Despite recording a 16% dip in Q1 to Q2 revenue, Canadian Bitfarms’ stocks rose by 22% following the publication of the company’s Q2 financial report on August 8. While Zacks Investment Research had projected a $0.11 per share loss, Bitfarms’ Q2 report showed only a $0.07 loss per share, revealing a 33.36% positive surprise income.
According to Bitfarms, the expansion of its geographically diversified portfolio added 220W capacity in Pennsylvania and Paraguay as it energized its largest site in Pas Pe, Paraguay. The Bitcoin mining company announced that it would invest $240 million in the acquisition of 88,000 additional mining machines and upgrades to its mining equipment.
Bitfarm weathers revenue drop and controls losses
#Bitfarms Q2 2024 Results
See Results Presentation Here: https://t.co/u6z38IpeZW#Bitcoin #BitcoinMining $BITF pic.twitter.com/h5CZNjonYw
— Bitfarms (@Bitfarms_io) August 8, 2024
According to Bitfarms’ Q2 financial report, the Bitcoin miner’s total revenue of $42 million represented a 16% drop from Q1 and a 17% year-on-year increase. The financial report showed that the company’s gross mining margin was 51% compared to 48% around the same time in 2023 and 64% in Q1 2024.
The report also revealed a drop in gross mining profit from $31 million in Q1 to $21 million in Q2 and a 6% drop in quarter-on-quarter general and administrative expenses.
Despite a YTD (year-to-date) drop in earned Bitcoin from 2,898 in 2023 to 1,810 in 2024, Bitfarms reported a 34% month-on-month Bitcoin earning increase between June ($11M) and July ($14M) 2024.
According to the Q2 financial report, Bitfarms defied Zacks Investment Research’s predictions and registered a $0.04 lower loss per share and a 33.36% positive earnings surprise.
Bitfarms CEO presents plans to boost operations
According to Bitfarms CEO Ben Gagnon, the Company was actively aiming to increase its Bitcoin mining capacity by improving its operations.
“Over the next few years, we will continue executing our growth strategy with a sharp focus on U.S. expansion and diversification beyond Bitcoin mining.”
The Bitcoin miner’s Q2 operational data confirmed that the current hashrate of 11.1 EH/S was an increase from 6.5 EH/s in Q1 2024, while the 25w/TH efficiency reflected a 26% improvement from Q1 2024. Gagnon affirmed that the company’s new site in Sharon, PA, would help achieve the 35 EH/s projected for 2025, representing a 67% growth from the year-end 21 EH/s target.
According to Gagnon, the company was committed to altering its operating profile through geographic expansions and fleet upgrades.
Gagnon asserted that Bitfarms had made significant strides to position itself for accelerated growth and efficiency gains in the second half of 2024 going into 2025. Bitfarms’ chief financial officer, Jeff Lucas, also stated that the company’s robust balance sheet and capital-efficient growth strategy provided financial flexibility.
