Bitcoin miner Bitfarms loses $142 million, but share rises 8.5%

The listed Bitfarms has a tough second quarter from 2022 behind us. The high energy prices and of course the falling Bitcoin price have resulted in a loss of $142 million for the company. During the second quarter, Bitfarms was also forced to part with 3,357 Bitcoin for $69.3 million.

Why did Bitfarms have to sell?

Bitfarms had to sell that 3,357 Bitcoin to repay Mike Novogratz’s outstanding Galaxy Digital loan. That sale resulted in Bitfarms holding just 3,144 Bitcoin at the end of the second quarter, worth about $68 million.

Despite the loss and the forced sale, Bitfarms share scored a plus of 8.59 percent yesterday. In that regard, the market still seems to have enough confidence when it comes to Bitfarms. With a market cap of 553.77 million Canadian dollars, Bitfarms is one of the smaller listed miners in the market.

At the time of writing, you can buy a share of Bitfarms for 2.78 Canadian dollars, while the all-time high is 11.60 dollars. Bitfarms reached an all-time low in June of this year with a price of 1.37 Canadian dollars. So you can see that listed Bitcoin miners are quite volatile.

Higher revenue for Bitfarms

Bitfarms revenue is up 13.5 percent in the second quarter of 2022 due to an increase in hashrate. This year, Bitfarms took in $42 million in the second quarter, compared to $37 million last year. Even with a Bitcoin price that was about 50 percent lower than last year in the second quarter, Bitfarms revenue has therefore increased.

While revenue is up 13.5 percent from last year, the hashrate is currently 33 percent higher. With the current hashrate of 3.6 exahash per second, Bitfarms controls about 2 percent of the Bitcoin network, marking a record for Bitfarms. In addition to the pain of the lower Bitcoin price, Bitfarms has also suffered from the higher energy prices.

Read Also:  Bitcoin Price Plunge Explained

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