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.
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.
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.
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.
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.
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.
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.
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.
