Bitfarms announced its Q1 2025 financial results, reporting revenue of $67 million, a 33% increase compared to last year’s quarter. However, despite this growth, the company’s gross mining margin dropped sharply to 43%, down from 63% in Q1 2024, reflecting a 20-point decline driven by rising production costs.
The total cash cost to mine one Bitcoin surged to $72,300, up from $27,900 a year earlier. Direct production costs increased significantly, rising to $47,800 from $18,400. This sharp increase highlights the growing margin pressure as mining expenses escalate following the April 2024 Bitcoin halving.
On the operational side, Bitfarms reported a hashrate of 19.5 EH/s as of March 31, 2025, marking a substantial rise from 6.5 EH/s a year earlier. Mining efficiency also improved, dropping to 19 watts per terahash, a 44% gain compared to 34 watts per terahash in Q1 2024. Additionally, operating capacity nearly doubled to 461 megawatts from 240 megawatts last year. Nevertheless, these efficiency gains were not enough to offset the broader increase in production costs.
This declining margin trend has become widespread among Bitcoin miners since the April 2024 halving. For instance, Hut 8 Corp. reported a revenue decline exceeding 50% in Q1 2025 and posted a significant loss. CEO Asher Genoot attributed these results to the full impact of the halving, which is now affecting the sector.
In a related development, Bitfarms signed a binding Letter of Intent (LOI) to sell its 200 MW Bitcoin mining site in Yguazu, Paraguay, to HIVE Digital Technologies Ltd. The deal is valued at $85 million and is expected to close in the first quarter of 2025. Under the terms, Bitfarms will receive $25 million at closing, $31 million over six months, and $19 million as reimbursement for power deposits made to Paraguay’s electricity provider, ANDE. Meanwhile, HIVE will also assume $10 million in remaining capital obligations.
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