Although the company purchased 9,000 more mining rigs, it still suffered from low Bitcoin prices. The public-traded Bitcoin mining company Bitfarms reported today that it suffered a $142million net loss in its second quarter.
Quebec-based Bitfarms bought 3,357 bitcoin during the quarter for $69.3million. This was partly to repay the balance on a loan from Mike Novogratz’s Galaxy Digital. According to to its U.S Securities and Exchange Commission filing, the company had 3,144 BTC valued at $62 million by June.
Revenues increased by $42 million to $37 million in the second quarter of last year. This was due to an increase in hashrate. This is a measure the total computing power on a Blockchain. However, this was offset by a drop in Bitcoin price, which fell from $45,868.95 to $19,269.37 at the beginning of the second quarter, to $57 million by June 30, according to CoinMarketCap. That’s a 58% decrease.
The hash rate is how crypto mining companies assess their potential earnings. Mining is the use of high-end computing devices that race to solve cryptographic puzzles. This helps to secure the network and verify transactions. In return, you may be eligible for newly issued cryptocurrency. Each hash is a guess at a cryptographic string. It is the miner who correctly guesses the string that wins the right to verify transactions worth a block and add them to the blockchain. One exahash is one quintillion of such guesses.
“With strong operational growth, our corporate hashrate increased by 33% since the beginning of the quarter, and by 157% since a year ago, to 3.6 exahash (EH/s at June 30, 2022),” Geoff Morphy was the chief operating officer and president of Bifarms. He stated this in a press statement. We have added to our market share by bringing online phase 2 in The Bunker’s buildout. This is a Bitfarms record.
Since June’s end, prices have risen a little. BTC traded at $24,096.72 Monday morning. The increase in hashrate has been a double-edged sword. The company felt the pinch of rising energy prices.
Bitfarms $32 million cost to sell utilities and infrastructure has nearly tripled in the last quarter. Bitfarms’s quarter-end sales cost of $32 million, which covers utilities and infrastructure, was almost tripled. Bitfarms also added 9,000 MicroBT Howsminers to their fleet, increasing its hash rate from 2.77 Exahash per sec to 3.6 EH/s.