Bitfarms considers the miners of Chinese manufacturer MicroBT to be efficient and reliable. The company hopes to “substantially” increase its daily Bitcoin earnings.
In 2020, Canadian mining company Bitfarms faced serious economic obstacles due to the COVID-19 pandemic. This year, it looks as though they will have a chance to recover.
The company announced that it bought 48,000 new miners from Chinese manufacturer MicroBT. The devices will arrive as of January 2022, and they expect the last batch to arrive in December of that same year.
“We will install the miners in our new facilities and those that are currently under development. If market conditions change, Bitfarms will decide from among several deliveries and contract adjustment options,” the company states.
Bitfarms says that they have purchased more than 12,000 mining rigs from the Chinese company to date. They consider that this mining equipment is “reliable, efficient and consistent.”
They Are Seeking to Increase Their Hash Rate
The Canadian cryptocurrency mining company is seeking to increase its current hash rate of 1.0 EH/s. They hope to reach 3.0 EH/s by the end of 2021 and then exceed 8.0 EH/s by the end of 2022.
“Increasing our hash rate by a factor of eight will increase our company’s share of the global market. That will make the amount of Bitcoin that we earn daily grow substantially,” the company explained.
Emiliano Grodzki, CEO of Bitfarms, said that they hope the deal with MicroBT will benefit them. They want to position themselves above the companies in the sector that are listed on the global stock market.
“This purchase and expansion will be the cornerstone of our corporate growth strategy until 2022. The supply of miners will be one of the greatest challenges in the future as wafers to create semiconductor chips are scarce. This component is of vital importance for mining platforms,” added the executive.
The purchase of mining equipment by the Canadian company has contributed to China gradually losing ground in this sector. Currently, there is a growing North American interest in participating in this activity. A great movement is brewing to challenge the dominance of cryptocurrency mining that the Asian country has traditionally maintained.
Bitfarms Reaches the Stock Market
Canadian company Bitfarms announced in January that they had raised 20 million Canadian dollars (CAD). That amount came from the sale of more than 8 million common shares of the firm.
During that private transaction, they entered into agreements with US institutional investors. Upon completion of the sale of the shares, they will use the proceeds to purchase additional mining equipment. Besides, they will expand the infrastructure and improve their working capital position, reflected in the agreement that they signed with MicroBT.
The relevance of cryptocurrency mining companies is increasingly evident globally. Canada and other countries such as the United States are seeking to challenge China’s supremacy in this sector. Bitfarms’ acquisition of mining equipment is just one example of what is happening in the world.
By Alexander Salazar