Bitfarms sold over 60% of August Bitcoin production amid rising network difficulty.
Canadian Bitcoin (BTC) miner Bitfarms announced that it sold nearly 63% of the Bitcoin it mined in August, amounting to 147 BTC out of the 233 BTC generated during the month.
In its August 2024 update, the Toronto-based company highlighted the sale as part of its ongoing focus on active treasury management amid the โincrease in average network difficulty.โ
The sale generated approximately $8.8 million in revenue, contributing to Bitfarmsโ liquidity while allowing the company to grow its Bitcoin holdings. Despite the challenging conditions, Bitfarms added 86 BTC to its treasury, bringing the total to 1,103 BTC, valued at approximately $65.1 million as of Aug. 31, 2024.
August marked a particularly difficult month for Bitfarms, with the network difficulty decreasing by 1.3%, a modest reprieve after months of escalating challenges. The companyโs total Bitcoin production dropped to 233 BTC, down 8% from Julyโs 253 BTC and nearly a 40% year-over-year decline from August 2023โs 383 BTC.
The reduction in output was partially offset by Bitfarmsโ ongoing efforts to optimize its mining operations. The company received and began installing 2,744 new T21 miners from Bitmain, replacing underperforming units. By the end of August, Bitfarmsโ operational capacity reached 11.3 EH/s, a 102% increase year-over-year and a 2% gain compared to July.
Bitfarms braces for future prospects
As the Bitcoin network continues to evolve, Bitfarms aims to position itself to adapt to the shifting landscape. The average operating efficiency remained at 25 watts per terahash, according to the report. However, the decline in BTC per average EH/s โ from 25 BTC in July to 22 BTC in August โ reflects the ongoing challenge of rising network difficulty.
The report comes as its key rival, Riot Platforms, urged Bitfarmsโ shareholders in a public statement to support changes to Bitfarmsโ board at an upcoming Oct. 29 meeting, citing concerns over โbroken governance.โ
In the statement, Riot criticized Bitfarms for what it described as โdefensiveโ tactics to entrench the existing board, including aย recently announced acquisitionย of Stronghold Digital Mining Inc. The company also questioned the timing and terms of the $175 million deal, suggesting it was engineered to benefit legacy directors โwhose focus is maintaining their own positions.โ
