Key Points
- Bitfarms reports its lowest monthly earnings in over two years due to the fourth Bitcoin halving.
- The company is upgrading its Bitcoin mining equipment with a $240 million investment.
Bitfarms, a prominent mining firm, has been significantly affected by the fourth halving of Bitcoin (BTC). This event has resulted in the company reporting its lowest monthly earnings in over two years.
In April 2024, Bitfarms earned 269 BTC through mining rewards and transaction fees. To combat the reduced rewards, the company is investing $240 million in upgrading its Bitcoin mining equipment.
Upgrade and Future Prospects
The upgrade involves acquiring 88,000 highly efficient Bitcoin miners. Once completed, this will triple Bitfarms’ current hash rate capacity to 21 exahashes per second (EH/s).
The company’s April production update revealed an improvement in its corporate energy efficiency by 9% to 31 watts per terahash (w/TH).
On top of its 269 BTC monthly earnings (approximately $15.5 million), Bitfarms anticipates a $23.7 million value-added tax (VAT) refund from Canada. Bitfarms’ chief mining officer, Ben Gagnon, shared an update on the upgrade, stating that two farms in Québec, Canada, were fully upgraded with Bitmain T21 miners in April. This improved energy efficiency by 51% at those farms and 9% on a company-wide basis.
Bitcoin Halving Impact
The Bitcoin halving resulted in a 5.9% increase in network difficulty compared to March, further impacting the earnings of all miners. For Bitfarms, ongoing turbine maintenance in Argentina also temporarily lowered its monthly mining capacity.
The company’s April earnings of 269 BTC were 6% lower than the previous month and 29% lower year-over-year. Bitfarms earned 9 BTC per day, which amounted to roughly $551,700 daily, based on a BTC price of $61,300 on April 30, 2024.
In the first three months of 2024, Bitfarms earned 357 BTC, 300 BTC, and 286 BTC, respectively. The company’s treasury also increased its Bitcoin holdings from 806 BTC to 830 BTC in April.
