As the block reward miner cashed in on the expanding digital currency industry, Bitfarms Ltd. (NASDAQ: BITF) revealed second-quarter earnings that exceeded some analysts’ estimates on Monday.
In this environment, Bitfarms’ revenue increased by 398 percent to $36.7 million, compared to $29.3 million in the previous quarter. In addition, the increase in token price contributed to a $28.1 million gross mining profit.
Bitfarms also credited its improved financial performance to a 618 PH/s (89 percent) rise in the average hash rate. Bitfarms mined 759 BTC tokens in the second quarter, with an average cost of around $9,000 per token. According to a press release, CEO Emiliano Grodzki expects the company to have boosted its capacity by eightfold and expanded its geographic resources throughout North and South America.
Bitfarms reported a $23.8 million adjusted EBITDA with a 65 percent adjusted EBITDA margin. The company had an operating loss of $2.1 million and a net loss of $3.7 million for the quarter. As of June 30th, the company had 1,293 BTC tokens in its possession.
The company’s results announcement was a strong affirmation of the sector’s beneficial impact due to China’s crackdown on cryptocurrency miners. The current market is favorable to Bitfarms, according to Grodzki, because the Chinese ban on digital currency mining and the subsequent shutdown of nearly half of the BTC network hash rate allowed Bitfarms to increase its market share to just over 1.5 percent from less than 1.0 percent at the start of the year.
The Chinese ban also allowed Bitfarms to gain by acquiring miners at a lower cost than in the past and leveraging our infrastructure development and operating expertise to support our ambitious expansion ambitions, according to Grodzki.
Bitfarms completed the quarter with $36.2 million in cash and $81.6 million in total liquidity, including cash and BTC holdings. Following the announcement of the profits, Bitfarms’ stock increased.