Bitcoin mining firm Bitfarms’ Q2 revenue rose by 398% as it increases its market share rises to more than 1.5%

Bitfarms announced that its second-quarter revenues increased by almost 400 percent compared to the same period last year as it increased its market share to above 2 percent. The Canadian Bitcoin mining firm attributes the surge to the crackdown of crypto mining in China.

Bitcoin mining firm Bitfarms reported revenues of $36.7 million for the second quarter in 2021. This is a $29.3 million or a 398 percent increase compared to the revenues generated by the Canada-based firm for the same period last year.

The company also reported a gross mining profit of $28.1 million for Q2 2021, up from the $2.5 million it posted in Q 2020. Its gross mining margin also rose to 79 percent in the second quarter this year, a massive increase from last year’s 36 percent. Bitfarms said that both increases are due to the higher average BTC prices this year compared to the same period last year.

The company mined 759 Bitcoin for the period at an average cost of around $9,000 per BTC. As of June 30, 2021, Bitfarms held $1,293 Bitcoin valued at around $45.3 million at $35,057 per coin.

China’s ban on crypto mining has helped Bitfarms significantly increase its market share. “While the price of Bitcoin continues to fluctuate, the current market is favorable to our global operation with the ban on crypto-mining in China and the resultant shutdown of almost one-half of the network hash rate, allowing us to increase our market share to just above 1.5% from less than 1.0% at the beginning of the year,” Bitfarms CEO Emiliano Grodzki said.

The closure of Chinese mining firms also helped Bitcoin acquire cheaper mining equipment as some operated opted to sell their hardware. “In addition, the China ban enables us to procure miners more competitively than we have in the past and to leverage our infrastructure development and operating capabilities to further support our ambitious plans for expansion,” he added. “We are very excited about the months ahead.”

The CEO also revealed the company’s goal of becoming a global leader in the Bitcoin mining industry. “From the beginning of 2021 through the end of 2022, we expect to have increased our capacity eight-fold and have expanded our geographic resources throughout North and South America while continuing to pursue opportunities elsewhere,” he added.

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