Bitcoin

Impact

April

Million

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitfarms’ mining revenue fell by 45% to $7 million in the first full month following the Bitcoin halving.</li> 
 <li>The company rejected a nearly $1 billion acquisition proposal from Riot Platforms.</li> 
</ul>  
<p>Bitfarms, a prominent Bitcoin miner, recently published its monthly production figures. These numbers underscore the impact of the Bitcoin halving on the firm’s profitability and hint at potential industry consolidation.</p> 
<p>In May, Bitfarms mined 156 BTC, marking a 42% decrease from the previous month and a 66% drop year over year. The company sold 136 BTC, generating a total income of $8.9 million. This figure is significantly lower than the $16.1 million made in April as part of the company’s standard treasury management process.</p> 
<h2 id="bitcoin-halving-impact">Bitcoin Halving Impact</h2> 
<p>The company’s total BTC treasury swelled to 850 BTC, equivalent to $57.2 million based on the BTC price of $67,300 on May 31. The amount of BTC earned per average exahash per second of computational power fell by 45% from the previous month, as May was the first full month following the Bitcoin halving.</p> 
<p>Bitcoin halvings are designed to happen automatically approximately every four years. After a halving event, miners get 50% fewer bitcoins as a reward for each transaction block they mine and add to the blockchain. However, they continue to receive additional transaction fee rewards for each block mined.</p> 
<h2 id="company-updates">Company Updates</h2> 
<p>Ben Gagnon, Bitfarms’ Chief Mining Officer, said, “Our fleet upgrade is progressing at a rapid pace. Year-to-date we have received 25,600 miners and installed 23,600 miners, with the remaining 16,200 miners in route. Together, these miners provide sufficient hashing power to achieve 12 EH/s in June.”</p> 
<p>Bitfarms recently declined a nearly $1 billion acquisition offer from Riot Platforms, another Bitcoin mining company. Riot Platforms proposed to purchase all of Bitfarms’ outstanding shares at a 24% premium on the one-month weighted average per share. The total equity value of the deal would have been $950 million. Riot has since bought a 9.25% stake in Bitfarms, becoming the largest shareholder in the company.</p> 
<p>Bitfarms, established in 2017, operates 12 <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> mining facilities and is developing another in four countries: Argentina, Canada, Paraguay, and the United States.</p>

Bitcoin Halving Impact: Bitfarms Suffers 45% Decline in Mining Revenue to $7 Million

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