Bitfarms Reports 82% Year-Over-Year Decline in Revenue, Leading to a Net Loss of $35.9 Million

Bitfarms disclosed a net financial income of $2.1 million for the first quarter of 2025, significantly down from $11.4 million the previous year. This decline was attributed to lower gains on derivatives and changes in warrant valuations.

In its recent Management’s Discussion and Analysis, Bitfarms indicated that the dip in financial income contributed to an increase in net loss, which reached $35.9 million, a noticeable rise from the $6 million loss reported in the first quarter of 2024.

The reduction in gains from the revaluation of warrant liabilities linked to the company’s 2023 private placement was a major factor in the $9.3 million year-over-year decrease in financial income, with a $3.4 million drop noted. The fair value of these liabilities decreased more slowly during the quarter compared to the previous year’s adjustments.

Moreover, Bitfarms experienced a $6.2 million fluctuation in performance related to derivatives, which included a $2.2 million net loss connected to its Bitcoin Redemption Option and a $1.5 million loss from the Bitcoin One Program. The latter incurred a $6.3 million unrealized loss on open positions, partly mitigated by $4.8 million in realized gains. In contrast, the same quarter in 2024 saw a $2.5 million gain from unrealized appreciation in Synthetic HODL derivative contracts.

Total revenue saw a year-over-year increase of 33%, climbing to $66.8 million from $50.3 million in the first quarter of 2024, bolstered by rising average Bitcoin prices and enhanced hash rate capacity.

Bitfarms increased its average operational hashrate from 5.9 EH/s to 13.5 EH/s due to miner upgrades and the acquisition of Stronghold Digital Mining, adding 1.4 EH/s to their total capacity.

Despite the increase in capacity, the company mined fewer bitcoins this quarter, with 693 BTC produced compared to 943 BTC the previous year. This decrease reflects reduced block rewards following the April 2024 halving and a 44% uptick in network difficulty.

The average total cash cost for mining one BTC climbed to $72,300, while average sale prices hit $87,100. Gross mining profit experienced an 11% decrease, totaling $28 million, and adjusted EBITDA fell by 35% to $15.1 million.

At the end of the quarter, Bitfarms managed a hash rate of 19.5 EH/s and maintained 461 megawatts of energized capacity, with approximately 70% located in North America.

The integration of Stronghold’s operations provided new energy generation options, including refuse-fueled power assets in Pennsylvania.

Operational expenses surged due to this expansion, with energy costs rising 31% to $25.4 million and increased spending on hosting and infrastructure related to the timing of the Stronghold acquisition and ongoing development projects in the US and Canada.

During the quarter, Bitfarms sold 428 BTC for $37.3 million and held 1,492 BTC worth $123.2 million as of March 31. The total comprehensive loss for the quarter amounted to $49.3 million, compared to a profit of $11.5 million in Q1 2024.

The mining site in Rio Cuarto, Argentina, which constituted 13% of Bitfarms’ total energized capacity as of March 31, was shut down on May 12 after the local electricity supplier suspended power delivery indefinitely.

Uncertain about the restoration of service, Bitfarms is reviewing whether to continue its regional operations.

Consequently, the company reported a $15.9 million impairment loss associated with its Argentina cash-generating unit, citing deteriorating economic conditions and rising energy costs, especially for natural gas.

These financial losses stemming from the disruption will be reflected in the firm’s second-quarter earnings report.