Bitfarms faced a challenging period following Bitcoin's fourth halving, resulting in its lowest monthly earnings in over two years. By April 2024, the company anticipates a significant reduction in mining rewards and transaction fees. To counteract this, Bitfarms is executing a $240 million upgrade to its Bitcoin mining equipment, aiming to maintain profitability amidst the permanently reduced rewards. This upgrade involves acquiring 88,000 high-efficiency Bitcoin mining rigs, which will triple Bitfarms' current hashrate capacity to 21 exahashes per second (EH/s).
In its April production update, Bitfarms revealed a 9% improvement in enterprise energy efficiency, now operating at 31 watts per terahash (w/TH). Alongside generating monthly revenue of 269 BTC (approximately $15.5 million), Bitfarms expects to refund $23.7 million in value-added tax (VAT) to Canada. Chief Mining Officer Ben Gagnon provided insights into the fleet upgrades, noting that two mining sites in Quebec, Canada were fully upgraded using Bitmain T21 mining machines. These upgrades resulted in a 51% improvement in energy efficiency for the upgraded mines and a 9% enhancement across the entire company.
Despite the challenges, Bitfarms managed to earn 269 BTC in April, marking a 6% decrease month-on-month and a 29% decline year-over-year. With Bitfarms earning approximately 9 BTC per day, its daily revenue stood at approximately $551,700 based on the BTC price of $61,300 on April 30, 2024. Throughout the first three months of 2024, Bitfarms recorded earnings of 357 BTC, 300 BTC, and 286 BTC, respectively. Additionally, Bitfarms' treasury expanded its Bitcoin holdings from 806 BTC to 830 BTC in April.
