Bitfarms, a cryptocurrency mining company, experienced a significant decline in revenue in May following the Bitcoin halving in April. The halving reduced the Bitcoin mining subsidy, resulting in a 42% drop in Bitfarms’ crypto mining revenue. In April, the company produced 263 BTC worth $18.1 million, but in May, production fell to 156 Bitcoin valued at $10.7 million. This decline in revenue was attributed to the “first full month with post-halving economics.” Additionally, the average Bitcoin earned per unit of computational power decreased by 45% from 44 exahashes per second (EH/s) to 24 EH/s.
Bitfarms also faced challenges due to unusual weather conditions at its Rio Cuarto facility in Argentina. The company experienced unusually cold temperatures, the coldest in 44 years, which led to an eight-day halt in mining operations. This further impacted production, exacerbating the effects of the halving. However, Bitfarms noted that a 4.2% decrease in network difficulty partially offset the decline in production.
To expand its operations, Bitfarms secured an additional 100 megawatts at its Yguazu site in Paraguay. Through a power purchase agreement with Paraguay’s Administración Nacional de Electricidad, the company will double the site’s capacity to 200 megawatts. This expansion could potentially add 6 exahashes per second (EH/s) by 2025.
Currently, Bitfarms has a hash rate of 9.5 EH/s, making it the fifth largest globally. With the addition of 16,200 Bitcoin miners, the company expects its hash rate to increase to 12 EH/s once installed. Bitfarms operates mining facilities in the U.S. and Canada.
Despite the decline in Bitcoin production, Bitfarms’ shares saw a 2.92% increase on the Nasdaq on June 3. However, the stock is still down 15.9% in 2024, following a strong performance in 2023 where it increased by 588%. The company recently rejected a $950 million acquisition proposal from Riot Platforms as it focuses on independent growth and expansion.
