Bitcoin Miner Bitfarms Lowers Hashrate Outlook to 6 EH/s This Year

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Canadian bitcoin miner Bitfarms (BITF) lowered its 2022 hashrate guidance to 6 exashash per second (EH/s) from 7.2 EH/s previously, citing adjustments to its ongoing expansion projects.

• The company’s existing infrastructure construction contracts are projected to provide capacity for 6 EH/s of miners by year-end 2022, reflecting adjustments to its Argentina construction plan and expansion opportunities in Canada and Paraguay, the miner said in a statement.

• Previously, the miner said its existing miner orders and contracted infrastructure expansion should allow a hashrate of about 7.2 EH/s, with potential to expand to 8 EH/s by year end.

• However, Bitfarms is still evaluating opportunities to reach the 8 EH/s expansion goal by 2022, according to the statement.

• “Our updated development activities in Argentina, Washington, and Quebec continue on track in support of our 2022 quarterly EH/s goals,” said President and Chief Operating Officer Geoff Morphy. “Our business development for 2022 and into 2023 are focused on a broad portfolio of opportunities, with a diversified mix in various regions where we are currently operating as well as new geographies,” he added.

• The miner’s first-quarter revenue was $40 million which was up 40% from the previous year’s quarter but was down about 33% from the previous quarter due to a decline in the market price of bitcoin in Q1.

• “We have grown faster than the BTC network, as our hashrate at quarter end was 2.7 Exahash per second (EH/s), up 22% from December 31, 2021,” Morphy said in the statement. “As of today, our hashrate is 3.4 EH/s, representing about 1.5% market share,” he noted.

• The shares of the miners were down about 1.5% in early trading on Monday, while the price of bitcoin hovered around $30,000, down slightly over the last 24 hours. Bitfarms stock has fallen about 60% this year, in line with most publicly traded crypto miners.