Bitfarms, a Canadian Bitcoin mining company, saw its stock surge nearly 22% on August 8 after reporting better-than-expected results for the second quarter.
Q2 Earnings Overview
Bitfarms reported a loss of $0.07 per share, significantly better than the $0.11 per share loss forecasted by Zacks Investment Research. This positive news fueled investor confidence, leading to a strong trading session.
Newly appointed CEO Ben Gagnon highlighted the company’s growth trajectory in an August 8 post on social media platform X. He emphasized that Bitfarms is actively exploring opportunities beyond Bitcoin mining, including high-performance computing (HPC) and artificial intelligence (AI).
“We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion,” Gagnon noted. “We are taking a very close look at all of our megawatts and evaluating several opportunities to expand beyond Bitcoin mining, including HPC/AI.”
Revenue and Production Challenges
Despite the positive earnings surprise, Bitfarms’ total revenue for Q2 was $42 million, down 16% from the first quarter and below analysts’ expectations. The company attributed the revenue decline to the reduced block rewards following Bitcoin’s halving event on April 19, which cut mining rewards from 6.25 BTC to 3.125 BTC per mined block.
The miner also reported operating losses of $23.6 million, which included $46 million in accelerated depreciation for older mining equipment.
Also Read: Bitfarms Anti-Takeover Strategy Halted by Ontario Tribunal
Production and Future Expansion Plans
During Q2, Bitfarms mined 614 BTC, generating approximately $37 million at current market prices. However, the total cash cost of production rose to $47,300 per Bitcoin, up from $27,900 in the first quarter of 2024.
In April, Bitfarms announced a $240 million investment to upgrade its mining fleet and add 88,000 more miners. This investment is part of the company’s broader strategy to increase its computing power, known as hashrate. In July, Bitfarms reported a 34% month-over-month increase in Bitcoin production, with a total of 243 BTC mined, valued at $14 million.
The company’s hashrate also saw a significant boost, reaching 11.1 EH/s, up from 6.5 EH/s. Gagnon mentioned that the new mining site in Sharon, Pennsylvania, will further increase this rate, positioning Bitfarms to reach over 35 EH/s by 2025—a 67% increase from the year-end target of 21 EH/s.
