Bitfarms, a Toronto-based Bitcoin mining company, recently reported a total revenue of $42 million for the second quarter of 2024. This figure represents a 16% decline from the previous quarter. The decrease in revenue is largely attributed to the reduction in block rewards following the BTC halving event that took place on April 19, 2024.
Despite the decrease in revenue, Bitfarms reported a net loss of $27 million, or $0.07 per share, for the second quarter of 2024. This figure includes a $1 million non-cash expense for revaluing warrant liabilities from financing activities in 2021 and 2023. In comparison, the company had a net loss of $6 million, or $0.02 per share, in the first quarter of 2024, which included a $9 million non-cash gain from revaluing warrant liabilities.
According to the official press release, Bitfarms generated 614 BTC in the second quarter of 2024. 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, due to a lower quantity of BTC being produced.
Bitfarms’ Chief Financial Officer, Jeff Lucas, highlighted the company’s robust balance sheet and capital-efficient growth strategy. He stated that their growth and efficiency improvement plans for 2024 are fully funded, with sufficient liquidity for infrastructure buildout and miner procurements. The goal is to achieve 21 EH/s and 21w/TH by the end of the year.
CEO Ben Gagnon, who recently took on the role, emphasized Bitfarms’ ongoing expansion and diversification efforts. The company’s latest addition is a site in Sharon, PA, marking Bitfarms’ entry into the PJM region. Gagnon expressed confidence in the PJM area, describing it as the most promising energy market in the US.
Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms. Riot Platforms had proposed a $950 million acquisition in April but later withdrew the offer, citing difficulties in negotiating with Bitfarms’ current board. This attempt adds another layer of challenge for Bitfarms in an already competitive and rapidly evolving industry.
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