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Canada-based Bitcoin mining company Bitfarms saw its shares rise by approximately 22% following the announcement of better-than-expected second-quarter earnings. On August 8, Bitfarms reported a loss of 7 cents per share, which was less than the 11 cents per share loss initially predicted by Zacks Investment Research.
Bitfarms Shares Surge
Newly appointed Bitfarms CEO Ben Gagnon stated on social media platform X on August 8 that the miner continues to grow and is exploring new opportunities beyond Bitcoin mining:
“We continue to significantly change our operational profile through ongoing fleet upgrades and geographic expansion. We are closely examining all our MWs and evaluating various opportunities beyond Bitcoin mining, including HPC/AI.”
Bitfarms’ total revenue of $42 million fell by 16% compared to the first quarter and was below analyst estimates. The miner attributed the decline in its earnings report to lower block rewards following the Bitcoin halving event on April 19.
Halving; is a scheduled event in the Bitcoin protocol that occurs after every 210,000 blocks are mined. It reduces mining rewards by 50%, and miners now receive 3.125 Bitcoin per mined block, down from the previous 6.25 Bitcoin. Bitfarms also reported an operating loss of $23.6 million, including $46 million in accelerated depreciation on older miners.
Details on the Subject
According to CoinGecko data, the company mined 614 Bitcoin in the second quarter through its operations, which is worth approximately $37 million at current market prices. The total cash cost of production, which includes all expenses related to producing a single Bitcoin, rose from $27,900 in the first quarter of 2024 to $47,300.
In April, Bitfarms announced it would invest approximately $240 million to upgrade its mining equipment and add 88,000 more miners. The company reported a 34% month-over-month increase in Bitcoin earnings in July, producing 243 Bitcoin worth $14 million compared to 189 Bitcoin worth $11 million in June.
The amount of hashrate, which is the measure of computational power, also saw a significant increase from 6.5 EH/s to 11.1 EH/s. Gagnon mentioned that the company’s new facility in Sharon will help further increase this rate in 2025:
“This facility, along with our new megawatts in South America, will enable Bitfarms to exceed 35 EH/s in 2025, representing a 67% growth from our year-end target of 21 EH/s. We will continue to implement our growth strategy, focusing on U.S. expansion and diversification beyond Bitcoin mining over the next few years.”
