Bitfarms, a leading Bitcoin mining company, has achieved a significant milestone in its operations by hitting a new hashrate high of 5 exahash per second (EH/s), equivalent to 5 quintillion hashes per second. This new all-time high was made possible by the expansion of production at the company’s mining farm in Rio Cuarto, Argentina, which began operations last year.
The facility in Argentina immediately boosted Bitfarms’ hashrate to 4.1 EH/s from 3.9 when it went live in September 2021. Bitfarms has continued to increase its hashrate by taking advantage of low energy costs in the region. The company has now announced that it is targeting a hashrate of 6 EH/s by the end of this year, as it takes advantage of further expansion opportunities.
The growth was triggered by its Argentine branch
The expansion in Bitfarms’ mining operations in Argentina has been the primary driver of its recent growth. The company has been able to take advantage of the low energy costs in the region to increase its hashrate and lower its overall cost of mining Bitcoin. The energy costs for the site are currently below $0.03 per kWh, giving Bitfarms a “best-in-class average cost of Bitcoin mined,” according to the company’s CFO, Jeff Lucas.
The Argentina project was first announced in April 2021, with the initial contract set to last for eight years. Bitfarms has already purchased another 6,200 new Bitmain and MicroBT miners, which are expected to bring the company’s total hashrate to 5.7 EH/s once activated. Even more orders for new equipment are currently in the works.
The success of its expansion in Argentina underscores the importance of low energy costs for the mining industry. By locating its operations in regions with low energy costs, Bitfarms has been able to achieve significant growth while keeping its overall costs low. The company’s mining facilities span across Canada, the U.S., Paraguay, and Argentina. While the company uses hydroelectric power to mine Bitcoin at its other sites, the Argentina location uses natural gas.
Bitfarms highlights plans for the future
Bitfarms’ recent achievements in Argentina have allowed the company to expand its operations and pursue new growth opportunities. According to the company’s CEO, Geoff Morphy, the new hashrate high represents the culmination of the time and effort that Bitfarms has put into achieving its aims.
The firm is now targeting a hashrate of 6 EH/s by the end of this year, and the company has already purchased additional mining equipment to help it reach this goal. The chief mining officer, Ben Gagnon, has said that the new equipment will shortly be in transit and should bring the company’s total hashrate to 5.7 EH/s once activated.
The company’s focus on expansion and growth is part of a broader trend in the Bitcoin mining industry, as companies seek to take advantage of the growing demand for Bitcoin and the potential for higher profits. With its focus on low energy costs and efficient mining practices, Bitfarms is well-positioned to continue its growth and capitalize on the opportunities in the Bitcoin mining market.