Bitfarms narrows quarterly loss to $85 million

The mining company Bitfarms reported a net loss of $85 million in the third quarter, against $142 million in the previous period.

📈 Q3 2022 Financial Results#Bitfarms will report its third quarter 2022 Financial Results today before the market opens.

Management will host a conference call at 11:00 a.m. ET to review the financial results pic.twitter.com/GG0m37LC9J

— Bitfarms (@Bitfarms_io) November 14, 2022

The company’s negative financial results were largely driven by non-cash losses from the revaluation of cryptocurrency reserves and realised digital assets.

Operating profit (EBITDA) for the period was $10 million.

The company mined 1,515 BTC in the third quarter at total production costs of $14,300 per BTC. Compared with the second quarter, mining costs declined by 16% — from $17,000 per BTC.

For July-September Bitfarms sold 2,595 BTC. As of September 30, the company’s cash reserves stood at $36 million and 2,064 BTC. In June abandoned its strategy of accumulating cryptocurrency.  

“We remain unwavering in our commitment to maintaining financial resilience and flexibility. When BTC’s price began to fall, we started reducing our leverage on the balance sheet. Since June 1, we have repaid debt totaling $94 million, including full repayment of the loans with the highest interest,” said Bitfarms’ chief financial officer Jeff Lucas.

According to him, this will reduce annual interest payments by $9 million.

In the third quarter the company increased hashrate by 17% to 4.2 EH/s. Over the quarter, Bitfarms received and installed around 7,000 ASIC miners.   

By the end of 2022, the firm expects to complete construction of the necessary infrastructure to scale up to 5 EH/s.

Earlier in the quarter, Marathon Digital Holdings narrowed its loss by more than twofold (to $75.4 million), and Riot Blockchain by tenfold ($36.6).

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