By the end of July, the mining company Bitfarms was unable to reach the hashrate target of 12 EH/s due to performance problems with ~3,000 new installations of Bitmain's Antminer T21.
#Bitfarms Provides July 2024 Production and Operations Update
- Earned 253 BTC in July 2024
- 24.6 BTC/average EH/s
- Added 111 BTC, bringing Treasury to 1,016 BTC
- All five warehouses and eight hydro containers have been fully energized in Paso Pe
- Baie-Comeau expansion to 22… pic.twitter.com/gBfei3OYvd
According to Bitfarms CEO Ben Gagnon, the batch should provide approximately 0.7 EH/s. However, miners overheat even at relatively low temperatures. At the same time, the remaining installations of the series are working normally, and there are no complaints about them, he said.
"Bitmain will quickly replace defective devices at its own expense. The new miners are expected to be deployed in three weeks. We are working closely to resolve these production problems to prevent them in the future, including deliveries in August," he said Gagnon.
Despite the difficulties encountered, the company produced 253 BTC in July against 189 BTC a month earlier. The operational hashrate at the end of the period was 11.1 EH/s, the corresponding July figure was 10.4 EH/s.
The head of Bitfarms noted that the growth is largely due to the commissioning of the flagship enterprise in Paso Pe (Paraguay). The construction of all four buildings at the Iguazu facility at the same time is proceeding "at a rapid pace and on schedule."
Of the bitcoins mined in July, the firm sold 142 BTC for $8.6 million as part of "financial management". The company's reserves have reached 1016 BTC, in accordance with the HODL strategy, Bitfarms also holds positions in long-term call options for 233 BTC.
The company's financial director Jeff Lucas confirmed that plans to reach a hashrate of 21 EH/s by the end of the year remain in force.
Jack Dorsey Saw Opportunities for Block in Bitmain's Problems
Block is able to become a leader in the bitcoin mining chip market and capture most of it. This was stated by co-founder Jack Dorsey during a teleconference on the financial results of the second quarter.
Our Q2 earnings are now available. $SQ https://t.co/oGcnRuz7lv
— Block Investor Relations (@BlockIR) August 1, 2024The entrepreneur called the company's entry into the segment of manufacturers of equipment for mining the first cryptocurrency a "huge opportunity".
Dorsey noted the dominance of Bitmain in the market, noting that the products of the Chinese manufacturer cause complaints about quality.
"Bitmain produces mining chips and equipment that often fail," he said, referring to customer reviews from the segment leader.
He also believes that Block has a technological advantage by using a 3 nm process, whereas Bitmain offers 6 nm chips.
Dorsey also stressed that Block products are open source — this allows miners to adapt them to their own requirements.
In July, the company signed an agreement to supply Core Scientific chips. The deal became one of the largest in the segment in terms of hashrate — 15 EH/s. Bernstein analysts estimated the contract at $300 million based on market conditions.
Recall that in March, Bitdeer ex-founder of Bitmain Jihan Wu tested the SEAL01 bitcoin mining chip using 4 nm technology. In June, the company acquired ASIC developer for bitcoin mining FreeChain.