Bitfarms, a Toronto-based Bitcoin mining company, recently reported a total revenue of $42 million for the second quarter of 2024. However, this marked a 16% decline quarter-over-quarter. The decrease in revenue is primarily attributed to the reduction in block rewards resulting from the BTC halving event that took place on April 19, 2024. In addition to the decline in revenue, Bitfarms also reported a net loss of $27 million, or $0.07 per share. This significant loss includes a $1 million non-cash expense for revaluing warrant liabilities from previous financing activities in 2021 and 2023.
According to the official press release, Bitfarms generated 614 BTC in the second quarter of 2024. However, the average direct production cost per BTC increased to $30,600, up from $18,400 in the first quarter. The total cash cost per BTC also rose to $47,300 in the second quarter, compared to $27,900 in the first quarter. This increase in production costs was a result of producing a lower quantity of BTC during the quarter. Despite the decline in revenue and increase in production costs, July saw a 34% increase in Bitcoin earnings for Bitfarms, reaching 243 BTC valued at $14 million.
Bitfarms’ Chief Financial Officer, Jeff Lucas, emphasized the company’s robust balance sheet and capital-efficient growth strategy. He stated, “Our 2024 growth and efficiency improvement plans are fully funded with sufficient liquidity for the infrastructure buildout and miner procurements needed to enable us to achieve 21 EH/s and 21w/TH by year-end.” This demonstrates Bitfarms’ commitment to achieving its growth targets despite the challenges faced in the second quarter of 2024.
Despite the decline in revenue and ongoing challenges, Bitfarms’ CEO Ben Gagnon highlighted the company’s expansion and diversification efforts. The company recently acquired a site in Sharon, PA, marking its entry into the PJM region. Gagnon expressed confidence in the PJM area, describing it as the most promising energy market in the US. However, Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms. The proposed $950 million acquisition was later withdrawn due to difficulties in negotiations with Bitfarms’ current board.
Bitfarms’ second-quarter results reflect the impact of the BTC halving event and the challenges faced in the mining industry. Despite the decline in revenue and net loss, the company remains committed to its growth and efficiency improvement plans. With a focus on expansion and diversification, Bitfarms aims to overcome the hurdles and emerge stronger in the competitive Bitcoin mining market.
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