Bitfarms Ltd, a Canadian Bitcoin mining company, announced its financial results for the first quarter ended March 31, 2022. Bitfarms said on Monday that it has mined 961 Bitcoin (BTC) at an average cost of production of $8,700/BTC during Q1 2022.
The Toronto-based Bitfarms admitted that financial results in Q1 2022 were significantly impacted by the decline in the market price of Bitcoin during the quarter as compared to Q4 2021.
The firm said it increased total revenues to $40 million in Q1 2022, up 40%, from $28 million in Q1 2021, but a decrease from $60 million in Q4 2021.
Geoff Morphy, Bitfarms’ President and chief operating officer, talked about the development and said: “We delivered another profitable quarter in Q1 2022, even with the decline in BTC price, and revenues were up 42% compared to Q1 2021. We have grown faster than the BTC network, as our hashrate at quarter-end was 2.7 Exahash per second (EH/s), up 22% from December 31, 2021. As of today, our hashrate is 3.4 EH/s, representing about 1.5% market share.”
Bitfarms mentioned that it continued its global expansion in Q1 2022, as it started mining production facilities at The Bunker and Leger in the City of Sherbrooke, Quebec, as well as in Villarrica Paraguay. The firm further disclosed that it also acquired a new Sherbrooke location, which it refers to as ‘Garlock’ that will eventually replace its de la Pointe mining facility.
With 137 megawatts (MW) of productive capacity in place and 229 MW planned to be operational this year, the company is moving forward with increases in its hashrate. Bitfarms said that it expects to exceed 4.0 EH/s by June 30.
With the dip in Bitcoin, Bitfarms seized the opportunity to transfer cash into early this year BTC. In January, Bitfarms purchased $43.2 million in Bitcoin as the cryptocurrency plunged about 12% during the first week of the year. The firm became the latest publicly-traded company to double down on the nascent crypto market despite some experts warning that the crypto volatility makes it an unreliable investment.
In January, Bitfarms bought 1,000 Bitcoins, a move that boosted its holdings to more than 4,300 coins worth about $175 million. Comparing that, Bitfarms posted about $121 million in revenue during the 12 months ending in September last year.
Bitfarms’ investment came less than a week after MicroStrategy bought almost 2,000 Bitcoins for $94 million at the beginning of December, as prices similarly struggled to recoup losses following its November all-time high of around $69,000 per coin.
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