Bitfarms’s mining margins squeezed despite 33% revenue jump as post-halving costs climb

Bitfarms posted strong top-line growth in the first quarter of this year, but rising production costs following the April 2024 Bitcoin halving drove a sharp decline in mining margins.

Bitfarms reported its financial results for the first quarter of 2025, posting revenue of $67 million, a 33% increase year-over-year. Despite the revenue growth, the company’s gross mining margin declined to 43%, down from 63% in the same period in 2024, reflecting a 20-point drop due to rising production costs.

The total cash cost to produce one bitcoin rose sharply to $72,300, compared to $27,900 a year earlier. Direct production cost increased to $47,800 from $18,400, highlighting the pressure on margins as mining becomes more expensive after the April 2024 Bitcoin halving.

Operationally, the company reported a hashrate of 19.5 EH/s as of March 31, 2025, up from 6.5 EH/s a year earlier. Mining efficiency improved to 19 watts per terahash, a 44% improvement from 34 watts per terahash in Q1 2024. Bitfarms’ operating capacity rose to 461 megawatts, compared to 240 megawatts in the same period last year. However, efficiency gains weren’t enough to offset the broader rise in total production costs.

Declining margins are becoming the norm for Bitcoin miners following the April 2024 Bitcoin halving. Hut 8 Corp. also reported a steep revenue drop of over 50% in the first quarter of this year and swung to a significant loss, which CEO Asher Genoot attributed to the full impact of the halving now taking effect.

To offset reduced mining profitability, mining firms are moving into high-performance computing, and Bitfarms is following suit. During the quarter, the company secured a $300 million private debt facility from a division of Macquarie Group to fund the buildout of its HPC project at the Panther Creek site in Pennsylvania.

Other strategic developments in the quarter included the sale of the Yguazu facility in Paraguay and the acquisition of Stronghold Digital Mining, adding two power campuses in Pennsylvania.