Bitfarms bleeds $35.9M as mining revenue crashes 82%—another ’growth story’ meets harsh reality
Bitcoin miner Bitfarms just posted a net loss of $35.9 million for Q1 2025—a brutal 82% YoY income drop that even crypto true believers can’t spin. Mining rewards? Evaporating. Operational costs? Stubbornly high. Shareholders? Probably Googling ’how to short Canadian stocks.’
The company blames ’market conditions’ (read: Bitcoin’s refusal to moon on command) and ’regulatory headwinds’ (translation: governments still hate energy-guzzling proof-of-work). Meanwhile, their HODL strategy looks increasingly like a gamble—$10M worth of BTC sold last quarter barely dented the losses.
Silver lining? They’re expanding facilities in Paraguay. Because when your business model is burning electricity to guess numbers, the logical next step is doubling down in a country with... questionable grid stability. Crypto winter just got frostier.
Revenue climbs on hashrate growth
Total revenue rose 33% year-over-year to $66.8 million, up from $50.3 million in the first quarter of 2024, driven by increased average bitcoin prices and higher hash rate deployment.
Bitfarms expanded its average operational hashrate to 13.5 exahashes per second (EH/s) from 5.9 EH/s, supported by miner upgrades and the acquisition of Stronghold Digital Mining, which added new capacity and contributed 1.4 EH/s to the total.
However, the company mined fewer BTC in the quarter, 693 BTC compared to 943 BTC a year earlier. This reflects reduced block rewards following the April 2024 halving and a 44% increase in network difficulty.
The average total cash cost per mined BTC ROSE to $72,300, while average sale prices reached $87,100. Gross mining profit declined 11% to $28 million, and adjusted EBITDA dropped 35% to $15.1 million.
Infrastructure rebalanced toward North America
Bitfarms ended the quarter with 19.5 EH/s in hash rate under management and 461 megawatts (MW) of energized capacity, approximately 70% of which is now in North America.
Integrating Stronghold’s operations also brought new energy generation capabilities to the company’s portfolio, including refuse-fueled power assets in Pennsylvania.
Operational costs increased with the expansion. Energy expenses rose 31% to $25.4 million, while hosting and infrastructure spending climbed due to the timing of the Stronghold acquisition and development work at new sites in the US and Canada.
Bitfarms sold 428 BTC for $37.3 million during the quarter and held 1,492 BTC valued at $123.2 million as of March 31. Total comprehensive loss for the quarter reached $49.3 million, compared to income of $11.5 million in Q1 2024.
Argentina operations halted
The company’s Rio Cuarto mining site in Argentina, representing 13% of Bitfarms’ total energized capacity as of March 31, was taken offline on May 12 after the local power supplier halted electricity delivery indefinitely.
With no assurance of when service may resume, Bitfarms is evaluating whether to maintain regional operations.
As a result, the company recorded a $15.9 million impairment loss on the Argentina cash-generating unit, citing worsening macroeconomic conditions and higher energy costs, particularly for natural gas.
The financial impairments from the disruption will be included in the firm’s second quarter earnings report.
