Toronto-based Bitcoin mining company Bitfarms reported 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.
Second quarter financial results
Bitfarms reported a net loss of $27 million, or $0.07 per share, which includes a non-cash expense of $1 million from 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 the first quarter of 2024, which included a non-cash gain of $9 million from revaluing warrant liabilities.
According to the official Press releaseThe company generated 614 BTC in Q2 2024 at an average direct production cost of $30,600 per BTC, up from $18,400 in Q1. Meanwhile, the total cash cost per BTC increased to $47,300 in Q2, compared to $27,900 in Q1, as a result of producing fewer BTC.
July saw a 34% increase in Bitcoin earnings for the company, reaching 243 BTC valued at $14 million, an improvement from 189 BTC valued at $11 million in June.
Commenting on the second quarter results, Bitfarms CFO Jeff Lucas said:
“Our strong balance sheet and capital-efficient growth strategy provide us with exceptional financial flexibility. Our growth and efficiency improvement plans through 2024 are fully funded with sufficient liquidity for infrastructure construction and mining equipment acquisitions necessary to enable us to achieve 21 EH/s and 21w/TH by year-end.”
CEO Ben Gagnon, who took over last month, highlighted the company’s ongoing expansion and diversification efforts. Bitfarms’ latest addition is a site in Sharon, Pennsylvania, 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 U.S.
Bitfarms remains firm on its independent path
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 negotiating with Bitfarm’s current board.
In the latest report, Bitfarms reaffirmed that its Special Committee has “unanimously determined to continue executing Bitfarms’ strategic plan as an independent public company,” while noting that the board and management are willing to consider any opportunities that may enhance shareholder value.
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