Bitfarms adds over 1000 mined Bitcoin to its treasury

Bitfarms reported that since commencing its Bitcoin Inventory Pilot Program in early January 2021 it is adding almost all newly mined Bitcoins to its balance sheet. In 2021, through the close of business on June 9, Bitfarms added 1,114 mined Bitcoin to its treasury which is currently worth approximately $43 million based on a Bitcoin price of $39,000.

Backstory

Bitfarms Limited, a company founded in 2017 and headquartered in Toronto, Canada, is a blockchain infrastructure company that mines cryptocurrency coins and tokens in Canada. The company owns and operates server “farms” comprising of computers that primarily validates transactions on the Bitcoin Blockchain and earns cryptocurrency from block rewards and transaction fees. The company also provides electrical services to commercial and residential customers in Quebec, Canada. Bitfarms provides hosting of third-party mining hardware. Bitfarms became the first Bitcoin mining company to list on the Toronto Stock Exchange in July 2019. Nicolas Bonta and Emiliano Joel Grodzki started the company operating as the Chairman and CEO respectively.

Recently, the company announced that it mined its 1000th bitcoin with hydroelectricity this year, assuring and committing to mining Bitcoin with clean energy with zero-emission to help ensure an ecofriendly environment. Bitfarms achieved this milestone a full 9 days ahead of the schedule reported on April 16, 2021.

The company estimated that it has mined the largest amount of Bitcoin with renewable energy. As the hashrate of Chinese miners falls due to the country’s restriction and crackdown on Bitcoin mining in certain provinces, Bitfarms has earned higher transaction fees and increased its share of the total Bitcoin network hashrate. CEO Emiliano Grodzki stated, “Due to the addition of new and more efficient miners to our fleet, we expect to more than double our installed hashrate from now until the end of the year.”

What this means

With the company adding mined Bitcoin to its treasury, it helps with reducing the supply of the flagship cryptocurrency and will ultimately do well for the price of Bitcoin. It also promotes Bitcoin as an asset class to other institutional investors who may be looking at investing in the cryptocurrency market. Bitfarm (BITF) is trading at $4.91, down 6.12% for the day.