Bitfarms Cuts Business Development Plans After Falling Earnings in Q1 2022

Canadian mining company Bitfarms reported a drop in net profit to $5 million in the first quarter of 2022. In this regard, the company’s management decided to reduce plans for business development.

According to Bitfarms financial reports, the company’s net profit for the first quarter of 2022 decreased up to $5 million. This is 50% less than the profit for the fourth quarter of last year. Therefore, Bitfarms management decided to reduce the scale of business development until the end of the year. Total revenue decreased by 33% compared to the results of the previous quarter and amounted to $40 million, while mining margins decreased from 84% to 76%.

As Bitfarms President and COO Jeff Murphy noted, the market is currently in a difficult situation with the supply of mining equipment, so the development of the company will be slower than planned. However, he emphasized that Bitfarm remains profitable “despite the price drop of bitcoin.”

It was originally planned that the total hashrate of Bitfarms equipment would reach 7.2 EH/s by the end of the year. Now we are talking about reaching 6.0 Eh/s. At the moment, the indicator is 3.4 ECH / s – about 1.5% of the total hashrate of the network of the first cryptocurrency. As part of the business development, the equipment will be installed at a new mining farm in Argentina.

Now the company operates nine mining farms, while at the beginning of the year there were six. The current capacity of the equipment is 137 MW, but by the end of the year it is planned to commission another 92 MW. As of March 31, Bitfarms wallets held 5,244 BTC, of ​​which 961 BTC were mined in Q1. At the beginning of the year, the company announced the purchase of 1,000 BTC for $43.2 million.