Bitfarms, a Canadian Bitcoin mining company, saw its stock price surge nearly 22% following the release of its better-than-expected second-quarter earnings on August 8.
The company reported a loss of 7 cents per share for Q2, beating the anticipated 11 cents per share loss forecasted by Zacks Investment Research. This positive surprise contributed to the stock’s sharp increase.
In an update on social media, new Bitfarms CEO Ben Gagnon highlighted the company’s ongoing growth and expansion efforts. He stated that Bitfarms is exploring opportunities beyond Bitcoin mining, including high-performance computing (HPC) and artificial intelligence (AI).
Bitfarms generated $42 million in revenue during Q2, down 16% from the previous quarter. The decline is attributed to smaller block rewards following the Bitcoin halving event on April 19, which cut mining rewards from 6.25 BTC to 3.125 BTC per block.
The company reported an operating loss of $23.6 million, including $46 million in accelerated depreciation on older mining equipment. Despite this, Bitfarms mined 614 BTC in Q2, valued at approximately $37 million. The cash cost of producing each Bitcoin rose to $47,300, up from $27,900 in Q1.
In July, Bitfarms saw a 34% increase in Bitcoin earnings month-on-month, mining 243 BTC worth $14 million compared to 189 BTC valued at $11 million in June. The company’s hashrate increased to 11.1 EH/s from 6.5 EH/s.
Gagnon emphasized the importance of the new site in Sharon, PA, and expansion efforts in South America. He projected Bitfarms could achieve over 35 EH/s in hashrate by 2025, representing a 67% increase from the year-end target of 21 EH/s.
Looking ahead, Bitfarms aims to continue expanding its U.S. presence and diversifying its operations beyond Bitcoin mining.
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