Key Points
- Bitfarms’ mining revenue fell by 45% to $7 million in the first full month following the Bitcoin halving.
- The company rejected a nearly $1 billion acquisition proposal from Riot Platforms.
Bitfarms, a prominent Bitcoin miner, recently published its monthly production figures. These numbers underscore the impact of the Bitcoin halving on the firm’s profitability and hint at potential industry consolidation.
In May, Bitfarms mined 156 BTC, marking a 42% decrease from the previous month and a 66% drop year over year. The company sold 136 BTC, generating a total income of $8.9 million. This figure is significantly lower than the $16.1 million made in April as part of the company’s standard treasury management process.
Bitcoin Halving Impact
The company’s total BTC treasury swelled to 850 BTC, equivalent to $57.2 million based on the BTC price of $67,300 on May 31. The amount of BTC earned per average exahash per second of computational power fell by 45% from the previous month, as May was the first full month following the Bitcoin halving.
Bitcoin halvings are designed to happen automatically approximately every four years. After a halving event, miners get 50% fewer bitcoins as a reward for each transaction block they mine and add to the blockchain. However, they continue to receive additional transaction fee rewards for each block mined.
Company Updates
Ben Gagnon, Bitfarms’ Chief Mining Officer, said, “Our fleet upgrade is progressing at a rapid pace. Year-to-date we have received 25,600 miners and installed 23,600 miners, with the remaining 16,200 miners in route. Together, these miners provide sufficient hashing power to achieve 12 EH/s in June.”
Bitfarms recently declined a nearly $1 billion acquisition offer from Riot Platforms, another Bitcoin mining company. Riot Platforms proposed to purchase all of Bitfarms’ outstanding shares at a 24% premium on the one-month weighted average per share. The total equity value of the deal would have been $950 million. Riot has since bought a 9.25% stake in Bitfarms, becoming the largest shareholder in the company.
Bitfarms, established in 2017, operates 12 Bitcoin mining facilities and is developing another in four countries: Argentina, Canada, Paraguay, and the United States.
