Bitfarms, a Toronto-based Bitcoin mining company, recently reported a total revenue of $42 million for the quarter, marking a 16% decline. This decrease is primarily attributed to the reduction in block rewards following the BTC halving event in April 2024. The company also reported a net loss of $27 million, or $0.07 per share, which includes a $1 million non-cash expense for revaluing warrant liabilities from previous financing activities.
Bitfarms generated 614 BTC in the second quarter of 2024 with an average direct production cost of $30,600 per BTC, a significant increase from $18,400 in the first quarter. Additionally, the total cash cost per BTC rose to $47,300 in the second quarter, compared to $27,900 in the previous quarter, mainly due to producing a lower quantity of BTC.
Despite the challenges faced in the second quarter, Bitfarms saw a 34% increase in Bitcoin earnings in July, reaching 243 BTC valued at $14 million. The company’s Chief Financial Officer, Jeff Lucas, highlighted the robust balance sheet and capital efficient growth strategy, which provides exceptional financial flexibility for the company’s future endeavors. Bitfarms aims to achieve 21 EH/s and 21w/TH by year-end through infrastructure buildout and miner procurements.
CEO Ben Gagnon, who recently assumed the role, emphasized Bitfarms’ ongoing expansion and diversification efforts. The company’s latest addition is a site in Sharon, PA, marking its initial entry into the PJM region. Gagnon expressed confidence in the PJM area, referring to it as the most promising energy market in the US. Despite these positive developments, Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms, which had proposed a $950 million acquisition in April but later withdrew the offer due to difficulties in negotiations with Bitfarms’ current board.
Bitfarms’ financial performance in the second quarter of 2024 reflects both challenges and opportunities for the company. As it navigates through the changing landscape of the Bitcoin mining industry, Bitfarms continues to focus on growth, efficiency improvements, and market expansion to maintain its competitive edge in the market.