TL;DR
- Bitfarms Ltd., a leading Bitcoin mining company, reported a significant drop in earnings following the recent Bitcoin halving event, earning 269 BTC in April 2024, a decrease from 286 BTC in March and a stark contrast to the 379 BTC earned in April 2023.
- Despite the challenges, Bitfarms is actively expanding its hash rate capacity and improving energy efficiency across the corporation. The company is on schedule to reach a mid-year target of 12 EH/s and 25 w/TH in Q2 2024.
- Bitfarms’ total Bitcoin reserves swelled to 830 BTC, valued at approximately $50.9 million, despite a decrease in monthly earnings. The company remains committed to overcoming obstacles and maintaining a strong position in the rapidly evolving industry.
The cryptocurrency mining industry faces a new challenge as Bitfarms Ltd., a global leader in Bitcoin mining, reports a significant drop in earnings following the recent Bitcoin halving event. The company, which is in the midst of a transformative fleet upgrade, earned 269 BTC in April 2024, a decrease from 286 BTC in March and a stark contrast to the 379 BTC earned in April 2023.
The halving event, which occurred on April 19, 2024, reduced mining rewards from 6.25 BTC to 3.125 BTC per block, leading to a 5.9% increase in network difficulty. This, coupled with turbine maintenance in Argentina that temporarily lowered capacity at Rio Cuarto from 54 MW to 21 MW, has impacted Bitfarms’ operations.
Despite these hurdles, Bitfarms is vigorously pursuing expanding its hash rate capacity, aiming at enhancing it threefold to reach 21 exahashes per second (EH/s), backed by an investment of $240 million.
The firm’s update for April production revealed a boost in energy efficiency across the corporation, achieving a 9% improvement, now operating at 31 watts per terahash (w/TH).
Additionally, Bitfarms expects a $23.7 million Value Added Tax (VAT) refund from Canada, which will provide a near-term source of cash and a long-term reduction in operating and capital costs.
Improving Bitcoin Mining Energy Efficiency: A Key Focus for Bitfarms
Bitfarms’ Chief Mining Officer, Ben Gagnon, stated that two farms in Québec were fully upgraded with Bitmain T21 miners, improving energy efficiency by 51% at those farms. The company is on schedule to reach a mid-year target of 12 EH/s and 25 w/TH in Q2 2024.
For April, Bitfarms reported earnings of 269 BTC, marking a decrease of 6% compared to the previous month and a 29% reduction from the same period last year. The company executed a sale of 245 BTC from the earned amount, adhering to its standard treasury management strategy, which resulted in proceeds amounting to $16.1 million.
Concurrently, the total Bitcoin reserves of the company swelled to 830 BTC, valued at approximately $50.9 million, with the valuation based on the Bitcoin price of $61,300 as of the end of April 2024.
The Bitcoin halving is a programmed process in the Bitcoin protocol that happens every 210,000 blocks mined, roughly every four years. While it ensures scarcity and reduces Bitcoin’s inflation rate over time, it also poses significant challenges for mining companies like Bitfarms, which must adapt quickly to remain profitable in a rapidly evolving industry.
The company’s proactive approach to upgrading its equipment and improving efficiency demonstrates a commitment to overcoming these obstacles and maintaining a strong position in the market.
