Source: financemagnates, 2/1/2024
Wall Street-listed Bitcoin mining company (NASDAQ: BITF) ended 2024 with an increase in mining hash rate and US dollar revenue, despite production down 41% compared to the previous year.
Bitcoin mining company doubles the hash rate, signaling a big boost to the US market
The Bitcoin mining company reported a 97% year-on-year increase in hash rate to 12.8 exhausts and a 40% improvement in efficiency to 21 watts per Tera hash. Despite these gains, the company mined 211 bitcoins in December, down from 446 in the same month last year, reflecting increased network difficulty and competitive pressures in the mining sector.
The result was among the weakest throughout the year, with total production in 2024 reaching 2,914 BTC, compared to 4,928 BTC in 2023. However, the average price of bitcoin in 2024, at nearly $66,000, significantly increased the value of bitcoins mined compared to 2023, when the average price was just under $29,000. As a result, revenue from mining last year was $192 million, an increase of 50 Million dollars. However, the company is exploring ways to diversify, realizing that cryptocurrency mining is becoming more challenging.
“We are implementing a strategic shift from an international Bitcoin mining company to a North American energy and computing company,” said CEO Ben Gagnon. “While we did not achieve all of our original growth targets, 2024 was transformative for our operations and location.”
The company’s pending acquisition of Stronghold Digital Mining, which is expected to close in the first quarter of 2025, represents the largest merger among public Bitcoin mining companies to date. This deal will significantly expand Bit farms’ presence in the PJM energy market in the U.S. and increase its potential capacity to 1.6 GW, with approximately 66% of it in the U.S.
Chief Financial Officer Jeff Lucas highlighted the company’s strong liquidity position of $145 million at the end of the year, including $60 million in cash. The company’s Synthetic HODL program, launched in October 2023, generated nearly $18 million in trading profits with a return of 135% in US dollars before it closed in December.
Bit farms maintains a healthy Bitcoin vault of 934 BTC, worth $87.8 million based on the Dec. 31 price of $94,000. The company sold 147 BTC in December as part of regular treasury management, generating $14.3 million in revenue.
“We are implementing a strategic shift from an international Bitcoin mining company to a North American energy and computing company,” said CEO Ben Gagnon. “While we didn’t achieve all of our original growth targets, 2024 was transformative for our operations and location.” Despite these gains, the company mined 211 bitcoins in December, down from 446 in the same month last year, reflecting increased network difficulty and competitive pressures in the mining sector.
