Digital Assets: Canadian Bitcoin Miner Bitfarms Plans Massive Capacity Expansion

March 2, 2021 | Digital Assets, News

Bitfarms has inked a deal to purchase 48,000 MicroBT mining rigs.

Bitfarms Ltd. (TSXV: BITF), which uses hydropower to run its bitcoin mining operations in Canada, announced today a deal to purchase 48,000 new MicroBT mining machines. The equipment will boost Bitfarm’s hash rate capacity by about 5.0 EH.

New mining rigs

Shipments will commence in January 2022 with monthly deliveries following thereafter. The final lot will arrive by December 2022. (Intrado GlobeNewsWire)

The new rigs would be installed both at existing facilities and those which are currently in development.

On completed installation of the above machines, including current expansions, Bitfarm’s mining fleet is expected to grow from over 1.0 EH presently to 3.0 EH by the end of 2021 and then to exceed 8.0 EH by the end of 2022.

Boost to efficiency and revenues

The new machines will:

  • increase the company’s hash rate by a factor of eight
  • enhance Bitfarms’ global market share
  • substantially boost the number of Bitcoins earned daily
  • achieve high levels of performance while consuming less electricity than earlier models
  • ensure Bitfarms’ position among the top crypto mining companies in the world

However, Emiliano Grodzki, CEO of Bitfarms, warned that the proposed supply of miners “will be one of the greatest challenges in the foreseeable future due to a global shortage of wafers used to create semiconductor chips which is a vital component in mining rigs.”

However, Bitfarms did not disclose details of the cost of the new machines.

Bitcoin mining getting bigger and bigger

Earlier this month, it was revealed that an unnamed client of Bitriver, the Russian data center and ming operation, imported 20 thousand devices (14 trucks) of crypto mining equipment with a total capacity of 70 MW at the end of December 2020.

According to one estimate, assuming all the equipment is the latest version, the consignment of mining machines could be conservatively worth as much as $50 million.

Further, it could account for as much as 1.1% of the global bitcoin mining capacity.

The owner housed the equipment in a hangar as a Tier-III level data center in Russia’s Bratsk region.

Related Story: As Bitcoin Aims For $50K, Crypto Miners Have $$$ Signs In Their Eyes

Image Credit: Bitfarms                                                   

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