Bitfarms Achieves $50 M in Q1 2024 Revenue, Slightly Misses Expectations
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Bitfarms Achieves $50 M in Q1 2024 Revenue, Slightly Misses Expectations

Bitfarms Ltd. reported a revenue of $50 million for the first quarter of 2024.
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Bitfarms Ltd. (NASDAQ/TSX: BITF), a global Bitcoin (BTC) vertically integrated company, reported its financial results for the first quarter ended March 31, 2024.

The company achieved a revenue of $50 million, which marks a 9% increase quarter-over-quarter (Q/Q) and a substantial 67% rise year-over-year (Y/Y). This growth underscores Bitfarms’ strategic execution in expanding its operations and upgrading its fleet. The company also reported a gross mining margin of 59%, an improvement from 52% in Q4 2023 and 41% in Q1 2023. This significant margin expansion highlights the company’s enhanced operational efficiency and cost management.

In March, Bitfarms secured an additional 24,000 miners, bringing the total delivery for 2024 to 88,000. This acquisition is pivotal for the company’s growth trajectory as it aims to boost its current hashrate from 7.0 EH/s, up from 6.5 EH/s at the end of the previous year.

The increase in hashrate is critical to the company’s ability to mine more Bitcoin and generate higher revenues. The company is on track to achieve its ambitious 2024 guidance of 21 EH/s and 21 w/TH, representing a 223% hashrate increase and a 40% efficiency improvement.

Bitfarms Misses EPS and Revenue Expectations Slightly in Q1

When comparing the current performance against expectations, Bitfarms’ revenue of $50 million fell slightly short of the expected $50.82 million.

However, the company’s earnings per share of -$0.02 (EPS) were slightly worse than anticipated. The market had expected an EPS of -$0.0175.

Despite the slight miss expectations, the overall financial health and operational performance of Bitfarms remain strong. The company’s ability to secure additional miners and increase its hashrate positions it well for future growth. The substantial year-over-year revenue growth and improved margins indicate that Bitfarms is effectively navigating the challenges of the Bitcoin mining industry and capitalizing on expansion opportunities.

Guidance

Looking forward, Bitfarms provided guidance that aligns with its strategic goals for 2024. The company aims to achieve a hashrate of 21 EH/s and an efficiency of 21 w/TH by the end of the year.

This guidance represents a significant increase in operational capacity and efficiency, which is expected to drive future revenue growth and profitability. The company’s commitment to these targets reflects its confidence in its expansion plans and the anticipated benefits of its fleet upgrades.

To support this growth, Bitfarms has been proactive in securing the necessary infrastructure and equipment. The addition of 24,000 miners in March is a testament to the company’s strategic planning and execution. As Bitfarms continues to expand its mining capabilities, it is well-positioned to capitalize on the increasing demand for Bitcoin and the opportunities within the cryptocurrency market.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.