Halving full effect: Bitfarms crypto mining revenue falls 42% in May

Bitfarms saw its Bitcoin mining revenue fall 42% thanks to the first full month of “post-halving economics.”
Bitfarms saw its Bitcoin mining revenue fall 42% thanks to the first full month of “post-halving economics.”

Bitfarms’ crypto mining revenue fell 42% in May — the first full month since the Bitcoin halving took effect in mid-April.

The company reported a fall in Bitcoin production, from 263 Bitcoin (BTC) ($18.1 million) in April to 156 Bitcoin ($10.7 million) in May. In a June 3 statement, Bitfarm described it as the “first full month with post-halving economics.” 

Similarly, the average amount of Bitcoin that Bitfarms earned per unit of computational power fell 45% from 44 exahashes per second (EH/s) to 24 EH/s.

Key performance indicators for Bitfarms in May. Source: Bitfarms

The Bitcoin halving event on April 20 saw the Bitcoin mining subsidy sliced from 6.25 BTC to 3.125 BTC, putting financial strain on miners.

Bitfarms also blamed “unusually cold temperatures” at its Rio Cuarto facility in Argentina for the fall in Bitcoin production. The weather — which Bitfarms claims was the location’s worst in 44 years — forced the firm to curtail its mining operations in Rio Cuarto for eight days.

Bitfarms noted that the damage in Argentina was partially offset by a 4.2% decrease in network difficulty compared to April.

Related: Bitcoin post-halving run may reach $130K by September 2025

During the month, Bitfarms secured an additional 100 megawatts at its Yguazu site in Paraguay through a power purchase agreement with Paraguay’s Administración Nacional de Electricidad, a state-owned entity.

The amendment will double the site’s capacity to 200 megawatts with the potential to add 6 exahashes per second (EH/s) upon installment in 2025.

The firm said its installed hash rate is currently 9.5 EH/s, which would be the fifth largest behind Marathon Digital, Core Scientific, CleanSpark and Riot Platforms, per Hashrate Index data.

Bitfarms said it still has another 16,200 Bitcoin miners en route, which should lift its hash rate up to 12 EH/s once installed. The firm also runs mining operations in the U.S. and Canada.

It comes after the firm recently rejected a $950 million acquisition proposal from Riot Platforms.

Despite the 42% fall in Bitcoin production, Bitfarms (BITF) increased 2.92% on the Nasdaq on June 3, according to Google Finance.

However, BITF is still down 15.9% in 2024 after a solid 2023 which saw the firm’s stock rise 588%.

Source: Google Finance

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