The local benchmark in cryptocurrency mining, Bitfarms, is embarking on a vast technological expansion project. The company, whose operational headquarters are in Brossard, has entered into an agreement with its main Chinese supplier to expand its fleet of 48,000 new aircraft.
At a time when bitcoin is traded at nearly 65,000 Canadian dollars, the announcement seems as logical as it is strategic. Bitfarms, which operates the largest cryptocurrency mines from Magog to Saint-Hyacinthe, is undertaking a large growth plan.
This expansion naturally involves computer tools. The company has just concluded a commercial agreement, the amount of which has not been disclosed, with the Chinese manufacturer MicroBT for the supply of 48,000 new miners.
“It has become our supplier of choice. Over the past eight months, we have acquired over 12,000 mining devices from it. They are the most reliable, efficient and consistent ”, specifies the management of Bitfarms.
Miners, those machines that solve math equations useful for blockchains, are expected to arrive in batches every month, starting in January 2022. The devices will be installed in existing and future facilities as they occur, since Bitfarms plans to expand its mining sites, mainly in Sherbrooke.
Reduced computing power
The production capacity of the Quebec miner will thus gradually increase in strength. Total computing power is currently around 1 pe / s (this unit represents the resolution of 1 billion trillions of digital conversions – or hashes – per second). By the end of the year, Bitfarms plans to reach 3 PE / s and, at the end of the expansion at the end of 2022, it is even targeting 8 PE / s.
Increasing its hash rate by a factor of eight will increase Bitfarms’ market share and normally inflate the number of bitcoins collected each day. What the CEO, Emiliano Grodzki is calling for. “With this equipment purchase agreement, Bitfarms is positioned to remain among the world’s leading cryptocurrency mining companies.”
However, all is not candy pink in Bitfarms’ provisional agenda. Even though the company, a long-standing player since 2017, has taken care to base its operations on a vertically integrated structure (with its own technical repairers, its own engineers) and operates five industrial-scale facilities in Quebec, the economic situation does not will not necessarily help. If only at the level of manufacturing components of mining devices or shortages hitting the semiconductor market.
That being said, rarely has business been so successful for this industry niche. According to data produced by CoinMetrics, the global bitcoin mining industry generated more than US $ 1.36 billion last February. Which erases the previous record of December 2017 when, at the height of the bull market, miners had accumulated $ 1.25 billion in income. The network fees alone, a kind of fee collected by miners to keep Bitcoin safe, amounted to US $ 186 million, or more than 13% of total revenue.