Bitcoin Mining Firm BitFarms Makes more BTC Due to China Ban

Bitcoin Mining Firm BitFarms Makes more BTC Due to China Ban

On Wednesday, July 14, Bitcoin mining company, BitFarms, announced that its productivity doubled. It was at large due to the Chinese crackdown and miner migration.

The publicly traded North American crypto mining firm stated that it mined 1,357 BTC in the first half of 2021. This was the largest amount of Bitcoins mining in the region. In relation to this, an analyst recently forecasted that 400 BTC would come out in July. This will double the 199 it mined last January and over 50% of June’s 365 BTC mined.

Also, BitFarms stated that over 95% of its production in 2021, which is 1,445 BTC, was deposited into custody on July 12.

Earlier this month, Bitcoin experienced the largest drop in mining difficulty due to China’s crackdown, which resulted in the closure of operations.

Since late May, traders report that there was a 42.5% fall in difficulty. More than half of that occurs this July. Therefore, BitFarms is now producing higher quantities of Bitcoin at a lower cost per unit.

An analyst said that the company’s productivity boost did not stop its stock from taking a hit in late June.

The firm’s founder and CEO, Emiliano Grodzki, said that the crackdown on crypto mining in China had been good news for BitFarm since it nearly doubled its market share. He added that they had already installed 1,500 Bitcoin miners from MicroBT in its data center located in Magog, Quebec. They added 120 PH/s of its total production in June this year.

Additionally, the Canadian hydroelectricity mining outfit stated that it is currently supplying power to an estimated 1.5% of the entire Bitcoin network, which has over 99% renewable energy.

Crypto: An Environmental Disaster

However, the co-founder of Coin Metrics, Nic Carter, claimed that the power-hungry crypto-mining industry causes an environmental disaster.

First, he is claiming that Bitcoin draws immense energy as the price soars. This results in increased mining and energy consumption.

Second, he stated that crypto mining gets a lot of power from local resources, which deprives regular customers of electricity.  However, according to one analyst, mining is usually within areas with excess energy.

In China, the majority of the operations occur in four provinces which include Xinjiang, Sichuan, Inner Mongolia, and Yunnan.

Between these areas, there is 63% of global Bitcoin hash power from the fourth quarter of 2019 until the second quarter of 2020. These provinces use a combination of coal, solar, wind, and hydropower.

Another analyst stated that these have a low population density and an overabundance of energy.

Meanwhile, according to the data from Cambridge University, Bitcoin mining has been calculated to consume between 89 to 138 TWh per year.