Bitfarms, a Canadian Bitcoin mining company, has exercised its option to purchase a significant number of Bitmain T21 ASIC miners. The order includes 28,000 Bitmain T21 miners, 19,280 additional T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners. The purchase was made at a price of $14 per terrahash (TH) for the T21 miners and $17.50/TH for the S21 miners, totaling 51,908 ASICs.
The retail price of each Bitmain T21 ASIC miner is approximately $3,000, and it has a hash rate of 190 TH/s. Bitfarms’ president and CEO, Geoff Morphy, explained that the company secured these additional miners in anticipation of expected hardware price increases. The ASICs are scheduled to be delivered this year and are expected to increase Bitfarms’ total hash rate to 21 exahash per second (EH/s), which is equivalent to around 3% of the Bitcoin network’s processing capacity.
On March 8, Bitfarms announced a $375 million equity offering program. The company plans to use the net proceeds primarily for capital expenditures to support the growth and development of its existing mining operations, as well as for working capital and general corporate purposes. Bitfarms currently operates 11 Bitcoin mining facilities and has plans for further expansions in Canada, the United States, Paraguay, and Argentina.
Despite the ongoing bull market in cryptocurrencies, Bitfarms’ stock has experienced a decline of over 38% this year, along with its peers. This trend can be attributed, in part, to the upcoming Bitcoin halving in April, which will reduce miners’ block rewards by half. However, Bitfarms has been actively expanding its operations in preparation for this event.
In related news, Bitcoin recently reached new all-time highs, breaching the $71,000 mark for the first time.