Canadian crypto miner Bitfarms announced the purchase of over 51,000 new miners from Bitmain.
Canadian crypto miner Bitfarms announced on March 11, 2024, that it was purchasing 51, 908 new crypto miners from Bitmain. The farmers include:
- 28,000 Bitmain T21 miners from a prior purchase option;
- An additional 19,280 Bitmain T21 miners;
- 3,888 Bitmain S21 miners; and
- 740 Bitmain S21 Hydro miners.
The T21 series miners cost roughly $3000 each, meaning that the whole purchase runs over $150 million. Bitfarms stated in a press release that the company was making the purchase in order to increase efficiency and lower operating costs per terahash.
While Bitfarms did not mention it, the increase in efficiency is required to stay competitive after the upcoming Bitcoin halving cuts the reward for mining a bitcoin. The company did state that the sale of the miners being replaced.
Bitcoin sitting above $70,000
The purchase comes as Bitcoin reaches new all time highs ahead of the halving expected in April. After first breaking $70,000 and retreating last week, BTC crossed the line and stayed above it on March 11.
Bitcoin’s position at or near all time highs will be tested this week as the U.S. announces Consumer Price Index information for February. Investors will be watching this very carefully, as the January figure did not show enough of a slackening of inflation to warrant an interest rate cut before summer. In two of the last three halvings, the price of BTC dropped and then recovered within five months. For example, in May 2020, before the halving, Bitcoin was trading below USD 8000, and in March 2021, was at $11,500.
