©Reuters.
TORONTO, Ontario and BROSSARD, Quebec – Bitfarms Ltd. (NASDAQ/TSX: BITF), a leading player in the Bitcoin mining industry, announced a significant expansion of its mining operations. The company exercised an option to acquire 28,000 Bitmain T21 miners and purchased an additional 19,280 Bitmain T21 miners, as well as 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 expects to be a bull market for Bitcoin. Geoff Morphy, Chairman and CEO of Bitfarms, said that the acquisition of these miners is a strategic move to quickly improve the company’s operating parameters, including hash rate, energy efficiency and costs. of exploitation by terahash.
The newly acquired miners are expected to be delivered within the year and allow Bitfarms to reach a target hashrate of 21 EH/s in 2024. The company also plans to liquidate its legacy miners to offset the cost of the new equipment.
Bitfarms, founded in 2017, operates 11 bitcoin mining facilities across Canada, the United States, Paraguay and Argentina, with two additional sites under development. The company is known for its commitment to sustainability, primarily using hydroelectric power and long-term electricity contracts to minimize its environmental footprint.
This news is based on a press release from Bitfarms Ltd.
InvestingPro Insights
While Bitfarms Ltd. (NASDAQ/TSX: BITF) is preparing for a bitcoin bull market thanks to 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 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 as of Q4 2023, which highlights the company’s current lack of profitability.
InvestingPro tips reveal that Bitfarms has performed strongly over the past year, with a total return of 276.06%. This performance is complemented by a sharp increase in the price over the last six months, with a return of 142.73%. However, the company does not pay dividends to shareholders, which may influence investment decisions for those looking for regular income.
Additional insights from InvestingPro indicate 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 richly valued relative to its book value and earnings before interest, taxes, depreciation and amortization. For investors looking for more in-depth analysis and advice, 11 more InvestingPro tips are available for Bitfarms at https://www.investing.com/pro/BITF. To access these tips and further enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off an annual or bi-annual Pro and Pro+ subscription.
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