tl;dr
Bitfarms reported a significant decline in net financial income to $2.1 million in Q1 2025, down from $11.4 million a year earlier, largely due to reduced gains on derivatives and warrant revaluations. This contributed to a widened net loss of $35.9 million compared to a $6 million loss in Q1 2024. ...
Bitfarms reported a sharp 82% year-over-year drop in net financial income for Q1 2025, falling to $2.1 million from $11.4 million the previous year. This decline was primarily due to reduced gains on derivatives and warrant revaluations, contributing to a widening net loss of $35.9 million, up from a $6 million loss in Q1 2024.
Total revenue, however, rose 33% year-over-year to $66.8 million, fueled by higher Bitcoin prices and an increased hashrate of 13.5 EH/s, up from 5.9 EH/s the prior year. Despite the revenue growth, Bitfarms mined fewer Bitcoins—693 compared to 943—due to the April 2024 block reward halving and a 44% increase in network difficulty. Gross mining profit fell 11% to $28 million, while adjusted EBITDA dropped 35% to $15.1 million.
Bitfarms expanded its operational hashrate to 19.5 EH/s with 70% of capacity now in North America after acquiring Stronghold Digital Mining. This acquisition added 1.4 EH/s and brought in new energy assets, including refuse-fueled power plants in Pennsylvania. Operational and energy costs increased significantly, with energy expenses rising 31% to $25.4 million and heightened infrastructure spending due to new site developments in the U.S. and Canada.
The company sold 428 BTC for $37.3 million during the quarter and held 1,492 BTC valued at $123.2 million as of March 31. However, Bitfarms halted operations at its Argentina mining site on May 12 after an indefinite power supply cutoff by the local provider. Representing 13% of the company's total energized capacity, this disruption led to a $15.9 million impairment loss due to worsening macroeconomic conditions and rising energy costs, especially for natural gas. The impairment will be accounted for in Q2 earnings.
Total comprehensive loss for the quarter was $49.3 million, a stark contrast to the $11.5 million income reported in Q1 2024, reflecting ongoing industry challenges and regional operational uncertainties for Bitfarms.