Bitcoin Miner Bitfarms Resilience Amid Takeover Attempts

Bitcoin mining company Bitfarms exhibited strength in June by raising its Bitcoin (BTC) output by 21% compared to the previous month amidst facing acquisition endeavors from Riot Platforms, a significant competitor. Concurrently, Bitfarms upped its online hashrate to 10.4 exahashes per second, marking a notable 39% surge.

Throughout June, Bitfarms successfully extracted 189 Bitcoins, with 134 being sold for $8.8 million, according to a statement released on July 1. At present, the firm holds 905 Bitcoins valued at $57 million in its possession. Nonetheless, the Bitcoin production experienced a 51% decline from June 2023 due to the block subsidy being reduced by 50% during the latest halving event.

Despite the decline in production, the Canadian-based miner ramped up its installed hashrate to 11.4 exahashes per second, with 10.4 EH/s being operational. Bitfarms remains resolute in achieving its target of 21 EH/s by the culmination of 2024. The online 10.4 EH/s signifies an impressive 96% surge year-on-year and a 39% increase month-on-month.

Bitfarms focused on modernizing its infrastructure in the year 2024 by deploying approximately 39,000 new miners and decommissioning 39,000 outdated, less-efficient units. Ben Gagnon, Bitfarms' chief mining officer, emphasized that this initiative substantially broadened the firm's hashrate, ameliorated its energy efficiency, and enhanced gross mining margins across its portfolio.

Additionally, Bitfarms extended its operations in the United States with a 120 Megawatt facility in Sharon, Pennsylvania, set to accommodate an additional 8 EH/s upon completion. On the contrary, mining activities at its Paso Pe facility in Paraguay were curtailed due to severe weather conditions in June.

Despite the challenges encountered, Bitfarms benefited from a slight 0.8% decrease in network complexity compared to May, partially offsetting the setbacks experienced during the month.

Riot Platforms, the company's competitor, made a failed attempt to procure Bitfarms with a $950 million buyout bid in mid-June. Despite acquiring a 14.9% stake in Bitfarms, Riot's efforts to surpass the 15% mark were thwarted. Furthermore, Riot's endeavor to substitute three Bitfarms board members during the month did not succeed, prompting Bitfarms to appoint a board member of its own to deter Riot's acquisition pursuit.