Bitfarms: Crypto mining revenue drops 42% in May

Bitfarms, a leading bitcoin mining company, reported a 42% drop in revenue in May – the first full month after the bitcoin halving in mid-April. The company’s bitcoin production fell from 263 bitcoin (BTC) worth $18.1 million in April to 156 bitcoin worth $10.7 million in May. In a June 3 statement, Bitfarms called this the “first full month of post-halving economic conditions.”

Reduction in efficiency

Likewise, the average amount of Bitcoin Bitfarms earned per computing unit (EH/s) dropped by 45% from 44 EH/s to 24 EH/s. The halving event on April 20 reduced the Bitcoin mining subsidy from 6.25 BTC to 3.125 BTC, putting financial pressure on miners.

Bitfarms also blamed “unusually cold temperatures” at its Rio Cuarto facility in Argentina for the drop in bitcoin production. The weather – which Bitfarms said was the worst in the region in 44 years – forced the company to shut down its mining operations in Rio Cuarto for eight days.

Bitfarms: Network difficulties and mitigation measures

The company noted that the damage in Argentina was partially offset by a 4.2% decrease in network difficulty compared to April. In May, Bitfarms secured an additional 100 megawatts at its Yguazu site in Paraguay through a power purchase agreement with the Administración Nacional de Electricidad, a Paraguayan state-owned company. This change will double the site’s capacity to 200 megawatts and will allow it to add 6 exahashes per second (EH/s) after installation in 2025.

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The company stated that its installed hashrate is currently 9.5 EH/s, which is the fifth largest after Marathon Digital, Core Scientific, CleanSpark, and Riot Platforms, according to Hashrate Index data. The mining company has another 16,200 Bitcoin miners on the way, which should increase the hashrate to 12 EH/s once installed. The company also operates mining operations in the US and Canada.

Business development and share price

It should be noted that Bitfarms recently rejected a $950 million takeover offer from Riot Platforms. Despite the 42% drop in Bitcoin production, the stock price (BITF) rose 2.92% on Nasdaq on June 3, according to Google Finance. Nevertheless, BITF is down 15.9% in 2024 after the stock rose 588% in 2023.