Bitfarms, a Bitcoin mining company based in Toronto, recently released its Q2 2024 financial results, showing a total revenue of $42 million, which is a 16% decrease from the previous quarter. This decline is attributed to the reduction in block rewards following the BTC halving event in April 2024.
The company reported a net loss of $27 million, or $0.07 per share, for Q2, which includes a $1 million non-cash expense for revaluing warrant liabilities from financing activities in 2021 and 2023. This compares to 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.
In the second quarter of 2024, Bitfarms generated 614 BTC with an average direct production cost of $30,600 per BTC, up from $18,400 in the first quarter. However, the total cash cost per BTC increased to $47,300 in the second quarter, compared to $27,900 in the first quarter, due to producing a lower quantity of BTC.
July saw a 34% increase in Bitcoin earnings for Bitfarms, with 243 BTC valued at $14 million, an improvement from 189 BTC worth $11 million in June. Despite the challenging second quarter results, Bitfarms Chief Financial Officer, Jeff Lucas, expressed confidence in the company’s financial flexibility and growth plans for 2024.
CEO Ben Gagnon, who recently assumed the role, highlighted Bitfarms’ ongoing expansion and diversification efforts. The company’s latest venture into the PJM region with a site in Sharon, PA, is seen as a strategic move to tap into a promising energy market in the US.
Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms, which proposed a $950 million acquisition in April but later withdrew the offer due to negotiation difficulties with Bitfarms’ current board. Despite this, Bitfarms reaffirmed its commitment to remain an independent public company and stated that they are open to opportunities that could enhance shareholder value.
Overall, Bitfarms remains focused on its growth and efficiency improvement plans for 2024, with a clear vision to achieve 21 EH/s and 21w/TH by year-end. The company’s resilience and strategic decisions in the face of challenges position it well for future success in the ever-evolving cryptocurrency industry.