Bitcoin Miner Bitfarms Mined 1,223 BTC but with $25 Million Net Loss in Q2 2023
Rebeca Moen Aug 08, 2023 12:30
Bitfarms mined 1,223 BTC in Q2 2023, reaching a hashrate of 5.3 EH/s. Revenue was $35M, with a net loss of $25M. The firm also secured 150 MW of hydropower.
Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a vertically integrated global bitcoin company, has released its financial results for the second quarter ended June 30, 2023.
Bitfarms successfully mined 1,223 BTC in the second quarter of 2023, bringing its total holdings to 549 BTC, an increase of 114 BTC. The corporation set a future aim of 7.0 EH/s for Q1 2024 when its hashrate as of June 30, 2023, hit 5.3 EH/s, an increase of 10% from March 31, 2023. According to reports, Q2 2023 revenue increased from the prior quarter's $30 million to $35 million. Despite the rise in sales, the company's net loss increased significantly from $2 million in Q1 2023 to $25 million, a huge loss. Compared to the prior quarter's adjusted EBITDA of $7 million, the current quarter's adjusted EBITDA was $8 million. From $12,500 in Q1 2023, the average direct cost to generate one BTC climbed to $15,700. As of June 30, 2023, Bitfarms has $549 BTC, worth an estimated $17 million, and $31 million in cash on hand. In addition, the business revealed plans to build a new 50 MW farm in Paraguay and obtained contracts for 150 MW of cheap, ecologically friendly hydropower there in July....
Bitfarms' revenue growth reflects higher hashrate and average BTC prices, partially offset by a decrease in total BTC produced. The net loss of $25 million includes $10 million in impairment charges. The company's gross mining profit and gross mining margin were $14 million and 42%, respectively, consistent with Q1 2023. General and administrative expenses were $9 million, up 10% from Q1 2023, and total cash costs of production per BTC were $21,800 in Q2 2023, up from $17,600 in Q1 2023.
Bitfarms continued to invest in infrastructure and fleet upgrades, increasing its hashrate by 10% during Q2 2023. The company also acquired contracts for hydropower in Paraguay, a market with low build-out costs and quick project timelines. The company's expansion strategy includes becoming a self-importer of miners in Argentina and purchasing new high-efficiency miners for deployment in Argentina and Canada.
Bitfarms is projecting 20% sequential growth in its hashrate in Q3 2023 and expects further growth with the commissioning of the Paso Pe farm in Q1 2024. The company's focus on sustainable, locally based energy infrastructure and ongoing investments in geographic expansion positions it for continued development across multiple jurisdictions.
Bitfarms' Q2 2023 results reflect a strategic focus on growth and efficiency, with investments in infrastructure and expansion into new markets. While the company reported a net loss for the quarter, its revenue growth and consistent gross mining margin indicate a positive trajectory. Bitfarms demonstrates a progressive stance through its dedication to sustainable energy and the setting of assertive goals for hashrate expansion. This approach resonates with current industry movements and potential market prospects.
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