Bitfarms Clocks 14% Revenue Growth In Q2; Margins Shrink Due To Fall In BTC Price

• Bitfarms Ltd (NASDAQ: BITF) reported second-quarter FY22 revenue growth of 14% year-on-year to $42 million. Revenues were up 4% from Q1 FY22.

• Bitfarms mined 1,257 Bitcoin (BTC) at an average cost of production of $9,900 per BTC.

• The gross margin contracted 4,100 bps to 23% as costs surged 142.4% Y/Y.

• The gross mining margin contracted by 1,300 bps to 66% due to the decline in the BTC price.

• The operating margin loss deteriorated to (414)%.

• Adjusted EBITDA margin contracted 2,000 bps to 45%.

• Bitfarms held $46 million in cash, and BTC was worth $62 million.

• Bitfarms' infrastructure construction contracts will likely provide 4.2 EH/s as of September 30 and 6.0 EH/s as of December 31.

• Bitfarms has 1.2 EH/s of miners contracted for 2023 for its Argentinian warehouses.

• Price Action: BITF shares traded lower by 5.5% at $1.89 in the premarket on the last check Monday.

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