Bitfarms reported $2.1 million in net financial income for the first quarter of 2025, a sharp decline from $11.4 million in the same period a year earlier, due to reduced gains on derivatives and warrant revaluations.Â
Bitfarms said in its latest Management’s Discussion and Analysis of the first quarter performance that the lower financial income contributed to a wider net loss of $35.9 million, compared to a $6 million net loss in the first quarter of 2024.
Gains from revaluating warrant liabilities tied to the company’s 2023 private placement decreased $3.4 million, primarily driving the $9.3 million year-over-year drop in financial income. The fair value of these liabilities fell at a slower rate during the quarter than similar adjustments recorded in the previous year.Â
Additionally, Bitfarms recorded a $6.2 million swing in derivative-related performance, including a $2.2 million net loss from its Bitcoin (BTC) Redemption Option and a $1.5 million loss from the Bitcoin One Program.Â
The latter comprised a $6.3 million unrealized loss on open positions, partially offset by $4.8 million in realized gains. In the first quarter of 2024, the company had booked a $2.5 million gain from unrealized appreciation in Synthetic HODL derivative contracts.
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.Â
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.Â
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.Â
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.Â
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.
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