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Bitfarms Posts Q2 Financial Report, Records $142M Net Loss

source-logo  thecoinrise.com 16 August 2022 10:04, UTC

Global Bitcoin self-mining firm Bitfarms, has reported a $142 million net loss in its earnings for the second quarter ending June 30, 2022.

This amount represents $0.70 per basic and diluted share for the NASDAQ and Toronto Stock Exchange listed firm. In the report detailing its operations for the April to June period, Bitfarms says it mined an additional 1257 Bitcoin (BTC).

Also during this period, it sold 3,357 BTC for an aggregate of $69.3 million as it abandoned the HODLing strategy. A large part of this amount ($62 million) was used to offset a part of a bitcoin-backed loan.

The bitcoin miner had secured a $100 million BTC-backed credit facility with Galaxy Digital, crypto-focused trading, and investment firm back in December 2021.  It now has a balance of $38 million on the loan as of the end of June 2022. Bitfarms also completed a $37 million financing deal for new equipment during this period.

As of the end of the second quarter, the firm had $46 million in cash and 3,144 BTC in its holdings. This is worth approximately $76 million at the current market price of $24,100.

The company’s hash rate also surged to 3.6 exahash per second (EH/s) which represents a 33% increase from the rate at the beginning of the period and 157% from a year ago.

Although there was a significant plunge in market prices during this period, its revenue recorded a 4% jump from the first quarter of 2022 and 14% from the second quarter of 2021. Its total revenue increased to $42 million.

Bitfarms plans for the future

Going forward into the rest of the year, Geoff Morphy,  Bitfarms CEO, says the firm is focused on executing growth and maximizing its profitability.

The miner plans to increase its mining capacity to 4.2 EH/s at the end of the third quarter and 6.0 EH/s at the end of the year with the launch of its Argentinian warehouse. It currently produces 17 BTC per day as of July 31 at 3.6 EH/s.

It has also pushed the delivery and payment schedule of some equipment into 2023 at no extra cost ahead of infrastructure completion. Bitfarms is known for high performance, but its business has also been weighed down this crypto winter, as well as other top mining firms.

thecoinrise.com