Shares of Bitfarms Ltd (NASDAQ: BITF) are up more than 15% on Monday after the bitcoin mining company reported its financial results for the second quarter.
Bitfarms Q2 financial highlights
Net loss printed at $142 million versus the year-ago $4.0 million
Per-share loss climbed sharply from 2.0 cents to 70 cents
Revenue jumped 14% year-over-year to $41.82 million
Consensus was 5 cents of loss on $48.03 million in revenue
Mined 1,257 bitcoins at $9,900 per BTC on average
Costs surged 142.4% to contract gross margin by 4,100 bps
Corporate hashrate more than doubled YoY to 3.6 exahash per second EH/s. In the earnings press release, COO Geoff Morphy said:
Entering the second half of 2022, we’re focused on executing our growth and maximising our profitability. By bringing online our first warehouse in Argentina and Phase 3 of The Bunker buildout, we’re targeting 4.2 EH/s and 6.0 EH/s by the end of Q3 and year-end, respectively.
Bitfarms shares up on positive cash flow
Bitfarms reported positive cash flow from operations (adjusted EBITDA of $19 million) in the second quarter even though the price of Bitcoin was down significantly. CFO Jeff Lucas wrote in the earnings report:
By deleveraging our balance sheet and increasing financial flexibility, we’re better positioned to execute our growth initiatives to drive market share gains and increased production. We optimised resources, deferring $39 million in CAPEX from Q4 of 2022 into 2023.
The Toronto-headquartered firm ended the quarter with $46 million in cash and roughly $62 million worth of bitcoin. H.C. Wainwright strongly recommends that you buy Bitfarms shares down over 50% for the year.