Bitfarms Mines $192M Worth of Bitcoin in 2024 Despite Lower Production
2025-01-03
Bitfarms, the publicly listed Bitcoin miner, ended 2024 with a robust performance despite facing competitive pressures and network difficulty. The company mined 2,914 BTC last year, resulting in $192 million in revenue—up $50 million compared to 2023. While production dropped by 41%, the surge in Bitcoin's average price to $66,000 helped offset the decline, showing the resilience of Bitfarms' operations. Here's a closer look at Bitfarms' 2024 performance and its future strategy.
Key Takeaways
- Increased Revenue: Bitfarms mined 2,914 BTC in 2024, earning $192 million, a $50 million increase from the previous year.
- Efficiency Gains: The company doubled its hashrate to 12.8 EH/s and improved mining efficiency by 40%.
- Strategic Pivot: Bitfarms is shifting from an international Bitcoin miner to a North American energy and compute company, with a major acquisition pending.
Bitfarms' Performance in 2024
Despite facing significant challenges in 2024, Bitfarms reported substantial gains in revenue due to the price appreciation of Bitcoin. The company mined 2,914 BTC last year, down from 4,928 BTC in 2023, a 41% decrease. However, with the average price of Bitcoin soaring to nearly $66,000—compared to $29,000 in 2023—the total value of mined Bitcoin surged, leading to a revenue of $192 million, a $50 million increase from the previous year.
Hashrate and Efficiency Improvements
Bitfarms made significant strides in its mining operations, doubling its hashrate to 12.8 exahashes per second (EH/s) and improving efficiency by 40%. These gains were crucial for the company in navigating the challenges posed by increasing network difficulty and heightened competition in the Bitcoin mining sector.
However, despite these improvements, Bitfarms mined fewer Bitcoins in December 2024—211 BTC compared to 446 BTC in December 2023—indicating the intensified competition and mining difficulty.
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Strategic Pivot and Future Plans
Bitfarms' CEO, Ben Gagnon, noted that the company is undergoing a strategic pivot, transitioning from an international Bitcoin mining operation to a North American energy and compute-focused company. This shift is in response to the increasing difficulties in the cryptocurrency mining space.
One of the most significant moves in this pivot is Bitfarms' pending acquisition of Stronghold Digital Mining, expected to close in Q1 2025. This merger is set to be the largest acquisition between publicly traded Bitcoin miners and will significantly expand Bitfarms’ presence in the U.S. PJM power market. The deal will also increase the company's potential capacity to 1.6 gigawatts, with 66% of that capacity based in the United States.
Financial Position and Bitcoin Treasury
Bitfarms' financial position remains strong, with the company reporting a liquidity position of $145 million at year-end 2024, including $60 million in cash. The company’s Synthetic HODL program, launched in October 2023, generated approximately $18 million in trading profits, with a 135% return before being closed out in December.
At the end of 2024, Bitfarms held a Bitcoin treasury of 934 BTC, valued at $87.8 million based on the year-end Bitcoin price of $94,000. The company also sold 147 BTC in December as part of its regular treasury management strategy, generating $14.3 million in proceeds.
Conclusion
Despite a drop in production, Bitfarms’ increased efficiency, strategic pivot, and the rise in Bitcoin’s price helped drive impressive revenue figures in 2024. With the pending acquisition of Stronghold Digital Mining and a shift toward the North American market, Bitfarms is positioning itself for long-term success in the evolving Bitcoin mining landscape. Its strong financial position, including a healthy Bitcoin treasury, further supports the company’s growth trajectory in 2025.
FAQs
1. How much revenue did Bitfarms generate in 2024?
Bitfarms generated $192 million in revenue from mining 2,914 BTC in 2024, up $50 million from the previous year.
2. What improvements did Bitfarms make to its mining operations in 2024?
Bitfarms doubled its hashrate to 12.8 EH/s and improved mining efficiency by 40%, helping the company mitigate some of the challenges faced due to network difficulty.
3. What is Bitfarms' strategic pivot?
Bitfarms is transitioning from being an international Bitcoin miner to a North American energy and compute company. This includes acquiring Stronghold Digital Mining to expand its presence in the U.S. power market and increase its mining capacity.
Disclaimer: The content of this article does not constitute financial or investment advice.
