagnon emphasized the company’s focus on updating its mining fleet in 2024. Bitfarms has installed approximately 39,000 new miners and unplugged an equal number of older, less-efficient miners. Gagnon noted, “[This has] significantly expanded our hashrate and improved our energy efficiency and gross mining margins across our portfolio.”

Bitfarms also expanded its operations in the United States, opening a 120-megawatt site in Sharon, Pennsylvania, which will support an additional 8 EH/s once fully operational. However, mining operations at its Paso Pe facility in Paraguay were curtailed in June due to severe weather conditions. This setback was partially offset by a 0.8% decrease in network difficulty compared to May, according to Bitfarms.

Riot Platforms’ Takeover Attempts

In mid-June, Riot Platforms attempted to acquire Bitfarms with a $950 million buyout offer. However, Riot admitted defeat later in the month. Riot stated on June 24, “[It’s] clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible.”

Riot managed to buy a 14.9% stake in Bitfarms by June 24, but attempts to increase this stake to 15% or more were blocked. Riot also tried to replace three members of Bitfarms’ board of directors during the month, but these efforts were unsuccessful. In response, Bitfarms added a new board member to deter Riot’s takeover attempts.

Strategic Focus and Future Plans

Bitfarms’ strategic focus on updating its mining fleet and expanding its operations highlights its commitment to maintaining a competitive edge in the Bitcoin mining industry. The company’s efforts to improve energy efficiency and expand its hashrate are critical to its long-term success.

  • Increased Production: Bitfarms mined 189 Bitcoin in June, selling 134 for $8.8 million.
  • Hashrate Growth: Installed hashrate reached 11.4 EH/s, with a target of 21 EH/s by the end of 2024.
  • Fleet Update: Approximately 39,000 new miners installed, older miners unplugged to improve efficiency.
  • U.S. Expansion: New 120 MW site in Pennsylvania to support an additional 8 EH/s.
  • Operational Setbacks: Severe weather in Paraguay impacted production, partially offset by decreased network difficulty.
  • Riot Takeover Attempts: Riot’s $950 million buyout offer and board replacement attempts were unsuccessful.
Bitcoin Mined189 BTC21% increase month-on-month
Bitcoin Sold134 BTCGenerated $8.8 million
Bitcoin Treasury905 BTCValued at $57 million
Installed Hashrate11.4 EH/s96% YoY and 39% MoM increase
Operational Hashrate10.4 EH/sSignificant efficiency improvements
New Miners Installed39,000Upgraded fleet for better performance
U.S. Site Capacity120 MWSharon, Pennsylvania site to support 8 EH/s
Paraguay OperationsCurtailedDue to severe weather, offset by network difficulty decrease
Riot Platforms Stake14.9%Attempted but blocked further acquisition
Riot’s Buyout Offer$950 millionRejected by Bitfarms

Bitfarms has demonstrated resilience and strategic focus amid challenges, including severe weather impacts and aggressive takeover attempts by Riot Platforms. The company’s significant increase in Bitcoin production, expansion of its hashrate, and strategic fleet updates position it well for future growth. As Bitfarms continues to navigate the evolving landscape of Bitcoin mining, its efforts to enhance efficiency and expand operations are key to maintaining its competitive edge.

Featured image credit: jcomp via Freepik

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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