Bitfarms becomes a client of the Foundry USA mining pool

The Toronto-listed Bitfarms has joined the Foundry USA mining pool, a subsidiary of Barry Silbert’s DCG.

As part of the deal, Foundry USA will help Bitfarms acquire 2,465 Whatsminer M30S devices for Bitcoin mining.

1,465 of the 2,465 miners were installed in Q3 2020. After the deployment, Bitfarms’ hashrate rose by 11% (by 133 PH/s).

Foundry, thanks to strategic relationships with manufacturers of Bitcoin mining devices, enables mining companies to gain early access to miners. This is critical in the face of observed shortage of chips, which has led to delivery delays of 8–12 months and prepayment demands of 50–100% of the equipment cost.

According to Foundry representatives, the company was responsible for almost half of the North American hashrate growth in 2020.

Bitfarms took delivery of the first batch after paying a 10% down payment (~$1 million) of the order value. With current Bitcoin prices, the company expects to recoup the initial investment in less than a month and to generate positive cash flow over three to five years.

Under similar terms, Bitfarms will obtain financing to purchase another 1,000 Whatsminer M30S with a total hashrate of 90 PH/s in three tranches during September–November.

In early 2022, Foundry will extend Bitfarms a loan of $10 million to further boost hashrate.

Foundry USA also offers ‘mining-company financial-management services’. This arises from the seamless integration of the pool with Genesis, another DCG subsidiary.

The service includes the ability to generate revenue from mined coins, secure storage, bitcoin-collateralised lending, use of derivatives, and ‘smooth’ liquidation.

In March 2021, Canadian mining firm Hut8 joined Foundry USA.

In January 2021, Digital Currency Group founder Barry Silbert promised to propel Foundry to the top among U.S. mining pools.

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