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Canadian mining company Bitfarms reported a drop in net income to $5 million in Q1 2022. In this regard, the management of the firm decided to reduce plans for business development.
According to Bitfarms’ financial reports, the company’s net income for Q1 2022 fell to $5 million, a 50 percent drop from its Q4 earnings last year. Therefore, Bitfarms’ management decided to scale back its business development for the rest of the year. Total revenue fell 33% from last quarter’s results to $40 million, and the mining margin dropped from 84% to 76%.
As Bitfarms president and COO Jeff Murphy pointed out, the market is currently experiencing a difficult supply situation for mining equipment, so the company’s development will be slower than planned. However, he stressed that Bitfarm remains profitable “despite the bitcoin price drop.”
Bitfarms’ total hardware hash rate was originally scheduled to reach 7.2 Eh/s by the end of the year. Now we are talking about reaching 6.0 Eh/s. At the moment, the figure is 3.4 Eh/s – about 1.5% of the total hashrate of the first cryptocurrency network. As part of the business development the equipment will be installed at a new mining farm in Argentina.
The company now operates nine mining farms, with six at the beginning of the year. The current capacity of the equipment is 137 MW, but an additional 92 MW is scheduled to be operational by the end of the year. As of March 31, Bitfarms had 5,244 BTC stored on its wallets, of which 961 BTC were mined in Q1. Earlier in the year, the company reported buying 1,000 BTC for $43.2 million.
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