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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2026 results show the pressure has increased
By the second quarter of 2026, Bitfarms’ financial results showed that the company was no longer simply dealing with tighter mining margins.
Q2 revenue fell 50% year over year to $30.4 million, while cost of revenue jumped 81% to $117.2 million, resulting in a substantial gross loss. For the first six months of 2026, revenue fell 38% to $67.4 million, while cost of revenue increased 61% to $180.5 million.
Bitcoin production also dropped sharply. Bitfarms produced 354 BTC in Q2 2026, down 36% from 556 BTC a year earlier. For the first half of the year, production fell 29% to 742 BTC. The company attributed the decline partly to higher network difficulty and the shutdown of its Washington mining operations as it prepared the site for HPC development.
Bitfarms is now moving to AI infrastructure
Rather than continuing to depend entirely on Bitcoin mining economics, Bitfarms has been converting its power infrastructure into data centers designed for HPC and AI workloads.
The company has sold or discontinued some mining operations as part of the transition. Its Paso Pe, Paraguay facility was sold in April 2026, while its Rio Cuarto, Argentina operation had already been abandoned after its energy supply was halted in 2025.
The Washington site was also taken offline for construction of an HPC data center, reducing Bitcoin production in the short term but supporting the company’s longer-term diversification strategy.
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