Bitfarms (NASDAQ: BITF) stock jumped more than 12% on Friday following the announcement of a land acquisition in Yguazu, Paraguay.
Bitfarms (BITF) recently acquired land in Yguazu, Paraguay, aiming to expand its Latin American capacity by 100 megawatts (MW).
The company disclosed on Wednesday that the purchased land is situated near the Itaipu Dam, providing potential access to renewable energy from one of the world’s largest hydropower sites. Although the transaction value was not revealed, Bitfarms expects to complete the construction by the second half of 2024.
Bitfarms (NASDAQ: BITF) had earlier revealed a preorder for 35,888 units of Bitmain’s Antminer T21 and secured an option to acquire an additional 28,000 T21s. The recent acquisition of land in Yguazu for a 100 MW buildout suggests that Bitfarms is making strides in fortifying its plans to guarantee ample power capacities to exercise the T21 option.
Geoff Morphy, the President and CEO of BitFarm, said,
“In conjunction with our miner redeployment strategy, the Yguazu project will be designed to help provide sufficient infrastructure to achieve a corporate hashrate of 21 EH/s by year-end 2024 should we exercise our recently announced miner purchase order option for additional Bitmain T21 miners.”
Bitfarms Sets Sights on 21 EH/s Hashrate Milestone
The T21 model from Bitmain includes an overclocking feature. In high voltage mode, its hash rate can increase from 190 TH/s to 233 TH/s.
If Bitfarms exercises the option, it could boost its total hash rate to 14.9 EH/s alongside the existing 6.5 EH/s. Yet, reaching the 21 EH/s target with this expansion may demand significantly more power capacity than what has been disclosed thus far.
According to the specifications provided by Bitmain for the T21 model, the shift to high voltage mode is expected to decrease efficiency from 19 J/TH to 22 J/TH. Consequently, Bitfarms will require an additional 327 MW to meet the energy demands for operating all preordered and optional T21s in this high-voltage mode.
In November, when unveiling the T21 acquisitions, Bitfarms detailed its strategy to incorporate up to 14.9 EH/s of T21s by the end of 2024 while gradually phasing out older and less efficient models like WhatsMiner M30S/M31S, which collectively contribute 4.3 EH/s. Initially, the replacement strategy prioritizes the deployment of Antminers over WhatsMiners.
The company targets a 17 EH/s hash rate by increasing power capacity by 151 MW in 2024. However, redeploying the 4.3 EH/s of M30S and M31S miners requires an extra 180 MW. The timing and method of this redeployment are uncertain due to post-halving fluctuations in Bitcoin’s hash price.
Bitfarms (NASDAQ: BITF) Stock Reaction
BITF stock surged 12.56% on Friday. The traders had exchanged hands with 21,702,694 (21.70 million) shares compared to the average daily trading volume of 26.24 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
