The Canada based mining firm corporation announced its consolidated results for the first half of the year 2018. Bitfarms is an eco-friendly blockchain providing mining service to individuals using renewable sources of energy. The important developments that took place in the company were highlighted in the report. According to the report, a total of 8,256 crypto coins, 1,923 of which were Bitcoins, 2,222 in Bitcoin Cash, 3,324 in Litecoin, 567 Ethereum and 220 in Dash were mined through the mining facilities of Bitfarm. The best thing about the mining facilities is that all of them are powered through renewable sources of energy.
The report also mentioned an amalgamated revenue of $22.3 million, gross profit of $12.5 million (56% gross profit margin), operating income of $6.8 million (31% operating margin), EBITDA1 of $12.6M (57% EBITDA margin) and net income of $4.9 million. Additionally the mining operations segment revenue of $21.1 million, gross profit of $12.3 million (58% gross profit margin), gross mining profit of $17 million (80% gross mining margin), operating income of $8.1 million (38% operating margin), EBITDA of $13.9M (66% EBITDA margin) and net income of $6.2 million was reported as well.
Bitfarm, which was previously blockchain farm, also formed a merger with Backbone Hosting Solutions Inc. for the acquisition of all of its issued and outstanding shares along with the complete acquisition of Volta as well, which is an electrical services company in Quebec. Backbone also started building mining farms in Sherbrook, Quebec which would take up to 2 years to complete as well as required a hefty funding of $250 million. The computing power due to this new farm is estimated to increase by 4 times and the number of workers would apparently reach 300. Hydro-Sherbrook will be responsible to power the mining rigs using hydroelectric energy. The company has agreed to provide 98 megawatts of power.
The company has also gone through a few infrastructural changes. The former investment banker who was employed by some of the largest financial institutions in US and Canada, co-founder of backbone and previously CEO of backbone, Mr. Wes Fulford, was appointed as the Chief Executive Operations. CEO Wes Fulford commented,
We are very proud of the tremendous progress made in the first half of Fiscal 2018, Through disciplined execution and responsible financial management, our team has successfully completed several key initiatives that align with our strategic objectives of securing low-cost, clean energy, growing mining infrastructure and operations, vertically integrating to minimize dependence on costly third-party service providers and exploring exciting new business verticals within blockchain technology. Contrary to industry trends, we achieved strong revenues and robust margins throughout the period. Our impressive cost structure, enabled by long-term, affordable electricity and real-estate leasing costs, allows us to maintain profitability during periods of volatile cryptocurrency pricing. We are committed to executing our vision as we strengthen Bitfarms’ position as a leading player within the global blockchain industry.
The report also mentioned that the construction of leasehold improvements and the installation of new electrical infrastructure in the facility at Magog has been completed successfully. This brand new facility has a power of 10MW. The development phase has been concluded and the site is now ready for executing the cryptocurrency mining operations. Additionally, the mining facility at St. Hyacinth, Quebec has been equipped with more than 6,500 ASIC mining chips. This facility has shown overall improvement in performance by offering an increased hash rate. The facility can now produce 91 PH/s of hash rate, which is 90% more as compared to what it was last year.
Looking at the financial result produced by Bitfarm, it can be established that the first half of this year has indeed been a fortunate one for the mining corporations. Evidently, Bitfarm has set a significant precedent for the cryptomining organizations to utilize green power in order to mine crypto rather than resorting to power sources that are damaging the environment.