Bitfarms Reports Q2 Financial Results Amid Bitcoin Mining Challenges
Toronto-based Bitcoin mining company Bitfarms has announced a total revenue of $42 million for the second quarter of 2024, reflecting a 16% decline compared to the previous quarter. This decrease is primarily attributed to the reduction in block rewards following the Bitcoin halving event on April 19, 2024.
Financial Performance Overview
In its latest financial report, Bitfarms disclosed a net loss of $27 million, equivalent to $0.07 per share. This figure includes a non-cash expense of $1 million related to the revaluation of warrant liabilities stemming from financing activities in 2021 and 2023. In contrast, the company reported a net loss of $6 million, or $0.02 per share, in the first quarter of 2024, which had included a non-cash gain of $9 million from the revaluation of warrant liabilities.
According to the press release, Bitfarms produced 614 BTC in Q2 2024, with an average direct production cost of $30,600 per BTC, a significant increase from $18,400 in Q1. The total cash cost per BTC also rose to $47,300 in the second quarter, compared to $27,900 in the first quarter, largely due to a reduced production volume.
In July, Bitfarms saw a 34% increase in Bitcoin earnings, producing 243 BTC valued at $14 million, up from 189 BTC worth $11 million in June.
Management Insights
Bitfarms’ Chief Financial Officer, Jeff Lucas, emphasized the company’s strong balance sheet and capital-efficient growth strategy, stating, “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 assumed the role last month, underscored the company’s ongoing expansion and diversification efforts. The latest addition to Bitfarms’ operations is a site in Sharon, Pennsylvania, marking the company’s entry into the PJM energy market. Gagnon expressed optimism about the PJM area, calling it the most promising energy market in the United States.
Bitfarms Reaffirms Independence Amid Hostile Takeover Attempt
Bitfarms is currently navigating a hostile takeover attempt by competitor Riot Platforms, which proposed a $950 million acquisition in April but ultimately withdrew the offer due to challenges in negotiations with Bitfarms’ board. In response to these events, Bitfarms reiterated that its Special Committee has “unanimously determined that continuing to execute Bitfarms’ strategic plan as an independent public company” remains the priority, while the board and management are open to exploring opportunities that could enhance shareholder value.