Bitfarms cryptocurrency mining revenue fell 42% in May – a first

Bitfarms’ cryptocurrency mining revenue fell 42% in May – the first full month since the bitcoin halving took effect in mid-April.

The company reported a drop in Bitcoin production from 263 BTC ($18.1 million) in April to 156 BTC ($10.7 million) in May. In a statement dated June 3, Bitpharm described it as “the first full month with a post-halving economy.”

Similarly, the average amount of Bitcoin earned by Bitfarms per unit of computing power decreased by 45%, from 44 exahashes per second (EH/s) to 24 exahashes per second.

Bitfarms KPI in May. Source: BitFarms

The April 20 Bitcoin halving event saw Bitcoin mining support reduced from 6.25 BTC to 3.125 BTC, putting financial pressure on miners.

Bitfarms also blamed the decline in Bitcoin production on “unusually cold temperatures” at its Rio Cuarto facility in Argentina. The weather conditions – which Bitfarms says are the worst at the site in 44 years – forced the company to suspend mining operations on the Rio Cuarto for eight days.

Bitfarms noted that the damage in Argentina was partially offset by a 4.2% decrease in network difficulties compared to April.

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During the month, Bitfarms secured an additional 100 megawatts at its Yguazu site in Paraguay through a power purchase agreement with Paraguay’s National Electricity Administration, a state-owned entity.

The modification will double the site’s capacity to 200 MW with the possibility of adding 6 exahashes per second (EH/s) when commissioned in 2025.

The company said its installed hashrate currently stands at 9.5 EH/s, which would be fifth after Marathon Digital, Core Scientific, CleanSpark and Riot Platforms, according to Hashrate Index data.

Bitfarms said it still has 16,200 bitcoin miners on the way, which would bring its hash rate to 12 EH/s once installed. The company also operates mining operations in the United States and Canada.

This comes after the company recently rejected a $950 million buyout offer from Riot Platforms.

Despite a 42% drop in Bitcoin production, BitFarms (BITF) rose 2.92% on the Nasdaq on June 3, according to Google Finance.

However, BITF is still down 15.9% in 2024 after a strong 2023 that saw the company’s shares rise 588%.

Source: Google Finance

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