Bitcoin mining company Bitfarms faces a net loss of $27 million in the second quarter of 2024

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

This decrease is attributed to the reduction in block rewards resulting from the BTC halving event on April 19, 2024.

Financial result Q2

Bitfarms reported a net loss of $27 million, or $0.07 per share, which includes a non-cash charge of $1 million to revalue collateral liabilities from financing activities in 2021 and 2023 .This compares to a net loss of $6 million, or $0.02 per share, in the first quarter of 2024, which included a non-cash gain on the revaluation of warrant liabilities.

According to the official press release, the company generated 614 BTC in the second quarter of 2024 at 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 smaller amount of BTC.

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

Weighing in on Q2 results, Bitfarms CFO Jeff Lucas stated:

“Our strong balance sheet and efficient capital growth strategy provide us with exceptional financial flexibility. Our growth and efficiency improvement plans for 2024 are fully funded with sufficient liquidity for infrastructure construction and mining acquisitions needed to enable us to achieve 21 EH/si 21w/TH by the end of the year.”

CEO Ben Gagnon, who took over last month, highlighted the company’s ongoing expansion and diversification efforts. Bitfarms. The company’s latest addition is a location 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 remains firmly on the independent path

Bitfarms is currently facing a hostile takeover attempt from competitor Riot Platforms, which had proposed a $950 million takeover in April but later withdrew the offer, citing difficulties in negotiating with the current board from Bitfarm.

In the latest report, Bitfarms reaffirmed that its Special Committee has “unanimously determined that Bitfarms’ strategic plan continues to be executed as an independent public company,” while noting that the board and management are willing to consider any opportunity that can increase shareholder value.

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