Bitfarms (NASDAQ:BITF) shares are rising around 2% in Monday premarket trading, as Q1 earnings reflected EBITDA growth despite an ongoing slump in cryptocurrencies such as bitcoin (BTC-USD).
EPS of $0.02 as of March 31 fell short of the average analyst estimate of $0.04 but improved from a loss of $0.06 in the period ended March 31, 2021. Revenue of $40.33M topped the consensus of $39.60M and jumped from $28.4M in Q1 a year ago.
As for Bitfarms’ (BITF) new Sherbrooke location, which will eventually replace its de la Pointe mining facility, is expected to be operational at some point in 2022, said President and Chief Operating Officer Geoff Morphy. He said his company anticipates surpassing 4.0 EH/s by June 30.
In addition, “we are in advanced discussions for additional production facilities, all of which would utilize sustainably priced hydropower,” Morphy said.
Meanwhile, adjusted EBITDA of $32.3M in Q1 surged from $19.7M in Q1 of last year.
On the other hand, gross profit of $17.04M in Q1 slid from $19.3M in Q1 2021. Likewise, Q1 operating income of $6.9M dropped from $16.5M in the year-ago period. Operating margin of 17% in Q1 vs. 58% in Q1 2021.
Gross mining profit was $30.1M as of March 31, compared with $22.3M as of March 31, 2021. Still, gross mining margin of 76% in Q1 slipped from 80% in Q1 a year ago, driven by a cyclical downturn in bitcoin (BTC-USD)
Previously, (May 2) Bitfarms reported 15% growth in average daily mined BTC in April.