Bitfarms (NASDAQ:BITF), a cryptocurrency mining company, has published its latest Bitcoin (BTC) mining update for December 2022 and the entire year. While the publicly-listed miner produced 50% more cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term than it did in 2021, it increased its BTC sales to cover ongoing operating costs and liabilities.
According to the press release published on Tuesday, Bitfarms mined 496 BTC in December, compared to 453 mined last month and 363 mined in the same period a year earlier. The newest production number translates to a significant year-over-year increase and visible growth of available computing power.
The available Bitfarm’s hash rate has doubled over the year, rising from 2.2 exahashes per second (EH/s) reported in December 2021 to 4.5 EH/s today.
For the entire of 2022, the number of BTC mined reached 5,167, growing 49.6% compared to the 3,453 reported for 2021. This means that the company mined more than 14 BTC daily during the last year. The average for December came in at 16 BTC, the equivalent of $265,600 per day, considering market prices as of 31 December 2022.
“With the 496 BTC mined in December, our total 2022 BTC mined reached 5,167, up 50% over 2021. We averaged 16.0 BTC mined per day during December. In the month, we deployed new miners and underclocked our least cost-efficient miners. This improved their efficiency by 15%, resulting in a reduction of nearly 4 MW of power consumption and representing substantial cost savings,” Ben Gagnon, the Chief Mining Officer of Bitfarms, said.
Bitfarms Mining Operations
In December, Bitfarms temporarily suspended Quebec farm operations in support of the local community amid the onslaught of extreme winter, restoring some 4,000 megawatt hours (MWh) of power to the local grids. Such energy curtailments occur every winter and are a normal part of the miner’s operations.
However, the company has expanded its operations at two other farms, providing access to additional electrical power and mining potential.
“In December, we energized the remaining portions of The Bunker and Garlock farms, executing our Canadian expansion plan two and one-half months ahead of schedule,” Geoff Morphy, the CEO of Bitfarms, said.
“We have positioned ourselves for strategic growth with minimal cash outlay in 2023.”
Higher Production with Lower Revenues
Although the publicly-listed miner was able to increase its Bitcoin production significantly, the overall financials seemed to deteriorate in 2022. According to the financial report for the three months that ended 30 September 2022, revenue stood at $33.2 million, falling from $44.8 million reported in the same period a year earlier.
Net loss in the third quarter was $84.8 million after the company earned $23.7 million a year earlier. In the first nine months of 2022, the miner’s loss reached $222.2 million. The main reason for the deepening loss is the rapidly falling prices of the major cryptocurrencies. However, the increased hash rate
Hash Rate
A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.
A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate. Read this Term values and higher BTC production partially offset the results and reduced financial stress.
To cover its liabilities and rising costs of conducting daily business, Bitfarms increased the number of Bitcoins it sold. In November, it redistributed 853 BTC, while the number rose to 1,755 BTC. By comparison, only 35 BTC had been sold a year earlier. However, the company managed to repay the loan secured in BTC fully.
Bitfarms (NASDAQ:BITF), a cryptocurrency mining company, has published its latest Bitcoin (BTC) mining update for December 2022 and the entire year. While the publicly-listed miner produced 50% more cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term than it did in 2021, it increased its BTC sales to cover ongoing operating costs and liabilities.
According to the press release published on Tuesday, Bitfarms mined 496 BTC in December, compared to 453 mined last month and 363 mined in the same period a year earlier. The newest production number translates to a significant year-over-year increase and visible growth of available computing power.
The available Bitfarm’s hash rate has doubled over the year, rising from 2.2 exahashes per second (EH/s) reported in December 2021 to 4.5 EH/s today.
For the entire of 2022, the number of BTC mined reached 5,167, growing 49.6% compared to the 3,453 reported for 2021. This means that the company mined more than 14 BTC daily during the last year. The average for December came in at 16 BTC, the equivalent of $265,600 per day, considering market prices as of 31 December 2022.
“With the 496 BTC mined in December, our total 2022 BTC mined reached 5,167, up 50% over 2021. We averaged 16.0 BTC mined per day during December. In the month, we deployed new miners and underclocked our least cost-efficient miners. This improved their efficiency by 15%, resulting in a reduction of nearly 4 MW of power consumption and representing substantial cost savings,” Ben Gagnon, the Chief Mining Officer of Bitfarms, said.
Bitfarms Mining Operations
In December, Bitfarms temporarily suspended Quebec farm operations in support of the local community amid the onslaught of extreme winter, restoring some 4,000 megawatt hours (MWh) of power to the local grids. Such energy curtailments occur every winter and are a normal part of the miner’s operations.
However, the company has expanded its operations at two other farms, providing access to additional electrical power and mining potential.
“In December, we energized the remaining portions of The Bunker and Garlock farms, executing our Canadian expansion plan two and one-half months ahead of schedule,” Geoff Morphy, the CEO of Bitfarms, said.
“We have positioned ourselves for strategic growth with minimal cash outlay in 2023.”
Higher Production with Lower Revenues
Although the publicly-listed miner was able to increase its Bitcoin production significantly, the overall financials seemed to deteriorate in 2022. According to the financial report for the three months that ended 30 September 2022, revenue stood at $33.2 million, falling from $44.8 million reported in the same period a year earlier.
Net loss in the third quarter was $84.8 million after the company earned $23.7 million a year earlier. In the first nine months of 2022, the miner’s loss reached $222.2 million. The main reason for the deepening loss is the rapidly falling prices of the major cryptocurrencies. However, the increased hash rate
Hash Rate
A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate.
A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ledgers that run on Proof-of-Work (PoW) algorithms.Hash Rate and Crypto MiningPoW algorithms require the computers that uphold the network and process transactions (called nodes) to solve complex equations in order to reach consensus, or agreement on whether or not a transaction. This process is called mining. Miners are chosen based on which one of them has the most powerful equipment–in other words, the highest hash rate. Read this Term values and higher BTC production partially offset the results and reduced financial stress.
To cover its liabilities and rising costs of conducting daily business, Bitfarms increased the number of Bitcoins it sold. In November, it redistributed 853 BTC, while the number rose to 1,755 BTC. By comparison, only 35 BTC had been sold a year earlier. However, the company managed to repay the loan secured in BTC fully.