Bitfarms Ltd. (TSXV: BITF), a Canadian block reward mining company, has announced the purchase of 48,000 new ASIC miners from MicroBT. They expect the latest miners to boost their hashing capacity by around 5.0 EH once they’re up and running.
This acquisition, which was revealed in a press release, is part of Bitfarms’ growing partnership with the hardware manufacturer. The publicly traded company has purchased over 12,000 new-generation blockchain miners from a Chinese hardware manufacturer in the last eight months.
The first shipment of miners is expected to arrive in January 2022, according to Bitfarms and MicroBT. Following that, shipments will be made on a monthly basis, with the final batch of mining rigs arriving in December 2022.
Bitfarms claimed that the blockchain miners will be installed at existing facilities as well as new mining farms currently under construction. The deal’s exact terms were not revealed, but Bitfarm confirmed that it has already negotiated distribution and contract adjustment options in the event market conditions deteriorate.
With this new addition, the Bitfarms mining fleet’s total output capacity is expected to increase from over 1.0 EH now to 3.0 EH by the end of the year.
With this new addition, the Bitfarms mining fleet’s total output capacity is expected to increase from over 1.0 EH now to 3.0 EH by the end of 2021. By the end of 2022, it would have surpassed 8.0 EH.
With this equipment purchasing deal, Bitfarms is placed to stay in the top tier of publicly traded crypto mining companies in the world, according to Emiliano Grodzki, CEO.
“The supply of miners will be one of the greatest challenges in for the foreseeable future due to a global shortage of wafers used to create semiconductor chips…Our strategy will be to continue to grow our own infrastructure and professional operations and conduct mining in our own facilities, which increases operational efficiency and profitability.”Grodziki added,
Chinese ASIC hardware manufacturers have previously struggled to meet rising demand. The majority of next-generation mines are sold out, forcing smaller block reward mining companies to focus on secondhand markets. The hardware delivery isn’t expected to start this calendar year, according to the Bitfarms announcement.
Following the current trend, Bitfarms is following the playbook of other publicly traded block reward mining firms, which use their vast purchasing power to pre-purchase ASIC mining rigs.