Bitfarms reports 34% profit increase thanks to fleet upgrades and expansions

Bitcoin mining company Bitfarms has reported a 34% month-over-month profit increase, driven by increased mining hashrate due to fleet upgrades and expansions. In July, the company’s operations generated 253 BTC, worth approximately $16.2 million at current market prices. In comparison, in June, profits were 189 BTC ($12.1 million).

Fleet upgrades drive revenue growth

The company attributes the increased revenue to its efforts to upgrade and expand its fleet. As of July 31, Bitfarms had an operating capacity of 11.1 exahashes per second (EH/s), which represents a year-over-year increase of 109% and a month-over-month increase of 7%. The company’s average operating EH/s in July was 10.3, up 36% from June.

Following the Bitcoin halving, which halved miner rewards, Bitfarms announced plans to triple its hashrate. The company plans to invest approximately $240 million in upgrading its mining equipment and adding 88,000 additional miners.

Bitcoin halving initially caused a decline in profits

In April, following the Bitcoin halving, Bitfarms reported a 29% year-over-year profit decline and a 6% drop from the previous month. Despite this setback, things now seem to be looking up for the company.

Bitfarms CEO Ben Gagnon stated in the recent earnings report that despite the halving, the company has earned 62% more Bitcoin per month due to the fleet upgrades. Gagnon said, “This speaks volumes to our operational expertise and improved efficiency, and I am confident that we are well positioned to further accelerate our growth and create shareholder value.”

Largest site in Paraguay now fully operational

Gagnon went on to say that the company’s largest site, in Paso Pe, Paraguay, is now fully operational. Construction is also reportedly progressing rapidly in Yguazu, where four warehouses are being built.

The current hashrate is still below the target of 12 EH/s. This is mainly due to overheating issues with a batch of miners. The company is now working with hardware supplier Bitmain to replace the affected machines. The delivery of these machines is expected in August of this year.