Bitfarms Reports 34% Earnings Rise Due to Fleet and Hashrate Boost
The Bitcoin mining firm Bitfarms reported a 34% rise in earnings month over month (MoM) due to fleet growth and improvements that raised its mining hash rate.
The Bitcoin mining company claims that its activities produced 253 BTC throughout July, or around $16.2 million at the current exchange rate. The company’s monthly earnings from Bitcoin mining increased by 34% compared to its June earnings of 189 BTC ($12.1 million).
Bitfarms credited its fleet expansion and modernization initiatives for higher revenue. On July 31, the business reported 11.1 exahashes per second (EH/s) in operation, demonstrating a 7% MoM growth and a 109% YoY rise.
Bitfarms said their increased treasury of the leading digital currency resulted from enhanced Bitcoin output.
As part of its routine Treasury management, the corporation sold 142 of the 253 Bitcoin produced in July for a total of $8.6 million. By adding the remaining 111 BTC to the Treasury, its total holdings as of July 31 were 1,016 BTC, or around $67.2 million.
According to CFO Jeff Lucas of Bitfarms, the company’s objective of reaching a mining capacity of 21 EH/s and 21 w/TH by year-end is supported by its ongoing expansion. He declared:
“Being fully funded reduces our near-term capex requirements and allows us to apply a greater amount of excess cash flow from operations to building our HODL.”
Earnings jumped by 62% after Bitcoin halved.
Following halving Bitcoin’s miner payouts, Bitfarms declared that it would treble its hashrate. The firm said it will add 88,000 more miners and modernize its mining equipment for around $240 million.
Bitfarms said that its earnings were 6% less than the prior month and down 29% year over year following the April Bitcoin halving. Despite this, the Bitcoin mining company’s prospects are beginning to improve.
Bitfarms CEO Ben Gagnon said:
“Since the halving event in April, the amount of Bitcoin mined per month has increased 62%. This speaks volumes about our operational expertise and improved efficiency, and I am confident that we are well-positioned to accelerate our growth further and drive value for shareholders.”
The CEO said that its largest site, in Paso Pe, Paraguay, is fully operational, and construction is moving along quickly at Yguazu. According to Gagnon, four warehouses are being built on the property.
Challenges encountered in July
Notwithstanding the advancements, Bitfarms had to contend with an 8.4% rise in mining difficulty last month and challenges arising from Riot Platforms’ aggressive takeover effort.
According to Gagnon, the underperformance of over 3000 T21 Bitmain miners—which “experienced overheating issues even at lower temperatures”—is the reason the firm’s hash rate is still below the 12 EH/s objective.
He continued, saying:
“Bitmain is rapidly replacing these machines at their expense. The new miners are expected to arrive and be installed on-site in three weeks. We have worked closely with Bitmain to resolve these manufacturing issues and prevent a recurrence in future batches, including August deliveries.”
The post Bitfarms Reports 34% Earnings Rise Due to Fleet and Hashrate Boost appeared first on Coinfomania.
