Bitfarms, a Toronto-based Bitcoin mining company, recently reported a total revenue of $42 million for the second quarter of 2024, showcasing a 16% decline from the previous quarter. This decrease is primarily attributed to the reduction in block rewards following the BTC halving event in April 2024. Additionally, Bitfarms 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. This marks a significant increase from the net loss of $6 million, or $0.02 per share, in Q1 2024.
According to the official press release, 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 a lower quantity of BTC produced. Despite these challenges, the company saw a 34% increase in Bitcoin earnings in July, reaching 243 BTC valued at $14 million.
Bitfarms’ Chief Financial Officer, Jeff Lucas, highlighted the company’s robust balance sheet and capital-efficient growth strategy, providing them with exceptional financial flexibility. The company’s growth and efficiency improvement plans for 2024 are fully funded, with sufficient liquidity for infrastructure buildout and miner procurements to achieve 21 EH/s and 21w/TH by year-end. CEO Ben Gagnon, who recently took on the role, emphasized the ongoing expansion and diversification efforts of the company.
Bitfarms recently expanded its operations into the PJM region with a site in Sharon, PA, marking its initial entry into this area. Gagnon expressed confidence in the PJM region, describing 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, who had proposed a $950 million acquisition in April but later withdrew the offer due to difficulties in negotiating with Bitfarms’ current board.
Bitfarms is navigating through a challenging period marked by revenue decline, increased production costs, and a hostile takeover attempt. However, the company remains focused on its growth and diversification efforts, aiming to overcome these obstacles and emerge stronger in the ever-evolving Bitcoin mining industry.
