TL;DR
- Bitfarms reported Q1 2024 revenue of $50 million, up 67% year-over-year and 9% quarter-over-quarter
- Hashrate reached 7.0 EH/s, with guidance targeting 21 EH/s by year-end — a 223% increase
- Gross mining margin improved to 59% from 41% in Q1 2023, driven by fleet efficiency upgrades
- Company secured 88,000 miners for 2024 delivery and doubled Paraguay power capacity to 200 MW
- On the same day, Valour Inc. launched the world’s first yield-bearing Bitcoin ETP in collaboration with Core Foundation
Bitfarms Ltd., a global Bitcoin mining company listed on Nasdaq and the Toronto Stock Exchange under the ticker BITF, reported robust first-quarter 2024 results on May 15, 2024, showcasing significant operational and financial improvements as the company races to expand its mining capacity ahead of increasing institutional demand for Bitcoin.
The Toronto-based miner posted total revenue of $50 million for the quarter ended March 31, 2024, representing a 67% increase from the same period in 2023 and a 9% improvement over Q4 2023. The results reflect both higher Bitcoin prices and the company’s ongoing fleet modernization efforts, which have dramatically improved mining efficiency.
Hashrate Surge and Fleet Modernization
Bitfarms has been executing an aggressive fleet upgrade program that the company describes as the most transformative in its history. Current hashrate stands at 7.0 exahashes per second (EH/s), up from 6.5 EH/s at the end of 2023. The company remains on track to achieve its full-year guidance of 21 EH/s and 21 watts per terahash (w/TH), which would represent a 223% hashrate increase and a 40% efficiency improvement compared to year-end 2023.
According to Ben Gagnon, Bitfarms’ Chief Mining Officer, the company expects to reach 12 EH/s and 25 w/TH by the end of Q2 2024. The miner upgrades have already improved overall fleet efficiency from 35 w/TH to 31 w/TH, with combined efficiency improvements of 51% at the Garlock and Farnham facilities in Quebec.
In March 2024, Bitfarms secured an additional 24,000 Bitmain miners, bringing its total 2024 delivery commitments to 88,000 units. These include Bitmain T21 and S21 models, which are among the most energy-efficient mining machines available, and are slated for deployment in the second half of the year.
Financial Performance and Cost Management
The company’s gross mining margin improved to 59% in Q1 2024, a significant increase from 52% in Q4 2023 and 41% in Q1 2023. This improvement reflects the combination of higher Bitcoin prices and greater operational efficiency. Bitfarms mined 943 BTC during the quarter at an average direct cost of production of $20,500 per BTC, compared to $16,200 in Q4 2023 — the increase in per-unit cost was driven by a lower quantity of BTC earned due to rising network difficulty.
Total cash cost of production per BTC was $30,300 in Q1 2024, up from $25,200 in the prior quarter. Despite this increase, the company’s margins benefited from Bitcoin’s price appreciation, with the cryptocurrency trading around $66,000 during the period.
Bitfarms reported a net loss of $6 million, or $(0.02) per share, which included a $9 million non-cash gain from revaluation of warrant liability. This marked a significant improvement from Q4 2023’s net loss of $57 million. Adjusted EBITDA came in at $21 million, or 42% of revenue, up from $14 million (30% of revenue) in the previous quarter.
Paraguay Expansion and Power Strategy
A cornerstone of Bitfarms’ growth strategy is its expanding presence in Paraguay. The company recently doubled its contracted power capacity at its Yguazu site from 100 megawatts to 200 MW of stable, low-cost, sustainable hydropower. This expansion will increase Bitfarms’ total megawatts under management by 23%, from 428 MW at year-end 2024 to 528 MW in 2025.
The Paraguay operations benefit from access to abundant renewable energy from the Itaipu and Yacyretá hydroelectric dams, providing some of the lowest electricity costs in the global Bitcoin mining industry. The company purchased land in Yguazu in January 2024 and began construction on the initial 100 MW facility, with the expanded capacity providing significant room for growth.
Additionally, Bitfarms received confirmation from Canadian tax authorities in April that $24 million in previously paid value-added taxes would be refunded, along with future payments. This recovery reduces the average direct cost of production per BTC by approximately $2,100 in Q1 terms.
World’s First Yield-Bearing Bitcoin ETP Launches
May 15, 2024, also marked a significant milestone for the broader Bitcoin ecosystem as Valour Inc., a subsidiary of DeFi Technologies, launched the world’s first yield-bearing Bitcoin ETP on the Nordic Growth Market (NGM) exchange. The Valour Bitcoin Staking (BTC) SEK ETP offers investors exposure to Bitcoin with a 5.65% annual yield, made possible through native Bitcoin staking on the Core blockchain.
The ETP generates yield by delegating Bitcoins to validators on the Core Chain, a Bitcoin-powered layer-one blockchain compatible with the Ethereum Virtual Machine. Core’s unique Satoshi Plus consensus mechanism leverages Bitcoin mining hash power — approximately 50% of the total network hash rate contributes to Core’s security — creating a novel intersection between Bitcoin mining and decentralized finance.
The product carries a 1.9% management fee and began trading on May 10, 2024. It represents a new category of financial products that bridge traditional capital markets with Bitcoin staking infrastructure, offering institutional investors yield generation without requiring them to sell or trade their Bitcoin holdings.
Liquidity and Balance Sheet
As of March 31, 2024, Bitfarms reported total liquidity of $124 million, comprising $66 million in cash and 806 BTC valued at approximately $58 million based on a Bitcoin price of $71,400 at quarter-end. The company sold 941 BTC at an average price of $52,700 during Q1, generating $50 million in proceeds used to fund operations and expansion.
The company also raised $38 million through its at-the-market equity offering program during Q1, with total proceeds reaching $121 million through May 14, 2024. Bitfarms has fully paid off its equipment-related indebtedness and entered into a sale-and-leaseback agreement for its Garlock facility to monetize additional capital for expansion.
Why This Matters
Bitfarms’ Q1 results illustrate the rapid transformation underway in the Bitcoin mining industry. As the company scales toward 21 EH/s, it is positioning itself among the most efficient publicly traded miners globally. The simultaneous launch of yield-bearing Bitcoin products like Valour’s ETP signals a maturing ecosystem where mining infrastructure increasingly intersects with decentralized finance. For investors and industry observers, these developments point to a Bitcoin economy that is becoming more sophisticated, institutional, and interconnected.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
21 EH/s by year end? bitfarms is actually printing. paraguay expansion is a big brain move for cheap power given the current energy costs.
yields on btc via the valour etp? finally some institutional products that actually make sense for long term holders. curious about the fee structure though.
securing those miners before the next halving cycle was a pro move. bitfarms clearly knows how to manage ops while others are struggling.
paraguay is the new frontier for mining. glad to see them doubling down on hydro power. sustainable mining is the only way forward for the industry.