Electricity spending in connection with bitcoin mining activities is known to be the biggest cost factor in the Bitcoin system. For miners it would be a dream they could implement at this point of austerity measures. This is exactly what Bitfarms achieves through good electricity contracts, as it is currently known.
Amazingly low spending on bitcoin mining
Lower bitcoin mining costs are logically a competitive advantage and the basis for high profits. Bitfarms Technologies Ltd. is listed on the Tel Aviv Stock Exchange and has published the latest half-year results.
The first semi-annual report shows that in the first six months of 2018, in addition to 1,923 bitcoins (BTC), the company also created 567 ethers and tokens for some other cryptocurrencies. But it is not just the number of coins that is particularly interesting.
With $ 1,567 per Bitcoin, the price is extremely low – a comparison to the current price of over 7,050 US dollars (as of 01.09.2018) shows how efficient the company works.
Renewable energy at an affordable price as a basis
The reason for the low costs lies in the cheap electricity from renewable energy that is available to the company on the Canadian electricity market. The low cost of bitcoin mining is certainly one of the reasons for a good gross profit of $ 12.3 million in the first half of this year. Locally in Canada – more specifically in Quebec – the company Bitfarms is working with a growing workforce on the creation of their own data centers.
The company receives the favorable electricity for mining through a contract with the supplier Hydro-Sherbrooke. The agreements currently cover an amount of 98 megawatts.
Bitfarms continues to plan clean mining on a grand scale
Last but not the least, this quantity should help with the construction of a new “mega plant” that Bitfarms wants to build on the acquired land at the Sherbrooke site. The fact that clean energy is used in mining is one aspect that sets the company apart from some competitors in the market, according to its CEO Wes Fulford.
Clear goal: To consolidate the pre-rider role within the global blockchain industry without being unnecessarily burdensome on the environment.