Bitfarms Shares Drop On Q3 Revenue Decline Of 26% Reflecting BTC Price Slump

Bitfarms Shares Drop On Q3 Revenue Decline Of 26% Reflecting BTC Price Slump
  • Bitfarms Ltd BITF reported a third-quarter FY22 revenue decline of 26% year-on-year to $33.2 million
  • Bitfarms mined 1,515 Bitcoin (BTC) at an average cost of production of $9,400 per BTC.
  • The gross margin loss was (12)% as costs surged 143% Y/Y. The gross mining margin contracted by 3,000 bps to 52% due to the decline in the BTC price. 
  • The operating margin loss was (294)% versus 76% last year. Adjusted EBITDA margin contracted 3,500 bps to 31%.
  • Bitfarms held $36 million in cash, and BTC was worth $40 million.
  • Geoff Morphy, Bitfarms' President and COO said, "Our corporate hashrate increased by 17% from the beginning of the quarter and by 180% from a year ago to 4.2 exahash per second (EH/s) at September 30, 2022. However, as we enter Q4 2022, we modified our corporate hashrate guidance from 6.0 EH/s to 5.0 EH/s to reflect the impact of the Argentinian macroeconomic environment on the timing of importing miners."
  • Price Action: BITF shares traded lower by 6.51% at $0.7967 on the last check Monday.

Posted In: BriefsEarningsNewsPenny Stocks