Bitfarms Revenue Drops Sharply in May — Is BITF Stock A Sell?

YEREVAN (CoinChapter.com) — Bitfarms saw a 42% drop in crypto mining revenue in May, the first full month after the Bitcoin halving in mid-April. This halving cut the Bitcoin mining subsidy from 6.25 BTC to 3.125 BTC.

In April, Bitfarms produced 263 BTC worth $18.1 million. In May, production fell to 156 Bitcoin, valued at $10.7 million. The firm called May the “first full month with post-halving economics” in a June 3 statement. The average Bitcoin earned per unit of computational power also dropped 45%, from 44 exahashes per second (EH/s) to 24 EH/s.

Unusual Weather Conditions Affect Production

Bitfarms pointed to “unusually cold temperatures” at its Rio Cuarto facility in Argentina as another reason for the production drop. The company reported it was the coldest weather in 44 years, leading to an eight-day halt in mining operations.

The cold snap in Rio Cuarto led to operational interruptions, worsening the impact of the halving. Bitfarms noted that a 4.2% decrease in network difficulty partially offset the production drop.

Yguazu Site Expansion Boosts Bitfarms’ Mining Capacity

Bitfarms is expanding its operations. The company secured an additional 100 megawatts at its Yguazu site in Paraguay through a power purchase agreement with Paraguay’s Administración Nacional de Electricidad. This agreement will double the site’s capacity to 200 megawatts, potentially adding 6 exahashes per second (EH/s) by 2025.

Bitfarms’ current installed hash rate is 9.5 EH/s, making it the fifth largest globally, behind Marathon Digital, Core Scientific, CleanSpark, and Riot Platforms, according to Hashrate Index.

The firm also has 16,200 Bitcoin miners en route, expected to increase its hash rate to 12 EH/s once installed. It operates mining facilities in the U.S. and Canada.

Bitfarms Stock Rises Despite Bitcoin Production Drop

Despite the 42% fall in Bitcoin production, Bitfarms (BITF) shares rose 2.92% on the Nasdaq on June 3, according to Google Finance. BITF is still down 15.9% in 2024 after a solid performance in 2023, where the firm’s stock increased by 588%.

The company recently rejected a $950 million acquisition proposal from Riot Platforms, focusing on independent growth and expansion.