Blockchain infrastructure company Bitfarms generated $28.4 million in revenue during Q1 2021, an increase of 209% from last year.
Organic growth, an increased average hash rate of 39%, and a significant increase in bitcoin’s (BTC) price drove this revenue increase. This was helped by 4,500 miners which were received and installed during the quarter, adding approximately 369 PH/s. While bitcoin was approximately $8,300 during Q1 2020, by the end of last quarter it was around $45,000.
Meanwhile, the gross mining profit of the company was $22.3 million and adjusted EBITDA was $19.7 million. However, the company experienced a negative EBITDA of $3 million, due mainly to non-recurring, non-cash financial expenses.
During the first quarter, Bitfarms mined 598 bitcoins, with an average cost of approximately $8,400 per BTC. Additionally, the company retained 548 BTC worth approximately $32.4 million as of March 31, 2021.
Ultimately, Bitfarms ended the quarter with approximately $53 million in cash and total liquidity. However, defined as cash and bitcoin holdings, this rises to approximately $85.5 million.
Listing on the Nasdaq Global Market
The release announcing the financial results also included Bitfarms other highlights over the past quarter. For instance, in January and February 2021, the company closed three private placements with U.S. institutional investors, raising CAD$80 million (about $66 million).
According to Mauro Ferrara, Interim CFO and Corporate Secretary, this enabled several things for Bitfarms. First, the company was able to pay back the entirety of its outstanding debt with Dominion Capital. Next, Bitfarms started executing its infrastructure plans at a number of locations, including Quebec and South America. Finally, the company could also put into motion its bitcoin retention program, and order an additional 48,000 miners.
“In addition to reporting an outstanding operational and financial first quarter, we are proud to have been approved for listing on the Nasdaq Global Market tier and await final clearance to begin trading,” he Bitfarms CEO Emiliano Grodzki.