Bitfarms, a publicly listed Wall Street Bitcoin miner, closed out 2024 with impressive achievements despite facing challenges in production. The company saw a significant increase in mining hashrate, reaching 12.8 EH/s, and improved efficiency by 40% to 21 watts per terahash. However, the production of Bitcoin dropped by 41% compared to the previous year, with only 211 Bitcoins mined in December.
The decrease in production was attributed to the growing network difficulty and competitive pressures in the mining sector. Despite this, the company managed to generate USD revenues of $192 million in 2024, a $50 million increase from the previous year. The average Bitcoin price in 2024 played a crucial role in boosting the value of mined Bitcoins, with the price nearly doubling compared to 2023.
Looking ahead, Bitfarms is focusing on diversification to adapt to the evolving landscape of cryptocurrency mining. CEO Ben Gagnon emphasized the company’s strategic pivot towards becoming a North American energy and compute company. The pending acquisition of Stronghold Digital Mining, set to close in Q1 2025, will further solidify Bitfarms’ presence in the U.S. market and increase its potential capacity to 1.6 gigawatts.
Chief Financial Officer Jeff Lucas highlighted Bitfarms’ strong liquidity position, with $145 million in assets at year-end, including $60 million in cash. The company’s Synthetic HODL program, which generated $18 million in trading profits before being closed out in December, contributed to its financial strength. Bitfarms also maintains a healthy Bitcoin treasury of 934 BTC, valued at $87.8 million.
Overall, Bitfarms’ performance in 2024 reflects its resilience and strategic focus on growth and diversification. The company’s efforts to navigate the challenges of the mining sector and capitalize on opportunities in the U.S. market position it for continued success in the future.