Bitfarms Registers 55% Topline Decline In Q4 Amid Challenging BTC Pricing Environment
Bitfarms Ltd (NASDAQ: BITF) reported a fourth-quarter FY22 revenue decline of 55% year-on-year to $27.04 million.
Bitfarms mined 1,434 Bitcoin (BTC) at an average cost of production of $11,100 per BTC.
The gross margin loss was (45)% versus 65% a year ago due to the revenue decline. The gross mining margin contracted by 5,100 bps to 33% due to the decline in the BTC price.
The operating margin loss was (74)% versus 25% last year. Adjusted EBITDA margin contracted 6,400 bps to 4%.
Bitfarms held $31 million in cash, and BTC was worth $7 million.
CEO Geoff Morphy said, "Over the past nine months, we completed the construction and commissioning of three new farms in Canada, further optimized existing operations, and improved financial flexibility. These initiatives contributed to increasing our hashrate to 4.5 EH/s as of December 31, 2022, over 100% from the beginning of 2022. Looking ahead, we plan to leverage our existing infrastructure in Argentina and utilize equipment credits to prudently expand our EH/s to 6.0 with our existing assets by year end 2023. With our strengthened balance sheet, we are actively evaluating potential acquisitions that we expect to be accretive and complement our geographically diverse mining operations."
Price Action: BITF shares traded higher by 7.69% at $0.98 on the last check Tuesday.
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This article Bitfarms Registers 55% Topline Decline In Q4 Amid Challenging BTC Pricing Environment originally appeared on Benzinga.com
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