Bitfarms Ends 2022 with 50% Increase in BTC Mining

Bitfarms (NASDAQ:BITF), a cryptocurrency mining company, has published its latest Bitcoin mining update for December 2022 and the entire year. While the publicly-listed miner produced 50% more cryptocurrencies than it did in 2021, it increased its BTC sales to cover ongoing operating costs and liabilities.

Bitfarms Closes 2022 with Production Increase

According to the press release published on Tuesday, Bitfarms mined 496 BTC in December, compared to 453 mined last month and 363 mined in the same period a year earlier. The newest production number translates to a significant year-over-year increase and visible growth of available computing power.

The available Bitfarm's hash rate has doubled over the year, rising from 2.2 exahashes per second (EH/s) reported in December 2021 to 4.5 EH/s today.

For the entire of 2022, the number of BTC mined reached 5,167, growing 49.6% compared to the 3,453 reported for 2021. This means that the company mined more than 14 BTC daily during the last year. The average for December came in at 16 BTC, the equivalent of $265,600 per day, considering market prices as of 31 December 2022.

"With the 496 BTC mined in December, our total 2022 BTC mined reached 5,167, up 50% over 2021. We averaged 16.0 BTC mined per day during December. In the month, we deployed new miners and underclocked our least cost-efficient miners. This improved their efficiency by 15%, resulting in a reduction of nearly 4 MW of power consumption and representing substantial cost savings," Ben Gagnon, the Chief Mining Officer of Bitfarms, said.

Bitfarms Mining Operations

In December, Bitfarms temporarily suspended Quebec farm operations in support of the local community amid the onslaught of extreme winter, restoring some 4,000 megawatt hours (MWh) of power to the local grids. Such energy curtailments occur every winter and are a normal part of the miner's operations.

However, the company has expanded its operations at two other farms, providing access to additional electrical power and mining potential.

"In December, we energized the remaining portions of The Bunker and Garlock farms, executing our Canadian expansion plan two and one-half months ahead of schedule," Geoff Morphy, the CEO of Bitfarms, said.

"We have positioned ourselves for strategic growth with minimal cash outlay in 2023."

Bitfarms Sees Higher Production with Lower Revenues

Although the publicly-listed miner was able to increase its Bitcoin production significantly, the overall financials seemed to deteriorate in 2022. According to the financial report for the three months that ended 30 September 2022, revenue stood at $33.2 million, falling from $44.8 million reported in the same period a year earlier.

Net loss in the third quarter was $84.8 million after the company earned $23.7 million a year earlier. In the first nine months of 2022, the miner's loss reached $222.2 million. The main reason for the deepening loss is the rapidly falling prices of the major cryptocurrencies. However, the increased hash rate values and higher BTC production partially offset the results and reduced financial stress.

To cover its liabilities and rising costs of conducting daily business, Bitfarms increased the number of Bitcoins it sold. In November, it redistributed 853 BTC, while the number rose to 1,755 BTC. By comparison, only 35 BTC had been sold a year earlier. However, the company managed to repay the loan secured in BTC fully.