Bitfarms to acquire Bitmain Bitcoin miners for $95.5 million

The mining company Bitfarms placed an order to supply 35,888 Bitcoin miners Antminer T21 from Bitmain at $2,660 per unit.

? #Bitfarms Initiates Transformative Fleet Upgrade that Supports 17 EH/s and 391 MW in 2024

— Purchases 35,888 Bitmain T21 miners to be delivered and installed in H1 2024 —
— Provides Q2 2024 guidance of 310 MW and 12 EH/s at 25 w/TH —
— Secures option for an additional 28,000… pic.twitter.com/htkKowKdXw

— Bitfarms (@Bitfarms_io) November 27, 2023

According to the figures provided, the deal is worth about $95.5 million. Delivery of the equipment is expected between March and May 2024.

Bitfarms also secured an option to purchase an additional 28,000 Antminer T21s.

After deploying the purchased units, the company expects to increase its hashrate to 12 EH/s with a contracted capacity of 310 MW in the first half of 2024. By year-end, the figures are expected to reach 17 EH/s and 391 MW, respectively.

According to Bitfarms’ president and CEO Jeff Morfi, launching a comprehensive fleet-upgrade program was made possible by “the most attractive prices for equipment since 2020.” The firm19s miners’ average energy efficiency is expected to rise to 23 W/TH as a result, he added.

“Our patience has paid off. These next-generation T21s are selling at a contract price of $14 per TH at 190 TH/s per unit,” said Bitfarms’ chief mining officer Ben Ganyo.

Bitmain introduced the Antminer T21 in October. The deployment trails slightly in hash rate and power consumption behind the August-announced flagship S21.

To partly finance the equipment purchase, Bitfarms has tapped C$60 million ($44.1 million at the time of writing) raised through an additional private placement of shares.

#Bitfarms Announces C$60 Million Private Placement with U.S. Institutional Investors

The net proceeds of the private placement will be used by the Company mainly to acquire additional miners, expand infrastructure, and improve its working capital position.

? Press Release:… pic.twitter.com/gzjxe0IsxO

— Bitfarms (@Bitfarms_io) November 24, 2023

Earlier in April, the company announced the expansion of its Argentina mining center capacity to 100 MW.