By George Ward
The Canadian Bitcoin mining enterprise, BitFarms, has closed the third quarter of 2022 with a close to 17% spike in profits. Meanwhile, the last stage of its country-wide expansion projects is expected to be completed before the end of the year.
BitFarms Releases Positive Q3 Performance Report
The Bitcoin mining giant has announced its Q3 fiscal report for 2022. The report also shows a significant profit jump, accompanied by some additions to its user base.
Commenting on the report, BitFarms’ president, Geoff Morphy, announced that the company had recorded 16.5 BTC on average per day in Q3. Thus, for the first nine months of the year, the firm mined 3,733 BTC. This is more than the 3,453 BTC produced in all of 2021.
“This is the second consecutive year that BitFarms is moving towards becoming the leading BTC miner.” It also charges one of the lowest mining fees in the industry as it reduced its production cost by almost 5% in Q3 2022 compared to $9,400 per Bitcoin in Q2 2022″.
Nevertheless, for the third quarter, the mining giant’s production dropped 16% to $14,300. As a result, BitFarms managed to maintain a steady cash inflow from its operations, with $10 million generated from its Adjusted EBITDA despite the unstable BTC’s price.
The Wins And Challenges
According to multiple reports, BitFarms has already mined close to 1,515 BTC in the third quarter of 2022, which ended on the last day of September.
Also, the mining enterprise has dramatically reduced its production costs by 15% from Q2. In addition, it also managed to cut down its operating losses compared to the second quarter. As a result, BitFarms’ net losses were $98 million, in contrast to the $173 million recorded in Q2.
The firm’s revenue for the third quarter slipped significantly compared to the second quarter. However, its net revenue was $33 million, in contrast to $42 million in Q2.
This reflects an even lower average in the prices of BTC, which was partly offset by the firm’s hash rate surge. Furthermore, its gross mining profits were also significantly affected by the revenue drop in Q3.
The report indicated the firm’s gross mining margins were $17 million, compared to Q2’s $27 million. For its liquidity performance, BitFarm, as of the last day of September 2022, held $36 million in fiat and 2,064 BTC tokens with a combined value of $40 million based on the Bitcoin price at the time.
Reacting to the latest report, the CEO of BitFarms, Jeff Lucas, added that the team was adjusting the company’s BTC balance sheet when the asset price began to decrease. BitFarms has also discontinued the use of its highest interest rate systems. By this, the CEO noted that BiFarm would cut its yearly interest rate by $9 million.