Bitfarms Bitcoin Mining Company Reports $27 Million Net Loss in Q2 of 2024

Bitfarms, a Bitcoin mining company based in Toronto, recently disclosed a total revenue of $42 million for the quarter, reflecting a 16% decrease. This decline is directly linked to the reduction in block rewards following the BTC halving event on April 19, 2024.

In terms of the financial results for the second quarter, Bitfarms reported a net loss of $27 million, equivalent to $0.07 per share. This figure includes a $1 million non-cash expense for revaluing warrant liabilities from financing activities in 2021 and 2023. In comparison, the company had a net loss of $6 million, or $0.02 per share, in Q1 2024, which involved a $9 million non-cash gain from revaluing warrant liabilities.

The official press release indicates that Bitfarms produced 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 previous quarter. However, the total cash cost per BTC rose to $47,300 in Q2, compared to $27,900 in Q1, primarily due to a lower BTC production volume.

July marked a significant increase in Bitcoin earnings for Bitfarms, with a 34% rise in profits. The company generated 243 BTC valued at $14 million, showing improvement from June’s 189 BTC worth $11 million.

Regarding the financial performance, Bitfarms’ Chief Financial Officer, Jeff Lucas, emphasized the company’s strong balance sheet and capital-efficient growth strategy, providing substantial financial flexibility. He mentioned that the growth and efficiency enhancement plans for 2024 are well-funded, enabling the company to achieve its targets by year-end.

CEO Ben Gagnon, who assumed the position recently, highlighted Bitfarms’ expansion and diversification initiatives. The company’s new site in Sharon, PA, represents its initial venture into the PJM region. Gagnon expressed confidence in the PJM area, considering it the most promising energy market in the US.

Despite facing a hostile takeover attempt from competitor Riot Platforms earlier this year, Bitfarms stands firm on its independent path. The company’s Special Committee has unanimously decided to pursue its strategic plan as an independent public entity. However, the board and management remain open to exploring opportunities that could enhance shareholder value.