The situation of many bitcoin miners has improved considerably in recent months. Bitcoin’s new capabilities thanks to Ordinals and BRC-20 have increased transaction costs, which eventually ended up with miners. Bitfarms has also benefited greatly from the situation, although it also sold almost all of the coins it mined in May.
Large miner Bitfarms sells bitcoins
In a press release writes the company that it has mined 459 BTC in May. That’s more than what it dragged in in previous months this year. Only January was more successful. It is even more than what it has mined in any month in 2022. In total, it has already collected 2,135 BTC in 2023. That is already more than the 1,798 BTC of 2022, while 2023 is not even half over.
This can be explained by the fact that it has considerably expanded its production capacity. For example, it received 2,900 ASIC mining machines for the Argentina site in April. The goal is to grow Bitfarms’ total hashrate by 6 exahash per second (EH/s) by the end of Q3 this year. Before the arrival of the new ASIC hardware, this target was still at the end of the fourth quarter.
Meanwhile, in May it sold 414 BTC, or 90% of all coins it mined last month, for $11.3 million. In doing so, it has reduced its debt by $1.8 million. In addition, it has added 45 BTC to its balance, bringing the total to 510 BTC. That’s worth about $13.8 million. The rest of the money put it aside.
Bitcoin mining competition higher than ever
The significant increase in the number of bitcoins mined by Bitfarms is striking. The mining difficulty don’t lie; the competition is cutthroat. This value has reached a new all-time high, which means miners are competing more for the same number of bitcoins.
Also, on-chain data last month showed that some miners are selling their proceeds again. It could be that it was about Bitfarms activity.