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Bitcoin Mining Firm Bitfarms Faces $27 Million Net Loss in Q2 2024

Summary:
Toronto-based Bitcoin mining company Bitfarms reported a total revenue of 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. Q2 Financial Result Bitfarms reported a net loss of million, or %excerpt%.07 per share, which includes a million non-cash expense for revaluing warrant liabilities from financing activities in 2021 and 2023. This compares to a net loss of million, or %excerpt%.02 per share, in Q1 2024, which included a million non-cash gain from revaluing warrant liabilities. According to the official press release, the company generated 614 BTC in the second quarter of 2024 with an average direct production cost of ,600 per BTC, up from

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Toronto-based Bitcoin mining company Bitfarms reported a 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.

Q2 Financial Result

Bitfarms reported a net loss of $27 million, or $0.07 per share, which includes a $1 million non-cash expense for 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 Q1 2024, which included a $9 million non-cash gain from revaluing warrant liabilities.

According to the official press release, the company generated 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 first quarter. Meanwhile, the total cash cost per BTC increased to $47,300 in the second quarter, compared to $27,900 in the first quarter, as a result of producing a lower quantity of BTC.

July saw a 34% increase in Bitcoin earnings for the firm, reaching 243 BTC valued at $14 million, an improvement from 189 BTC worth $11 million in June.

Weighing on the second quarter results, Bitfarms Chief Financial Officer, Jeff Lucas stated,

“Our robust balance sheet and capital efficient growth strategy provides us with exceptional financial flexibility. Our 2024 growth and efficiency improvement plans are fully funded with sufficient liquidity for the infrastructure buildout and miner procurements needed to enable us to achieve 21 EH/s and 21w/TH by year-end.”

CEO Ben Gagnon, who took on the role last month, highlighted the company’s ongoing expansion and diversification efforts. Bitfarms. The company’s latest addition is a site in Sharon, PA, 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 US.

Bitfarms Stands Firm on 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 in negotiating with Bitfarm’s current board.

In the latest report, Bitfarms reaffirmed that its Special Committee has “unanimously determined that continuing to execute Bitfarms’ strategic plan as an independent public company,” while noting that the board and management are willing to consider any opportunities that could enhance shareholder value.

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