Bitfarms has been in the news quite a lot in the recent past. The crypto mining company released its financial results just two days ago, revealing that its consolidated revenue for the year 2019 stood at $33.8 million. Its gross profit stood at $10.9 million, a 32 percent gross profit margin. However, it registered a net loss of $18.2 million.
In a statement to CoinGeek, Bitfarms revealed that it was the huge decrease in the value of the miners that had the biggest impact. Bahador Zabihiyan, the firm’s director of public relations clarified:
“To be clear, for 2018, we are still profitable on a gross mining and gross profit basis. Despite the decline in pricing, it’s important to note that we are still profitable. The $18.5 million loss is due mostly to the value of miners. It has depreciated significantly as the price of bitcoin has declined over the past 12-18 month. In Q4 2017, S9s were around 2000$-3000$ each and today they are around 200$ each.”
The company mined 3,252 Bitcoin Core (BTC), 6234 Litecoin, 2,577 Bitcoin Cash ABC, 964 Ethereum and 611 Dash in 2018.
Announcing the financial results, Bitfarms had earlier also attributed the loss to the increase in mining difficulty. The firm’s CFO, John Rims stated:
“2018 was a volatile year for the cryptocurrency industry and crypto miners. From the beginning of 2018 to December 31st, the price of Bitcoin decreased by 73% while network difficulty increased by 288% to its peak in October 2018.”
However, the most misinterpreted information had been about Bitfarms’ decision to migrate its listing to Canada. The company currently lists on the Tel Aviv Stock Exchange (TASE) in Israel. Some local media reports had indicated that the company was being delisted from the exchange after registering the 2018 loss. This was after the company revealed that it had filed a preliminary prospectus with the Ontario Securities Commission.
Zabihiyan told us that nothing could be further from the truth. Bitfarms’ listing with TASE is as intact as it has been since it first listed. While it does plan on migrating its listing to Canada, it wasn’t because of a delisting by TASE. He explained:
“We have publicly announced a proposed arrangement with a newly created Canadian company which, if effected, would see Bitfarms migrate its Israel listing to Canada. It’s subject to shareholder, court and regulatory approvals. If the proposed arrangement is not successful, Bitfarms will maintain its status as a TASE publicly traded company. We are not being delisted.”
Zabihiyan also revealed some of the major strides the company had made. They include setting up its own microelectronic lab in which all its S9 miners are repaired as well as building a new 30 MW mining facility. Bitfarms also signed a research partnership with École de technologie supérieur (ETS), an engineering school based in Montreal.
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