Iris Coleman
November 14, 2024 07:15
Bitfarms Ltd. reported a 30% year-over-year increase in revenue for the third quarter of 2024, highlighting strategic expansion and operational improvements despite industry challenges.
Bitfarms Ltd. (Nasdaq/TSX: BITF), a global leader in Bitcoin data center operations, announced its third quarter 2024 financial results, demonstrating significant revenue growth and strategic advancements. The company reported revenue of $45 million, up 8% quarter-over-quarter and 30% year-over-year, according to GlobeNewswire.
Financial Performance and Operating Highlights
Despite facing industry headwinds, including record-low hash prices and increasing network difficulty, Bitfarms has maintained profitability in its mining operations. The company achieved a gross mining margin of 38% and a net loss of $37 million, due in part to accelerated depreciation of older mining equipment. The average cost of producing Bitcoin is $36,000 per BTC, up from $30,600 in the previous quarter.
Strategic expansion and fleet upgrades
In an important strategic move, Bitfarms acquired Stronghold Digital Mining, Inc. announced the acquisition. The acquisition is expected to boost Bitfarms’ energy portfolio to more than 950 MW by the end of 2025, with potential expansion capacity of up to 1.6 GW. This change will significantly increase Bitfarms’ operating footprint in the United States, which will account for approximately 66% of the company’s total portfolio.
The company also reported deploying 5,400 additional miners in the quarter, hitting its efficiency goal of 21 watts per terahash (TH) ahead of schedule. This upgrade is expected to reduce operating costs and improve gross margin.
Strengthening leadership and governance
Bitfarms has taken steps to strengthen its leadership and corporate governance. The company appointed Ben Gagnon as CEO and announced several new executive appointments to enhance operational scalability and accountability. Additionally, Bitfarms plans to expand its board of directors from five to six members with the nomination of Andrew J. Chang.
Future outlook and HPC/AI initiatives
Looking ahead, Bitfarms is exploring opportunities beyond Bitcoin mining. The company has identified two U.S. sites for pilot high-performance computing (HPC) and artificial intelligence (AI) projects. These initiatives are part of Bitfarms’ long-term strategy to diversify its operations and maximize the value of its power assets.
Despite the challenges facing Q3 2024, Bitfarms remains focused on its innovative growth strategy. With a strong project pipeline and strategic emphasis on U.S. expansion, the company is well-positioned to capitalize on future opportunities within the cryptocurrency sector.
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