JAKARTA - In the midst of increasingly heavy market challenges, the Bitcoin mining company from Toronto, Bitfarms, reported a net loss of 27 million US Dollars (around Rp429 billion) in the second quarter of 2024.
This figure is equivalent to a loss of 7 cents per share, showing a significant increase compared to net losses of 6 million US Dollars (approximately IDR 95 billion) or 2 cents per share in the previous quarter. This decline occurred after the Bitcoin halving event on April 19, 2024, which led to a decrease in block rewards for miners.
Bitfarms revenue also decreased by 16% on a quarterly basis, to 42 million US Dollars (approximately IDR 670 billion). One of the main factors affecting this revenue decline was an increase in production costs per Bitcoin (BTC), which reached an average of 30,600 US Dollars (approximately IDR 488 million) per BTC in the second quarter, a significant increase from 18,400 US Dollars (approximately IDR 293 million) per BTC in the first quarter.
In addition, total cash costs per BTC also increased to 47,300 US Dollars (approximately Rp754 million) from 27,900 US Dollars (approximately Rp445 million) in the previous period, as a result of a decrease in the number of successfully produced BTC.
Despite the financial pressure, Bitfarms managed to record a 34% increase in Bitcoin revenue in July, generating 243 BTC worth 14 million US Dollars (approximately IDR 223 billion), an increase from 189 BTC worth 11 million US Dollars (approximately IDR 175 billion) in June.
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Jeff Lucas, Chief Financial Officer of Bitfarms, stressed that the company still has good financial flexibility thanks to an efficient growth strategy and a strong balance sheet. Quoted from Crypto Potato, Lucas stated that the planned growth and efficiency improvement of Bitfarms for 2024 has been fully funded, with sufficient liquidity to support infrastructure development and the procurement of the mining equipment needed to achieve the company's targets.
Bitfarms' new CEO, Ben Gagnon, who took office last month, also highlighted the company's expansion and diversification efforts. One of the latest steps is the opening of a new site in Sharon, Pennsylvania, marking the entry of Bitfarms into the PJM region, the energy market that Gagnon considers the most promising in the US.
Amid financial pressure, Bitfarms also faces another challenge in the form of an unfriendly takeover attempt from Riot Platforms, their competitor, who made an acquisition offer worth US$950 million (around Rp15 trillion) last April. However, Riot then withdrew his offer due to difficulties in negotiating with the board of directors of Bitfarms.
In its latest report, Bitfarms affirms its commitment to continuing to carry out strategic plans as an independent public company. Nevertheless, the company remains open to opportunities that can increase value for shareholders.
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