Bitfarms Ltd (TSX: BITF) is looking to start 2023 off on a strong note, with the firm indicating this morning that expansion plans in Canada have been advanced by two and a half months.
The planned expansions at what the firm refers to as its Garlock and Bunker farms were completed during the month of December, with the company also reporting that it underclocked its least cost-efficient miners to improve their efficiency. The latter reportedly resulted in power consumption declining by 4 MW, while improving efficiency by 15%, and the former saw a cumulative 18 MW in additional capacity come online for the company.
The resulting impact is the firm increasing its production capacity to 4.5 EH/s in December, with the firm producing 496 bitcoin during the month, an improvement of 9.5% over the 453 bitcoin produced in November. The improvement comes despite the firm curtailing operations in Quebec for an unspecified period under an energy curtailment plan related to extreme weather conditions that increased local power demands.
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Cumulatively, Bitfarms managed to produce 5,167 bitcoin during 2022, an improvement of over 49% versus the 3,453 produced in 2021. Unfortunately for Bitfarms, the value of bitcoin during the same period fell from $46,230 on January 1, to that of $16,528 on December 31, a decline of 64.2%.
READ: By The Numbers: Bitcoin Miners Are Burning Cash On Each Coin Mined
Outside of production and expansion, the company sold nearly the remainder of its bitcoin holdings during the month. 1,755 bitcoin were sold for gross proceeds of $29.9 million, leaving just 405 in custody as of December 31. The company appears to have used the funds to pay the remaining $16.5 million on a bitcoin-backed facility, which is now fully extinguished. As of month end, the firm reportedly had $31 million in cash and cash equivalents.
Bitfarms also recently underwent a management shake-up, revealing last week that its CEO and co-founder, Emiliano Grodzki, would be leaving the firms C-suite in favor for a position on the firms board. Taking his place will be Geoffrey Morphy, whom previously held the role of Chief Operating Officer at the company.
Justification for the management shake-up was not provided.
Bitfarms last traded at $0.56 on the TSX.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
