The long-awaited Bitcoin halving will take place on April 20. The rewards for Bitcoin miners will then be halved. In other words: revenues for miners will drop by 50 percent. To remain profitable, miners must be optimally prepared for the halving.
This also applies to the listed Bitcoin miner Bitfarms. The company has announced that it will invest another $240 million in better mining equipment. In total this concerns 88 thousand highly efficient mining rigs.
The Bitcoin mining sector is changing
The Bitcoin mining sector is becoming increasingly competitive. The hash rate of the Bitcoin network continues to rise and only the most efficient miners will be able to stay afloat after the halving.
In March 2023, Bitfarms mined 424 BTC at 4.8 exahashes per second (EH/s). In March 2024 this was 286 BTC with 6.5 EH/s. Compared to last year, more has power is needed to mine bitcoin.
Almost all Bitcoin miners have been investing and scaling extremely hard in recent months in anticipation of the halving. Bitfarms is no exception here.
Bitfarms is making great strides
Bitfarms’ latest investment should triple the company’s hash power output after the halving. Jeffrey Lucas, the company’s CFO, says the following:
“The transformative scale will increase Bitfarm’s scale and profitability. This is a game changer that will triple our hash rate to 21 EH/s. This increases our operational capacity by 83 percent to 440 megawatts, and improves efficiency by 40 percent.”
Although the last bear market saw numerous bankruptcies in the Bitcoin mining sector, miners now seem to have things in better order. The Bitcoin boom of the past six months has provided a significant boost to the coffers. For example, Bitfarms has $66 million in cash and 806 BTC on its balance sheet. Total liquidity of $123 million.
Trade €10,000 for free and get a 10 euro bonus
Do you want to enter the crypto world and perhaps buy Bitcoin or another crypto? Then grab your chance now with this exclusive offer! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers receive an exclusive offer.
Create an account with Bitvavo via the button below and receive a welcome gift of 10 euros completely free. And that’s not all – you also don’t pay trading fees on your first 10,000 euros in transactions. Register now!
Source: https://newsbit.nl/grote-bitcoin-miner-investeert-240-miljoen-in-nieuwe-apparatuur/
