Bitfarms Ltd. (NASDAQ: BITF) shares are exhibiting an upward trajectory on the US market today, experiencing a notable surge of 16.92% to attain a valuation of $2.50 in the current session. The ascent in Bitfarms stock value, despite the absence of immediate news, prompts an examination of recent developments to glean a more comprehensive understanding of the recent momentum in BITF stock.
In its latest monthly update for November 2023, Bitfarms (BITF) disclosed a robust performance amidst escalating network difficulty stemming from increased miner participation. This trend is particularly noteworthy as the company approaches the 2024 Halving, prompting BITF to instigate a comprehensive fleet upgrade plan.
A decisive move in this direction was the firm’s acquisition of 35,888 high-performance Bitmain T21 miners through a firm purchase order, slated for delivery between March and May 2024. BITF strategically deployed these newly acquired miners across seven of its eight existing farms in Quebec, concurrently with the development of the new Paso Pe site in Paraguay.
The anticipated outcome of these initiatives is a projected 29% augmentation in operational capacity to 310 MW and an 88% boost in hashrate to 12 EH/s by the first half of 2024. Bitfarms’ strategic upgrade path positions the company for a substantial surge in hashrate during the first half of 2024, as it undertakes the installation of one of the largest fleets of air-cooled miners presently available.
The meticulous alignment of capital allocation with a strategic miner deployment schedule not only ensures readiness for the upcoming Halving but also places the company in a favorable position to capitalize significantly on the anticipated Bitcoin bull market.
While the production of 392 BTC in November represents a 1.5% decline from October, this decrease is attributed to a 19.0% increase in network difficulty, underscoring the persistent strong demand for miners leading up to the 2024 Halving.
Over the eleven months concluding on November 30th, network difficulty surged by 92.2%, while the BTC price experienced a notable uptick of approximately 128.4%, resulting in a commendable 33.9% enhancement in production economics measured by USD/TH/day.
