h3 Bitfarms Ltd Q2 2024 Earnings Summaryh3p Bitfarms Ltd TSXBITF a global vertically integrated Bitc

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Bitfarms Ltd. Q2 2024 Earnings Summary

Bitfarms Ltd. (TSX:BITF), a global vertically integrated Bitcoin data center company, reported its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics

Metric Q2 2024 Q1 2024 Q2 2023 YoY % Change QoQ % Change Consensus Estimates Performance vs Estimates
Revenue $42 million $50 million $36 million +17% -16% $44.63 million Below
Earnings Per Share (EPS) $-0.07 $-0.02 nm nm nm $-0.11 Better
Gross Mining Margin 51% 64% 48% +300 bps -1300 bps nm nm
Operating Loss $24 million $24 million nm nm nm nm nm
Net Loss $27 million $6 million nm nm nm nm nm
Adjusted EBITDA $12 million $23 million nm nm nm nm nm

Interpretation: Bitfarms reported a revenue of $42 million, slightly below the consensus estimate of $44.63 million, reflecting a 16% quarter-over-quarter decline but a 17% year-over-year increase. The net loss per share was $-0.07, which was better than the expected $-0.11. The gross mining margin narrowed to 51% from 64% in Q1 2024 but improved from 48% in Q2 2023 due to operational efficiencies.

Segment Revenue Performance

Segment Q2 2024 Q1 2024 Previous Guidance Performance vs Guidance
Total Revenue $42 million $50 million Not Provided nm

Interpretation: The revenue from Bitfarms' operational segments totaled $42 million, reflecting significant quarter-over-quarter depreciation due to lower block rewards linked to the BTC halving event.

Operational Data

Metric Q2 2024 Q1 2024
Current Hashrate (EH/s) 11.1 6.5
Current Efficiency (w/TH) 25 21
Daily BTC Production 6.7 BTC/day nm

Interpretation: Bitfarms showed a marked improvement in its operational data, with the current hashrate increasing significantly from 6.5 EH/s to 11.1 EH/s and an efficiency improvement by 26% from Q1 2024.

Comments from Company Officers

Ben Gagnon, recently appointed CEO, noted significant strides in positioning Bitfarms for expedited growth and efficiency gains, emphasizing the strategic expansion into the PJM region in the U.S. and the additional capacity developments in South America. Jeff Lucas, CFO, highlighted the company's strong balance sheet, maintaining liquidity sufficient to meet 2024 growth and efficiency improvement plans.

Dividends & Share Repurchase Program

No dividends were announced in the current earnings report.

Forward Guidance

Bitfarms reiterated its forward guidance, targeting a hashrate of 21 EH/s and operational efficiency of 21 w/TH by year-end 2024.

Stock Price Movement

Following the announcement of the earnings release, Bitfarms' stock price observed a positive change of approximately 4.77%.

Overall, Bitfarms continues to show operational growth despite the challenges of reduced BTC rewards, maintaining robust forward guidance and an active expansion strategy.

The report is well-organized and contains useful information for investors. No changes are required.

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