Yahya 
Following August 8’s release of better-than-expected second-quarter profits, Canadian Bitcoin mining startup Bitfarms witnessed a stock spike over 22%. The miner exceeded the 11 cents per share loss projection made by Zacks by reporting a loss of 7 cents per share.
Bitfarms’s new CEO, Ben Gagnon, underlined in an August 8 post on social networking platform X the company’s continuous expansion and search of prospects outside of Bitcoin mining. “We continue to dramatically change our operating profile via our ongoing fleet upgrades and our geographic expansion,” he added. “We are also considering expanding into high-performance computing (HPC) and artificial intelligence.”
Revenue and Operational Challenges Amid Expansion
Bitfarms’s overall income of $42 million dropped 16% from the previous quarter and fell short of expert projections even with the strong profits. Following the Bitcoin halved on April 19, the firm blamed lesser block rewards on the income drop. With miners now obtaining 3.125 BTC each mined block, down from the previous 6.25 BTC, this event cut mining payouts by 50%.
The business also revealed running losses of $23.6 million, including $46 million in accelerated depreciation on outdated mining equipment. Bitfarms extracted 614 BTC in the second quarter, worth around $37 million at current market values. But from $27,900 in the first quarter, the whole cash cost of manufacturing climbed sharply to $47,300 per BTC.
Strategic Growth and Future Outlook
Investing over $240 million to improve its mining capacity and add 88,000 additional miners, Bitfarms has been aggressively modernizing its operations. Comparatively to 189 BTC ($11 million) in June, the business stated in July a 34% month-on- month growth in Bitcoin profits, producing 243 BTC ($14 million).
From 6.5 EH/s, the company’s hashrate also experienced a notable rise to 11.1 EH/s. Gagnon pointed out that the new Sharon, PA Bitfarms location will assist to increase the hashrate in 2025 even further. “This site, in combination with our new megawatts in South America, positions Bitfarms to reach over 35 EH/s in 2025, representing 67% growth from our year-end target of 21 EH/s,” he said.
Looking forward, Gagnon underlined that Bitfarms would keep implementing its development plan with an eye on U.S. expansion and diversification outside of Bitcoin mining, therefore enabling ongoing success in the next years.
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