Bitfarms saw a significant increase of nearly 22% in its stock value on August 8, following the release of its second-quarter earnings, which came in better than anticipated. The Canadian Bitcoin mining company reported a loss of 7 cents per share, which was an improvement over the expected loss of 11 cents per share. This performance is notably better compared to the 6-cent loss reported in the same quarter of the previous year.
The company’s revenue for the second quarter was $42 million, a decline of 16% from the first quarter. This decrease was largely due to lower block rewards following the Bitcoin halving event in April. Bitfarms also reported operating losses of $23.6 million, which included $46 million in accelerated depreciation on outdated mining equipment.
In terms of production, Bitfarms mined 614 BTC during the quarter, valued around $37 million. The cost of producing each Bitcoin increased to $47,300, up from $27,900 in the previous quarter. Despite these challenges, the company’s hash rate improved to 11.1 EH/s from 6.5 EH/s, reflecting enhanced mining efficiency.
Newly appointed CEO Ben Gagnon emphasized the company’s commitment to expanding its operations beyond Bitcoin mining. Bitfarms is investing significantly in upgrading its equipment and increasing its mining capacity, with ambitions to reach over 35 EH/s by 2025. The firm is also exploring new opportunities in high-performance computing and artificial intelligence.
