© Reuters.
TORONTO, Ontario and BROSSARD, Quebec – Bitfarms Ltd. (NASDAQ/TSX: BITF), a prominent player in the mining industry, has announced a significant expansion of its mining operations. The company exercised an option to acquire 28,000 Bitmain T21 miners and also purchased an additional 19,280 Bitmain T21 miners, along with 3,888 Bitmain S21 miners and 740 Bitmain S21 Hydro miners.
The acquisition, priced at $14/TH for T21 miners and $17.50/TH for S21 variants, comes as the company prepares for what it anticipates will be a bull market for Bitcoin. Geoff Morphy, president and CEO of Bitfarms, said that protecting 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 a year and are expected to enable Bitfarms to reach a target hash rate of 21 EH/s in 2024. The company also plans to liquidate its older miners to offset the cost of the new equipment.
Bitfarms, founded in 2017, operates 11 Bitcoin mining facilities in Canada, the United States, Paraguay and Argentina, with two additional sites in development. The company is known for its commitment to sustainability, primarily using hydropower and long-term energy contracts to minimize its environmental footprint.
This news is based on a press release from Bitfarms Ltd.
InvestingPro Insights
As Bitfarms Ltd. (NASDAQ/TSX: BITF) prepares for a Bitcoin bull market with its recent expansion in mining operations, investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Bitfarms has a market capitalization of $807.81 million. Despite the company's aggressive growth strategy, it is important to note that Bitfarms has been trading with a negative price-to-earnings (P/E) ratio of -9.64 over the trailing twelve months through Q4 2023. , which highlights the company's current lack. of profitability.
InvestingPro tips reveal that Bitfarms has seen strong returns over the past year, with a total price return of 276.06%. This performance is complemented by a large price increase in the last six months, with a return of 142.73%. However, the company does not pay dividends to shareholders, which may influence the investment decisions of those seeking regular income.
Additional information from InvestingPro indicates 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 valued highly relative to its book value and its earnings before interest, taxes, depreciation, and amortization. For investors looking for deeper analysis and advice, there are 11 additional InvestingPro tips available for Bitfarms at To access these tips and further enrich your investment strategy, use the coupon code FORECASTS24 to get an additional 10% discount on an annual or bi-annual Pro and Pro+ subscription.
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