Canadian crypto mining company is eyeing Bitcoin worth ₹96.8 crore this month after China’s crypto crackdown

• Bitfarms, a Canadian crypto mining company, has seen a jump in its Bitcoin production volume as a result of China’s crackdown on cryptocurrencies.
• After the largest Bitcoin difficulty drop earlier this month, Bitfarms projects it can mine 400 Bitcoin this month — a 50% jump over last month.
• The company claims that, as compared to other publicly traded cryptocurrency manic companies, it has mined the largest amount of Bitcoin with renewable energy.

As more Chinese Bitcoin miners drop off the grid, others are reaping the benefits — like Bitfarms, a green Bitcoin mining operation based in Canada that uses hydroelectricity for mining cryptocurrency.

Not only has it sidestepped the controversy about carbon emissions, but the drop in mining difficulty as a result of fewer users being online has helped it double its productivity this year.

Within the first 12 days of July, the company has mined more than half of the volume seen in May and June. And, by the end of the month, it expects to mine more than 400 Bitcoin — worth over ₹96.8 crore or nearly $12 million as per the current market rate, where one Bitcoin is worth around ₹24.2 lakh as per CoinMarketCap.

Bitfarms’ total production for the year stands at 1515 Bitcoins right now. The company claimed that it’s powering as much as 1.5% of the entire Bitcoin network right now, and it uses 99% renewable energy to do so.

The jump in the number of Bitcoins mined by Bitfarms comes after the network experienced its largest difficulty drop in history due to the developments in China on July 3. This means that the company was able to mine more coins while also reducing the amount of energy used.

China’s loss is Bitfarms’ gain

Bitfarms is a publicly-traded company that has been listed on the Toronto Stock Exchange since 2019 and made its debut in the US market just last month.

The company claims that, as compared to other publicly traded cryptocurrency manic companies, it has mined the largest amount of Bitcoin with renewable energy.

“With the recent ban on Bitcoin mining in China, Bitfarms has nearly doubled its market share and is currently producing approximately 13 Bitcoin per day,” Emiliano Grodzki, founder and chief executive officer of Bitfarms said in a statement.

China’s crackdown on crypto isn’t about to let up anytime soon

China’s crackdown on crypto mines shows no signs of slowing down. According to reports, three more of the country’s provinces — Anhui, Henan and Gansu — joined the crackdown this week.

According to a Coindesk report, the State Grid’s headquarter in Henan and Gansu has asked for a “clean up and crackdown” on crypto mines that use electricity from the country’s national grid.

According to the Cambridge Bitcoin Electricity Consumption Index, the average monthly hash rate from these three provinces stood at almost 2% of the global hash rate in April 2021.

“Reports indicate that the ban on crypto mining in China and the exodus of mining rigs seeking new hosting may take an extended period of time to resolve. Bitfarms is well positioned to take advantage of the significantly improved economic opportunity,” said Grodzki.

For a more in-depth discussion, come on over to Business Insider Cryptosphere — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.

SEE ALSO:
WazirX, CoinDCX and CoinSwitch Kuber have been asked to add ‘standardised disclaimers’ to their ads on television
Paraguay wants to regulate crypto mining and trading, but its proposed laws are nothing like El Salvador
India's crypto bill is unlikely to be up for discussion this month — and it may be a while before we see it in Parliament