Bitfarms sells 60% of August Bitcoin production amid rising network difficulty

Bitfarms sold more than 60% of its Bitcoin production in August due to increasing network difficulty.

Canadian Bitcoin (BTC) miner Bitfarms announced that it sold approximately 63% of the Bitcoins it produced in August, or 147 BTC out of the 233 BTC it produced during the month.

The Toronto-based company noted in its August 2024 update that the sale was highlighted as part of its focus on active treasury management amid “an increase in average network difficulty.”

The sale generated approximately $8.8 million and added to Bitfarms’ liquidity while allowing the company to grow its Bitcoin holdings. Despite the challenging conditions, Bitfarms added 86 BTC to its treasury, bringing the total to 1,103 BTC, worth approximately $65.1 million as of August 31, 2024.

Bitfarms production by August | Source: GlobeNewswire

August was a particularly difficult month for Bitfarms, with network difficulty down 1.3%, a modest reprieve after months of increasing difficulty. The company’s total Bitcoin production fell to 233 BTC, down 8% from 253 BTC in July and almost 40% from 383 BTC in August 2023.

The decrease in output was partially offset by Bitfarms’ ongoing efforts to optimize its mining operations. The company received and began installing 2,744 new T21 miners from Bitmain, replacing underperforming units. By the end of August, Bitfarms’ operational capacity reached 11.3 EH/s, representing a 102% increase year-on-year and a 2% gain compared to July.

Bitfarms remains hopeful for the future

As the Bitcoin network continues to evolve, Bitfarms aims to position itself to adapt to the changing landscape. According to the report, average throughput remains at 25 watts per terahash. However, the decline in average BTC per EH/s — from 25 BTC in July to 22 BTC in August — reflects the ongoing strain of increasing network difficulty.

The report comes after the company’s main rival Riot Platforms issued a public statement urging Bitfarms shareholders to support changes to Bitfarms’ board at its October 29 meeting, expressing concerns over “broken governance.”

In its statement, Riot criticized Bitfarms for what it described as “defensive” tactics to strengthen its current board, including its recently announced acquisition of Stronghold Digital Mining Inc. The company also questioned the timing and terms of the $175 million deal, suggesting that the deal was designed to benefit former executives whose “focus was on preserving their own positions.”