Bitfarms Q2 Earnings Report

Bitfarms, amid a hostile takeover from Riot Platforms, experienced a stock surge on Thursday following its second-quarter earnings release.

The company reported a net loss of $27 million or 7 cents loss per basic and diluted share, which was better than the 11-cent per-share loss analysts expected (according to MarketWatch estimates). This is compared to a net loss of $6 million in the prior year’s quarter.

For context, Riot experienced a net loss of $84.4 million in the second quarter, compared to a net loss of $27.4 million in the same quarter last year.

Revenue of $42 million fell 16% from the first quarter, attributed to decreased block rewards following the Bitcoin halving on April 19. Bitfarms reported an operating loss of $24 million, the same as the previous year, which included $46 million in accelerated depreciation for older miners.

Bitfarms mined 614 bitcoin at an average production cost of $30,600, up from $18,400 in the previous year, averaging 6.7 BTC daily. Their current hashrate is 11.1 EH/s, an increase from 6.5 EH/s in the previous quarter.

CEO Ben Gagnon, who assumed his role last month, stated, “During the quarter, we made significant strides to equip Bitfarms for growth and efficiency in the second half of the year and into 2025.” He noted the new site in Sharon, PA as Bitfarms’ entry into the PJM region, the most attractive energy market in the U.S. They aim to grow their presence, expecting to reach over 35 EH/s by 2025, representing 67% growth from their year-end goal of 21 EH/s.

Gagnon also emphasized a strong focus on U.S. expansion and diversification beyond Bitcoin mining.

In July, Bitfarms added 111 BTC to its treasury, totaling 1,016 BTC valued at $67 million as of July 31, based on a price of $66,100 per BTC.

The company raised $136 million in net proceeds during Q2 and $240 million through August 7 from its 2024 at-the-market equity offering program.

At publication, Bitfarms’ stock (ticker: BITF) was trading more than 20% higher, reaching $2.29 per share.