Bitfarms Reports 42% Drop in Bitcoin Earnings Post Halving

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As an experienced analyst, I believe that Bitfarms’ revenue decline in May is a natural response to the Bitcoin halving, which significantly reduced the rewards for mining new blocks. This trend was also evident in the 45% decrease in BTC per average EH/s seen after the halving.

In May, Bitfarms announced a significant decline of approximately 42% in Bitcoin earnings compared to the previous month, generating around 156 BTC. This decrease aligns with Bitfarms’ post-halving phase, during which Bitcoin earnings per average hash rate decreased by roughly 45%.

After the Bitcoin halving, the first complete month brought about difficulties, leading to a decrease in daily revenue generated from mining Bitcoin to approximately $340,000.

Response to Market Changes

In spite of taking a revenue blow, Bitfarms remains committed to enhancing its mining operations. According to Ben Gagnon, our Chief Mining Officer, we have brought in an impressive 25,600 new miners this year, with 23,600 of them already up and running.

By June, our hashing power is planned to reach 12 EH/s through expansion, demonstrating our unwavering dedication to growth in the face of market adversities.

Lately, Riot Platforms made an offer to acquire Bitfarms for close to a billion dollars, but Bitfarms declined. This event occurred as Bitfarms’ shares surged by 4% to reach $2.33, despite a 18% decrease in value throughout the year.

With a 9.25% ownership, Riot Platforms has become the leading investor in Bitfarms. This development is drawing attention in the mining sector, potentially signaling a major consolidation trend in the industry.

Additionally, the mining sector keeps a keen eye on these advancements, as they may shape finance and operational plans across the industry as a whole.

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2024-06-03 23:00