Bitcoin Miner Bitfarms has published its financial results for Q2 2024, revealing a mixed picture of operational progress and financial challenges.
The company reported a total revenue of $42 million, marking a 16% decrease from the previous quarter and falling short of analyst expectations. Bitfarms attributed this decline primarily to reduced block rewards following Bitcoin’s halving event on April 19.
The quarter saw Bitfarms mining 614 BTC, valued at approximately $37 million based on current market prices. However, the total cash cost per Bitcoin surged to $47,300, up from $27,900 in Q1 2024. The company also recorded operating losses of $23.6 million, which included $46 million in accelerated depreciation of older mining equipment.
Despite these financial hurdles, Bitfarms made significant strides in expanding its operational capacity. The company added 220 megawatts (MW) of capacity, including new sites in Paraguay and Pennsylvania. A notable development was securing a 100 MW agreement in Yguazu, Paraguay, bringing its total contracted power in the region to 280 MW by mid-2025. This expansion solidifies Bitfarms’ position as the largest Bitcoin miner in South America.
Ben Gagnon, the newly appointed CEO, emphasized that the company made significant strides in the quarter that positioned it to achieve its ambitious growth plans and grow in the second half of the year and into 2025. He stated that the company aims to increase its overall mining capacity to over 35 exahashes per second (EH/s) by 2025, a 67% rise from the year-end goal of 21 EH/s.
“Over the next few years, we will continue executing our growth strategy with a sharp focus on U.S. expansion and diversification beyond Bitcoin mining,” Gagnon stated.
The Bitcoin Miner also reported a per-share loss of 7 cents, outperforming Zacks Investment Research’s projected 11-cent loss.
Chief Financial Officer Jeff Lucas assured that the company’s 2024 growth and efficiency plans are fully funded, highlighting Bitfarms’ robust financial position despite the challenging quarter.
Meanwhile, competitor Riot Platforms recently reported earnings of $70 million for the same quarter, down from $76.7 million in the same period last year. The Bitcoin Miner also cited the impact of the Bitcoin halving event.
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