Bitfarms Q1 2025: Revenue Soars, But Halving Squeezes Margins

Revenue Up 33%, But Mining Margins Plummet

Listen up, crypto fans! Bitfarms just dropped their Q1 2025 numbers, and while revenue hit a sweet $67 million—a 33% jump from last year—the party's been crashed by skyrocketing production costs. Post-April 2024 Bitcoin halving, their mining margins tanked hard, dropping from a comfy 63% down to a tight 43%. Ouch!

Costs Skyrocket: Bitcoin Now Costs $72,300 to Mine

Hold onto your hats, miners! The cost to mint one Bitcoin has shot up to a whopping $72,300 from just $27,900 last year. Direct costs? They've more than doubled to $47,800 from $18,400. The halving's no joke, squeezing margins like a vice as mining gets pricier by the day.

Operational Boost: Hashrate and Efficiency Up, But Not Enough

Despite the financial heat, Bitfarms is cranking up the gears. They're now hashing at 19.5 EH/s, a massive leap from last year's 6.5 EH/s. Efficiency's up too, down to 19 watts per terahash from 34 watts, a solid 44% boost. Their power game's strong with 461 megawatts of capacity, up from 240 last year. But guess what? It's still not enough to fend off the rising tide of costs.

Industry-Wide Margin Squeeze: Hut 8 Corp. Feels the Heat Too

Bitfarms isn't alone in this battle. Hut 8 Corp. just reported a brutal revenue drop of over 50% this quarter, flipping into the red big time. CEO Asher Genoot's calling it—the halving's hitting everyone where it hurts.

Bitfarms' Pivot to HPC: $300 Million to Fuel Panther Creek

So what's Bitfarms doing about it? They're diving into high-performance computing, baby! They snagged a cool $300 million from Macquarie Group to juice up their HPC project at Panther Creek in Pennsylvania. Smart move to offset those shrinking mining profits.

Strategic Shifts: Selling Yguazu, Buying Stronghold

And they're not stopping there. Bitfarms sold off their Yguazu spot in Paraguay and snapped up Stronghold Digital Mining, bagging two more power campuses in Pennsylvania. They're reshaping their game, and fast.