Bitfarms Increases Revenue by Almost 400% in Q2

The crackdown on crypto mining in China has helped the results and outlook for the Canadian bitcoin mining firm.

Aug 16, 2021 at 9:33 p.m. UTC
Updated Sep 14, 2021 at 1:40 p.m. UTC

Canada-based bitcoin mining company Bitfarms (NASDAQ: BITF) reported Monday its sales grew 396% year over year to $36.7 million in the second quarter. It recorded an operating loss of $2.1 million and a net loss of $3.7 million for the quarter.  

  • Shares of Bitfarms were up 0.5% to $6.42 in after-hours trading on Monday following the release of its earnings. Shares are up almost 240% for the year to date as China has cracked down on crypto mining and the price of bitcoin has increased significantly. 
  • The company mined 759 bitcoin in Q2 with an average cost of approximately $9,000 per bitcoin, and held 1,293 bitcoin valued at $35,057 each, or approximately $45.3 million, as of June 30, 2021.
  • Bitfarms’ average cost of production per bitcoin to $9,000 for the quarter compared to $5,075 for the prior year quarter reflected the May 2020 halving event and expenses related to third-party hosting, offset by the benefit from operating efficiencies.
  • “The second quarter of 2021 was a pivotal one for our company,” said Emiliano Grodzki, Bitfarms’ CEO. “From the beginning of 2021 through the end of 2022, we expect to have increased our capacity eightfold and have expanded our geographic resources throughout North and South America while continuing to pursue opportunities elsewhere.”
  • Grodzki added that “further, while the price of bitcoin continues to fluctuate, the current market is favorable to our global operation with the ban on crypto mining in China and the resultant shutdown of almost one-half of the network hashrate, allowing us to increase our market share to just above 1.5% from less than 1.0% at the beginning of the year.”

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.