Bitfarms Ltd. (Nasdaq/TSX: BITF), a leading vertically integrated Bitcoin data center company, has released its financial and operational performance for the third quarter ended September 30, 2024. The report highlights significant progress in fleet optimization, U.S. expansion, and strategic leadership development—all positioning the company for robust growth ahead of the anticipated 2025 Bitcoin bull cycle.
Strategic Growth and Operational Highlights
Despite challenging market conditions—including record-low hash prices and a 62% year-over-year increase in network difficulty—Bitfarms maintained profitable mining operations and generated consistent free cash flow. The company’s ability to adapt and scale during turbulent periods underscores its resilient business model and operational efficiency.
Hashrate and Efficiency Milestones
- Current hashrate: 11.9 EH/s, up from 10.4 EH/s in Q2 2024.
- Energy efficiency: Achieved an industry-leading 21 watts per terahash (w/TH)—three months ahead of schedule—representing a 40% improvement year-to-date.
- BTC production: Averaged 7.6 BTC per day during Q3, totaling 703 BTC earned for the quarter.
These metrics reflect the success of Bitfarms’ ongoing fleet upgrade program, which deployed 5,400 additional miners across facilities in Canada, the U.S., and Paraguay. This brings the total number of miners deployed in 2024 to approximately 47,900.
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Fleet Modernization and Technological Advancement
A cornerstone of Bitfarms’ 2024 transformation is its aggressive miner upgrade strategy. On November 12, 2024, the company amended its agreement with Bitmain to upgrade the remaining 18,853 T21 miners to the more powerful S21 Pro models, delivering:
- 234 TH/s hashrate
- 15 w/TH energy efficiency
This represents over a 20% improvement in both performance and efficiency compared to the T21 units. The incremental investment of $33.2 million—payable in cash or Bitcoin—demonstrates Bitfarms’ long-term commitment to cost-effective, high-output mining operations.
CFO Jeff Lucas noted:
“While shipping delays and servicing challenges prevented us from reaching our 21 EH/s target by year-end 2024, we remain confident in achieving this milestone in the first half of 2025 through close collaboration with Bitmain.”
U.S. Expansion and Stronghold Acquisition
Bitfarms is undergoing a major geographical shift, with plans to position 66% of its total power capacity in the United States by end-of-2025—up from just 6% today.
This transformation is driven by the pending acquisition of Stronghold Digital Mining, Inc. (Nasdaq: SDIG), a vertically integrated crypto mining firm operating in Pennsylvania. Upon completion, this deal will expand Bitfarms’ total energy portfolio to over 950 MW, with potential for multi-year scaling up to 1.6 GW.
Key developments include:
- Sharon, PA lease finalized: Immediate access to 12 MW, expandable to 98 MW.
- Letter of intent for additional 10 MW site: Bringing total Sharon site capacity to 120 MW.
- Two hosting agreements with Stronghold: Accelerating deployment of 20,000 miners (4.0 EH/s)—to transition into self-mining post-acquisition.
This strategic pivot enhances energy security, diversifies operations, and leverages low-cost, coal refuse-based power sources—a unique advantage in the U.S. market.
Leadership and Governance Reinforcement
To support its accelerated growth, Bitfarms has strengthened both executive leadership and board oversight:
Executive Appointments:
- Ben Gagnon – CEO
- Liam Wilson – COO
- Benoit Gobeil – Chief Infrastructure Officer
- Alex Brammer – SVP of Mining Operations
- Rachel Silverstein – U.S. General Counsel
Board Enhancements:
- Amy Freedman appointed as Independent Director and Lead Director
- Brian Howlett promoted to Independent Chairman
- Nomination of Andrew J. Chang for board expansion vote at November 20 shareholder meeting
These changes improve accountability, scalability, and governance—critical foundations as Bitfarms scales into HPC/AI and next-generation computing.
Financial Performance Overview
| Metric | Q3 2024 | Q2 2024 | Change |
|---|---|---|---|
| Total Revenue | $45M | $41.5M | +8% Q/Q |
| Gross Mining Margin | 38% | 51% | -13 pts |
| Adjusted EBITDA | $6M (14% margin) | $12M (28% margin) | -50% |
| Net Loss | $37M | $27M | +37% |
| BTC Earned | 703 BTC | 614 BTC | +14% |
While gross margins declined due to higher energy costs and increased network difficulty, revenue rose 30% year-over-year, reflecting improved operational throughput and favorable Bitcoin pricing trends.
The net loss included non-cash items such as a $6M gain from warrant revaluation, partially offsetting accelerated depreciation costs tied to legacy miner retirement.
Cost of Production Per BTC
- Direct cost: $36,000/BTC (vs. $30,600 in Q2)
- Total cash cost: $52,400/BTC (vs. $47,300 in Q2)
Increases were driven by rising electricity prices and reduced transaction fee contributions post-Halving.
Liquidity and Treasury Management
As of September 30, 2024:
Total liquidity: $146 million
- $73 million in cash
- 1,147 BTC valued at $73 million (based on $63,300/BTC)
By October 31, BTC holdings grew to 1,188 BTC, worth **$84 million** at $71,000/BTC.
During Q3:
- Sold **461 BTC at avg. $60,600**, generating $28 million
- Additional sales of 194 BTC in October, raising $13 million
- Funds used for capital expenditures and strategic investments
The company also increased its synthetic Bitcoin exposure via call options:
- Synthetic HODL™: Expanded from 208 BTC-equivalent in June to 802 BTC-equivalent in October—a 286% increase
This hedging strategy allows Bitfarms to benefit from upside price movements while preserving on-chain reserves.
Diversification into HPC/AI
Aligning with broader digital infrastructure trends, Bitfarms has initiated a pilot program for High Performance Computing (HPC) and Artificial Intelligence (AI) workloads at two U.S. sites.
Key facts:
- Target capacity: 1–2 MW
- Power and land secured
- Active discussions with AI partners and hardware suppliers
- Aiming for accelerated deployment in 2025
This marks the beginning of a long-term strategy to diversify beyond Bitcoin mining and maximize utilization of its low-cost power assets.
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Frequently Asked Questions (FAQ)
What is Bitfarms’ current hashrate and efficiency?
As of November 2024, Bitfarms operates at 11.9 EH/s with an energy efficiency of 21 w/TH, among the best in the industry.
Why did gross mining margin decline in Q3?
Margins dropped from 51% to 38% due to higher electricity costs, increased network difficulty after the April Halving, and lower transaction fees—all common headwinds across the mining sector.
When will Bitfarms reach 21 EH/s?
Management expects to achieve the 21 EH/s target in the first half of 2025, pending resolution of miner shipment and servicing timelines with Bitmain.
What is Synthetic HODL™?
Synthetic HODL™ refers to financial instruments that provide Bitcoin price exposure without requiring direct ownership. It allows Bitfarms to hedge risk and capture upside while maintaining liquidity.
How does the Stronghold acquisition benefit Bitfarms?
The acquisition expands Bitfarms’ U.S. footprint dramatically—from 6% to 66% of total power capacity—and adds scalable infrastructure with access to low-cost coal refuse energy.
Is Bitfarms expanding beyond Bitcoin mining?
Yes. The company has launched a pilot for HPC/AI computing at two U.S. sites, signaling a strategic move toward diversified digital infrastructure services.
Core Keywords Integrated:
Bitcoin mining, hashrate growth, mining efficiency (w/TH), fleet upgrade, Stronghold acquisition, HPC/AI expansion, synthetic HODL, U.S. expansion, energy efficiency, crypto infrastructure