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As the Bitcoin price recovered in Q1 2023, the mining firm Bitfarms sold $28.5 million worth of Bitcoin (BTC) to pay its debts.
The Q1 Bitcoin rally has been a relief for Bitcoin mining companies. After the FTX collapse, mining firms struggled for profitability. Some even filed for bankruptcy.
Bitfarms Reports Gross Loss of $8.4M
According to an SEC filing, Bitfarms mined 1,297 BTC in the first quarter of 2023. But, the company sold a major chunk – 1,267 BTC – to repay equipment debts. Last year, Bitfarms had to sell 3,000 BTC to raise liquidity during the crypto winter.
Along with selling BTC, Bitfarms added 3,000 new miners to increase its hashrate from 4.5 EH/s to 4.8 EH/s. The mining company announced that it aims to hit the milestone of 6.0 EH/s by the end of September 2023.
The hash rate is the computation power for mining BTC.
Chief Executive Officer (CEO) Geoff Morphy, who was appointed in December 2022 after the founder Emiliano Grodzki resigned, said:
Focused on maintaining financial and operating discipline, we have built strength and flexibility to drive growth and accelerated our 6.0 EH/s target from the end of Q4 2023 to the end of Q3 2023.
Lastly, Bitfarms reported a revenue of $30 million, approximately up 10% from the previous’s quarter’s revenue. The stock is currently trading at $1.08, 8% higher than Friday’s closing price.
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.