Toronto-based Bitcoin mining company Bitfarms reported a total revenue of $42 million, marking a 16% decline quarter-over-quarter. This decrease is attributed to the reduction in block rewards resulting from the BTC halving event on April 19, 2024.
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 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.
According to the official press release, the company 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. Meanwhile, the total cash cost per BTC increased to $47,300 in the second quarter, compared to $27,900 in the first quarter, as a result of producing a lower quantity of BTC.
July saw a 34% increase in Bitcoin earnings for the firm, reaching 243 BTC valued at $14 million, an improvement from 189 BTC worth $11 million in June.
Bitfarms Chief Financial Officer, Jeff Lucas stated, “Our robust balance sheet and capital efficient growth strategy provides us with exceptional financial flexibility. 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.”
CEO Ben Gagnon, who took on the role last month, highlighted the company’s ongoing expansion and diversification efforts. Bitfarms’ latest addition is a site in Sharon, PA, marking Bitfarms’ initial 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, which had proposed a $950 million acquisition in April but later withdrew the offer, citing difficulties in negotiating with Bitfarms’ current board.
Bitfarms is experiencing challenges in revenue generation and cost management, partly due to the BTC halving event. However, the company remains committed to its growth and efficiency improvement plans, as well as expanding into new markets. The ongoing hostile takeover attempt adds another layer of complexity to Bitfarms’ current situation, and it will be interesting to see how the company navigates these challenges in the coming months.