Bitfarms Reported a $27M Net Loss in Q2 2024, Blames BTC Halving Event

Toronto-based Bitcoin mining company Bitfarms reported a total revenue of $42 million, marking a 16% decline quarter-over-quarter.

Toronto-based Bitcoin ( BTC ) mining company Bitfarms (NASDAQ: BITF) reported a total revenue of $42 million in the second quarter of 2024, a 16% decline from the previous quarter. This decrease was primarily due to the reduction in block rewards resulting from the BTC halving event on April 19, 2024.

The company 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.

Bitfarms 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. 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.

The company’s Bitcoin earnings increased by 34% in July, reaching 243 BTC valued at $14 million, an improvement from 189 BTC worth $11 million in June.

Commenting on the second quarter results, Bitfarms Chief Financial Officer, Jeff Lucas, said:

“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 recently acquired a site in Sharon, PA, marking the company’s initial entry into the PJM region. Gagnon expressed confidence in the PJM area, describing it as the most promising energy market in the United States.

“We continue to expand and diversify our footprint in the most promising energy markets in the U.S.,” said Gagnon. “The recent addition of a site in the PJM region, known for its reliability and low-cost energy, complements our existing operations and positions us to capitalize on the growing demand for sustainable Bitcoin mining.”

Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms (NASDAQ: RIOT), which had proposed a $950 million acquisition in April. However, Riot later withdrew the offer, citing difficulties in negotiating with Bitfarm’s current board.

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

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