Bitfarms, a Toronto-based Bitcoin mining company, reported a total revenue of $42 million in the second quarter of 2024. However, this marked a 16% decline quarter-over-quarter. The reduction in block rewards resulting from the BTC halving event on April 19, 2024, is seen as the primary reason for this decrease.
Increased Net Losses
The company reported a net loss of $27 million, or $0.07 per share, in Q2 2024. This figure includes a $1 million non-cash expense for revaluing warrant liabilities from financing activities in 2021 and 2023. In comparison, Bitfarms had a net loss of $6 million, or $0.02 per share, in Q1 2024, which included a $9 million non-cash gain from revaluing warrant liabilities.
Rising Production Costs
Bitfarms generated 614 BTC in the second quarter of 2024 with an average direct production cost of $30,600 per BTC, up from $18,400 in the first quarter. The total cash cost per BTC also increased to $47,300 in the second quarter, compared to $27,900 in the first quarter, due to the production of a lower quantity of BTC.
Despite the challenges faced in the second quarter, Bitfarms saw a 34% increase in Bitcoin earnings in July. This increase brought the firm’s total Bitcoin earnings to 243 BTC valued at $14 million, showing improvement from 189 BTC worth $11 million in June.
Expansion and Acquisition Attempts
CEO Ben Gagnon, who recently took on the role, emphasized the company’s ongoing expansion and diversification efforts. Bitfarms’ latest addition is a site in Sharon, PA, marking its entry into the PJM region. The company 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.
Despite the financial challenges faced in the second quarter, Bitfarms’ Chief Financial Officer, Jeff Lucas, remains optimistic. He stated, “Our robust balance sheet and capital efficient growth strategy provide us with exceptional financial flexibility.” The company’s 2024 growth and efficiency improvement plans are fully funded, with sufficient liquidity for infrastructure buildout and miner procurements to achieve 21 EH/s and 21w/TH by year-end.
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