Bitfarms Experiences Lowest Earnings in Two Years; Implements Major Equipment Upgrade
Summary:
Bitfarms reports the lowest monthly earnings in over two years, with a result of 269 BTC in April 2024, attributed to the effect of Bitcoin's fourth halving. The mining company is implementing a $240 million upgrade to their Bitcoin mining equipment to maintain profitability. The enhanced setup will triple Bitfarms' hash rate capacity to 21 EH/s, and their April production update shows improved energy efficiency. Apart from their monthly earnings, they expect a $23.7 million VAT refund from the Canadian government. The company is also dealing with increased network difficulty and maintenance issues in Argentina, impacting its mining capacity. In the first quarter of 2024, Bitfarms' earnings were 357 BTC, 300 BTC, and 286 BTC, respectively, and they also increased their Bitcoin holdings in April.
Bitfarms, a cryptocurrency mining company, has recorded its lowest monthly earnings in over two years due to the fourth Bitcoin (BTC) halving. The mining operation amassed 269 BTC through mining rewards and transaction fees in April 2024. Simultaneously, Bitfarms is undertaking a significant $240 million that aims at enhancing its Bitcoin mining equipment, a move designed to maintain profitability in the face of diminished rewards.
The upgrade includes the purchase of 88,000 high-performance Bitcoin miners. Once the upgrade is fully implemented, Bitfarms expects to boost its current hash rate capacity threefold to 21 exahashes per second (EH/s). In its latest update, the company reported a 9% improvement in its corporate energy efficiency, attaining 31 watts per terahash (w/TH).
In addition to its monthly earnings of 269 BTC (amounting to approximately $15.5 million), Bitfarms is anticipating a Value Added Tax (VAT) refund of $23.7 million from the Canadian government. Updating on the progress of the upgrade, Ben Gagnon, Bitfarms' Chief Mining Officer, indicated that they fully modernized two farms in Quebec (Canada) in April, improving energy efficiency by 51% at these sites and 9% at the company level.
The latest Bitcoin halving resulted in a 5.9% surge in network difficulty compared to the previous month, further influencing miners' earnings across the board. Bitfarms also experienced a temporary reduction in its mining capacity due to ongoing turbine maintenance in Argentina.
The company's earning for April were 6% lower than the previous month and down by 29% when compared to the same period the previous year. Factoring in that Bitfarms was mining 9.0 BTC per day, their daily revenue stood at approximately $551,700, based on BTC costing $61,300 on April 30, 2024.
In the first quarter of 2024, Bitfarms' monthly earnings were 357 BTC, 300 BTC, and 286 BTC respectively. Moreover, Bitfarms added to its Bitcoin reserves in April, moving from 806 BTC to 830 BTC.
Published At
5/2/2024 11:22:04 AM
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