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Bitfarms (NASDAQ:BITF) Q2 earnings on Monday highlighted an operating loss of $173M as the bitcoin (BTC-USD) miner suffered from a shortfall in its BTC holdings and deleveraged its balance sheet to free up capital.
Going forward, “by bringing online our first warehouse in Argentina and phase 3 of The Bunker buildout, we are targeting 4.2 EH/s and 6.0 EH/s by the end of third quarter and year-end 2022, respectively,” said Geoff Morphy, chief operating officer and president.
Q2 EPS of -$0.70 may not be comparable to the consensus of $0.05, falling from -$0.02 at June 30, 2021.
Revenue of $41.8M missed the average analyst estimate of $48.03M and rose from $36.7M a year before.
Gross mining profit for Q2 slipped to $27M from $28M in Q2 2021.
Q2 adjusted EBITDA of $19M vs. $21M in Q2 2021.
The $173M operating loss included a $78M realized loss on disposition of digital assets, a $70M unrealized loss on revaluation of digital assets, and an $18M impairment of goodwill. That compared with an operating loss of Just $2M in Q2 of last year.
The company sold 3,357 bitcoins (BTC-USD) for proceeds of $69M based on the crypto's price of ~$19.8K at June 30. It's holding $46M in cash and 3,144 BTC valued at ~$62M.
Furthermore, Bitfarms (BITF) mined 1,257 bitcoins (BTC-USD) at an average direct cost of $9.9K per BTC, and "increased our corporate hashrate by 33% from the beginning of the quarter and by 157% from a year ago to 3.6 exahash per second (EH/s) at June 30, 2022," said Morphy.
Conference call at 11:00 a.m. ET.
Earlier, Bitfarms GAAP EPS of -$0.70, revenue of $42M.