TORONTO - Bitfarms Ltd. (NASDAQ/TSX: BITF), a prominent Bitcoin mining company, announced significant operational advancements in its latest monthly production report. The company secured an additional 100 megawatts (MW) of sustainable hydropower in Paraguay, potentially adding 6 exahash per second (EH/s) to its capacity in 2025. This move doubles the capacity at the Yguazu site to 200 MW, with deployment of the additional power expected in 2025.
In May, Bitfarms earned 156 bitcoins (BTC), a decrease from April's 269 BTC, reflecting the impact of the Bitcoin halving event and operational curtailments due to extreme cold in Argentina. Despite these challenges, the company has increased its installed hashrate to 9.5 EH/s, with 7.5 EH/s currently operational. This growth represents a 50% year-over-year (Y/Y) increase in operational hashrate as of June 1, 2024.
The company's energy efficiency improved to 27 watts per terahash (w/TH), marking a 31% improvement Y/Y and a 13% increase month-over-month (M/M). Bitfarms is on track to reach its year-end targets of 21 EH/s and 21 w/TH.
During May, Bitfarms sold 136 BTC for $8.9 million as part of its treasury management, increasing its BTC holdings to 850 BTC, valued at approximately $57.2 million at the end of May. Additionally, the firm received $17 million of a $24 million VAT refund from Quebec, enhancing its financial position and supporting its growth strategy.
The company's rapid fleet upgrade continues, with 25,600 miners received year-to-date and the installation of 23,600 miners completed. The remaining 16,200 miners are in transit, expected to contribute to achieving 12 EH/s in June.
In response to the colder temperatures in Argentina, Bitfarms curtailed operations for eight days at its Rio Cuarto facility. However, operations resumed on May 31st, and the company anticipates having the full 70 MW energized in June at its Paso Pe site in Paraguay.
The expansion and efficiency gains are part of Bitfarms' strategic growth and diversification, with the company maintaining a strong focus on sustainability by leveraging hydroelectric and other underutilized energy resources.
This report is based on a press release statement from Bitfarms Ltd. and provides an overview of the company's recent operational achievements and financial updates.
InvestingPro Insights
As Bitfarms Ltd. (NASDAQ/TSX: BITF) continues to expand its operations and enhance its energy efficiency, it's important for investors to consider the financial health and market performance of the company.
According to InvestingPro data, Bitfarms holds a market capitalization of approximately $899.91 million USD, reflecting the scale of its business in the competitive Bitcoin mining industry. Despite its ambitious growth strategy, the company's gross profit margin over the last twelve months as of Q1 2024 stands at -3.2%, indicating challenges in maintaining profitability amidst operational expansions.
InvestingPro Tips highlight that Bitfarms currently holds more cash than debt on its balance sheet, which is a positive sign for financial stability, and analysts expect sales growth in the current year. These factors could suggest a potential for resilience and recovery, even as the company faces the headwinds of weak gross profit margins and a lack of profitability over the last twelve months.
Moreover, with significant returns over the last week (10.89%) and the last year (85.12%), investors may find Bitfarms' stock price movements to be quite volatile, yet possibly rewarding for those with a high-risk tolerance.
For those interested in a deeper dive into Bitfarms' financials and performance metrics, InvestingPro offers a wealth of additional tips and real-time data. Currently, there are over 10 additional InvestingPro Tips available for Bitfarms, which can be accessed through their dedicated page at https://www.investing.com/pro/BITF. Moreover, potential subscribers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more value for those looking to make informed investment decisions.
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