Canadian company Bitfarms announced that it sold approximately 63% of the bitcoins mined in August. This decision is related to the increase in network difficulty and aims to improve treasury management.
Sale of Bitcoin in August
In August 2024, Bitfarms sold 147 bitcoins out of the 233 mined during the month, amounting to about 63% of the total volume. The sale raised approximately $8.8 million, enhancing the company's liquidity and growing treasury reserves. Despite challenging conditions, Bitfarms added 86 bitcoins to its reserves, bringing the total to 1,103 bitcoins, valued at approximately $65.1 million as of August 31, 2024.
Company Challenges in August
August was particularly challenging for the company as the overall network difficulty decreased by 1.3%, providing some relief after months of rising figures. Bitfarms' bitcoin production dropped to 233 bitcoins, down 8% from July's 253 bitcoins and nearly 40% year-over-year from August 2023's 383 bitcoins. The company actively optimized its mining operations by installing 2,744 new T21 miners from Bitmain, replacing older and less efficient units. Bitfarms' operational capacity reached 11.3 EH/s, a 102% year-on-year increase and a 2% rise compared to July.
Preparing for Future Prospects
As the Bitcoin network continues to evolve, Bitfarms aims to adapt to the new environment. The company's average operating efficiency remained at 25 watts per terahash. However, the decline in bitcoins per exahash — from 25 BTC in July to 22 BTC in August — reflects the ongoing challenge of rising network difficulties. The report also mentions a public statement from rival Riot Platforms, urging Bitfarms' shareholders to support changes to the board of directors at the upcoming October 29 meeting, citing governance issues. Riot Platforms also criticized Bitfarms' recent $175 million acquisition of Stronghold Digital Mining Inc., claiming it was engineered to benefit incumbent directors.
Bitfarms continues to adapt to changes in the Bitcoin network and actively manage its resources to maintain competitiveness in the market.
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