Bitfarms (NASDAQ:BITF) generated 233 Bitcoin (CRYPTO:BTC) in August, valued at $13.9 million. Despite a 2% increase in its operating hashrate, bitcoin production decreased by 8% compared to July.
What happened
According to BitFinanzas, this drop was attributed to an increase in average network difficulty levels. Additionally, August production represented a 39% year-over-year decrease, impacted by the halving event in April.
Bitfarms sold 147 BTC, worth approximately $8.8 million, and added 86 BTC to its treasury, bringing its reserves to 1,103 BTC, valued at $65.1 million.
In August, Bitfarms agreed to acquire Stronghold Digital (NASDAQ:SDIG) in a deal valued at $175 million. Bitfarms CEO, Ben Gagnonsaid that this acquisition will allow the company to expand its capacity to 950 MW by the end of 2025.
On the other hand, Riot Platforms (NASDAQ:RIOT) attempted to acquire Bitfarms in April for roughly $950 million but withdrew its offer in June. Riot remains Bitfarms’ largest shareholder with a 19.9% stake.
In an open letter, Riot CEO, Benjamin Yiand the CEO, Jason Lesexpressed concerns about Bitfarms’ governance and the Stronghold acquisition, advocating for further board changes.
You can also read: Analyst predicts Bitcoin crash in September, sees buying potential
Why is it important?
Bitfarms’ recent acquisition of Stronghold Digital and tensions with Riot Platforms come at a critical time for the Bitcoin Mining industry. According to a recent report, Bitcoin mining companies are exploring strategic partnerships with the artificial intelligence (AI) sector to leverage their infrastructure and expertise in energy management.
Furthermore, the increase in Bitcoin’s network difficulty has further complicated miners’ profitability. Many small and medium-sized businesses have struggled to stay afloat due to rising production costs and halving revenues since the last halving in April.
Bitfarms’ acquisition of Stronghold could be a strategy to increase its capacity to address these challenges, while Riot’s concerns about Bitfarms’ governance reflect the growing pressure on the industry to adapt to new market realities.
Photo courtesy of Pixabay
You can also read: Goldman Sachs predicts strong gold price rise by 2025
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