Bitcoin miner Bitfarms posted a net loss of $142 million in the second quarter, down from a net income of $5 million last quarter.
The company also increased its hash rate by 33% during the quarter to 3.6 exahash per second (EH/s), after starting production at one location and completing the second phase of development at another — both in Canada.
Despite the significant drop in bitcoin value during the quarter, Bitfarms reported a 5% increase in revenue to $42 million. President and COO Geoff Morphy said that the "strong" second quarter production (with 1,257 BTC mined) "completely offset weaker bitcoin prices."
He said that Bitfams is well positioned to take advantage of current market conditions, as potential opportunities for consolidation come up.
"Entering the second half of 2022, we are focused on executing our growth and maximizing our profitability," Morphy said in a press statement."Overall, we are building on this strong foundation for long-term success and expanding our existing geographically diversified operations."
Construction is ongoing at the company's two 50-megawatt warehouses in Rio Cuarto, Argentina.
Bitfarms pushed the delivery and payment of some of its mining equipment to 2023 in order for it to better match its schedule for completing the required infrastructure. The company is still on target to reach 6.0 EH/s by the end of the year. That number was adjusted last quarter from 7.2 EH/s, as Bitfarms announced it was scaling back expansion plans.
"We optimized resources, deferring $39 million in capex spending from the fourth quarter of 2022 into 2023," said CFO Jeff Lucas.
Bitfarms sold 3,357 BTC during the second quarter, generating $69 million and using funds to pay a bitcoin-backed loan from Galaxy down to $38 million. Last quarter it also closed a $37 million new equipment financing agreement.
“By deleveraging our balance sheet and increasing financial flexibility, we are better positioned to execute our growth initiatives to drive market share gains and increased production,” Lucas said.
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