Canadian Bitcoin mining company Bitfarms has reported a 400% increase in revenue year over year to $36.7 million in its second quarterly report ending June 30. The rise in revenue came amid recent tightening regulations around Bitcoin mining in China and since then, many North American miners have captured the demand for the popular business.
The quarterly report also revealed an operating loss of $2.1 million and a net loss of $3.7 million for the given period. The company’s stock price has since tripled compared to the early year figures.
Bitfarms mined over 759 BTC in the second quarter with an average mining cost per Bitcoin of $9,000. The average cost rose from $5,075 to $9,000 since last year, most likely due to the Bitcoin halving in May 2020.
As of June 30, the company owned 1293 Bitcoins with its total assets valued at $45.3 million. Emiliano Grodzki, CEO of Bitfarms said in a statement:
“The second quarter of 2021 was a pivotal one for our company. From the beginning of 2021 through the end of 2022, we expect to have increased our capacity eightfold and have expanded our geographic resources throughout North and South America while continuing to pursue opportunities elsewhere.”
The Chinese government has clamped down on cryptocurrency mining in its country which led to a significant drop in hashrate. As miners in China sought to transfer their operations overseas, many North American mining companies expanded their production and profited off from the crackdown.
Talking about China’s ban on the crypto market, Grodzki added:
“Further, while the price of bitcoin continues to fluctuate, the current market is favorable to our global operation with the ban on crypto mining in China and the resultant shutdown of almost one-half of the network hashrate, allowing us to increase our market share to just above 1.5% from less than 1.0% at the beginning of the year.”