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Bitfarms Revenue Drops Sharply in First Full Month After Bitcoin Halving

The fourth Bitcoin halving event has dealt a significant blow to the performance of this leading Bitcoin mining company Bitfarms.

In its May 2024 operational and production update, Bitcoin mining company Bitfarms reported earning 156 BTC for the month. This marks a 42% decrease from April and a 66% drop compared to the same period last year. Out of the Bitcoin earned, they sold 136 BTC, generating $8.9 million (down from $16.1 million in April).

Bitfarms’ total Bitcoin holdings in their treasury increased to 850 BTC, equivalent to $57.2 million based on the Bitcoin price of $67,300 recorded on May 31.

In the latest update, the company also reported an average mining capacity of 24.5 BTC/EH/s (24.5 BTC mined per exahash of computing power per second), down 45% from the previous month.

Source: Bitfarms
Source: Bitfarms

This is explained because May is the first month after the 4th Bitcoin halving event taking place on April 20, 2024. The company earns an average of 5 BTC per day, or about $340,000 based on a BTC price of $67,300 on May 31.

Last week, Bitfarms reportedly turned down a nearly $1 billion buyout proposal from Riot Platforms, another leading Bitcoin mining giant.

Riot Platforms offered to buy all outstanding shares of Bitfarms at $2.30 per share, a 24% premium over the average price per share over the past month. The deal would have totaled $950 million in equity value. Riot has already acquired a 9.25% stake in Bitfarms, making it the company’s largest shareholder.

Juan Leon, Senior Crypto Analyst at Bitwise, noted that merging the operations of the two companies would result in a combined self-mining capacity of 52 EH/s across 15 locations worldwide by the end of 2024.

On May 13, Bitfarms fired its former CEO, Geoffrey Morphy, after he filed a lawsuit against the company. Morphy’s lawsuit, valued at $27 million according to The Block, alleges contract violations, wrongful termination of employees, and other serious damages.

Following the news, Bitfarms shares traded 4% higher at $2.33 per share, as reported by Yahoo Finance. However, the stock has seen an 18% decline since the start of 2024.

Founded in 2017, Bitfarms currently operates 12 Bitcoin mining facilities with an additional one under development across four countries: Argentina, Canada, Paraguay, and the United States.

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