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© Reuters.
TORONTO, Ontario and BROSSARD, Quebec – Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading player in the mining industry, has announced a significant expansion of its mining operations. The Company has exercised an option to acquire 28,000 Bitmain T21 miners and has also acquired an additional 19,280 Bitmain T21 miners, as well as 3,888 Bitmain S21 miners and 740 Bitmain S21 Hydro miners.
Priced at $14/TH for the T21 miners and $17.50/TH for the S21 variants, the acquisition comes as the company prepares for what is expected to be a bullish market for Bitcoin. Bitfarms President and CEO Geoff Morphy explained that securing these miners is a strategic move aimed at rapidly improving the company’s operational metrics, including hashrate, energy efficiency and operating costs per terahash.
The newly acquired miners are expected to be delivered within the year and are expected to enable Bitfarms to reach a target hashrate of 21 EH/s in 2024. The company also plans to liquidate its older miners to offset the cost of the new equipment.
Founded in 2017, Bitfarms operates 11 Bitcoin mining facilities in Canada, the United States, Paraguay and Argentina, with two additional locations in development. The company is known for its commitment to sustainability and primarily uses hydropower and long-term electricity contracts to minimize its environmental footprint.
This news is based on a press release from Bitfarms Ltd.
Investing Pro Insights
While Bitfarms Ltd. (NASDAQ/TSX: BITF) is poised for a bullish Bitcoin market with the recent expansion of its mining operations, investors are closely monitoring the company’s financial health and market performance. According to recent data from InvestingPro, Bitfarms holds a market capitalization of $807.81 million. Despite the company’s aggressive growth strategy, it is important to note that Bitfarms has traded at a negative price-to-earnings (P/E) ratio of -9.64 over the last twelve months (as of Q4 2023), highlighting the company’s current shortcomings the profitability.
InvestingPro Tips shows that Bitfarms has delivered strong returns over the last year, with a total price return of 276.06%. This performance is complemented by a strong price increase over the last six months, boasting a return of 142.73%. However, the company does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income.
Further insights from InvestingPro suggest that Bitfarms has a high EBITDA valuation multiple and trades at a price-to-book ratio of 3.07. These metrics suggest that the stock may be highly valued relative to its book value and earnings before interest, taxes, depreciation, and amortization. For investors looking for more detailed analysis and tips, there are 11 more InvestingPro Tips for Bitfarms at https://www.investing.com/pro/BITF. To access these tips and further enrich your investment strategy, use the coupon code PRONEWS24 for an additional 10% off an annual or two-year Pro and Pro+ subscription.
This article was created with the assistance of AI and reviewed by an editor. More information can be found in our terms and conditions.
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