, 2022-05-16 12:33:28,
Canada-based bitcoin miner Bitfarms reported a net income of $5 million in the first quarter of 2022, down by about 50% from the previous quarter.
The firm also said during its earnings call on Monday that it would scale back expansion plans for the rest of the year due to logistics and supply chain issues related to the increase in natural gas prices.
President and COO Jeff Murphy spined the current challenges the market is facing as an opportunity for the company to “increase relative market share gains,” as the capital supply chain and other constraints potentially slow the growth of the network.
Bitfarms presented a 33.3% decrease in total revenue compared to last quarter, totaling $40 million. Gross mining margins dropped to 76%, compared to 84% in Q4 2021.
Murphy said that Bitfarms continued to present profitable results “despite the price erosion in Bitcoin.”
The company’s expansion plans for 2022 had originally included reaching a target of 7.2 exahash per second (EH/s). But rising gas prices have forced it to reassess that goal. As it stands, Bitfarms expects to reach 6.0 EH/s by the end of the year. It currently operates 3.4 EH/s, representing about 1.5% market share, per the announcement.
A large portion of this growth was associated with the deployment of miners into a new facility in Argentina, operating inside the gates of a private power company, with up to 210 megawatts of power capacity available for Bitfarms.
The company has scaled back its commitments and now anticipates that the completion of phase one of the Argentina project (which includes 50 megawatts) will happen by the end of October 2022, while phase 2 (an additional 50 megawatts) has been pushed back to the first quarter of 2023.
“However to be clear Argentina still remains an…
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