Bitfarms stock rises 22% after Q2 loss came out better than expectations

Canadian Bitcoin mining company Bitfarms surged nearly 22% following the release of better-than-expected second-quarter earnings.

In its Q2 results on Aug. 8, the Bitcoin (BTC) miner reported a 7 cents per share loss, less than the 11 cents per share loss initially forecasted by Zacks Investment Research.  

In an Aug. 8 post on social media platform X, newly crowned Bitfarms CEO Ben Gagnon said the miner continues to grow and is exploring new opportunities outside of Bitcoin mining. 

“We continue to dramatically alter our operating profile via our ongoing fleet upgrades and our geographic expansion,” he said.

“We are taking a very close look at all of our MWs and evaluating several opportunities to expand beyond Bitcoin mining, including HPC/AI.”

Bitfarm’s total revenue of $42 million was down 16% from the first quarter and was lower than analyst estimates.

The miner said in its earnings report the decrease was due to smaller block rewards following the Bitcoin halving on April 19.

Halving is a programmed process in the BTC protocol that occurs after every 210,000 blocks are mined. It reduces mining rewards by 50%, with miners now receiving 3.125 BTC per mined block, down from the previous 6.25 BTC.

Bitfarms also reported operating losses of $23.6 million, which included $46 million accelerated depreciation on older miners.

Bitfarms produces $37M in Bitcoin during Q2

Through its operations, the firm mined 614 BTC during the second quarter, worth roughly $37 million at current market prices, according to CoinGecko. 

Total cash cost of production, the figure for all expenses related to the production of a single BTC, had risen to $47,300, up from $27,900 in the first quarter of 2024. 

In April, Bitfarms announced it would invest about $240 million to upgrade its mining equipment and add 88,000 more miners.

The firm reported a 34% month-on-month increase in Bitcoin earnings in July, generating 243 BTC ($14 million), compared to 189 BTC ($11 million) in June.

Its hashrate, the amount of processing and computing power, also experienced a notable bump to 11.1 EH/s, up from 6.5 EH/s. 

Gagnon said the company’s new site in Sharon, PA, will help them increase the rate even further in 2025.

“This site, in combination with our new megawatts in South America, positions Bitfarms to reach over 35 EH/s in 2025, representing 67% growth from our year-end target of 21 EH/s,” he said.

“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.”