Revenue Rises, Margins Fall in Post-Halving Environment
Bitfarms reported robust top-line growth in Q1 2025 with $67 million in revenue—up 33% compared to Q1 2024. Though the growth was robust, it masked a precipitous decline in profitability as the entire impact of the April 2024 Bitcoin halving began to take hold.
The company’s gross mining margin declined drastically to 43%, down from 63% last year. The 20-percentage-point drop was driven by increasing cost of production, echoing the broader economic tightening facing much of the Bitcoin mining industry.
Bitcoin Production Costs Increase
Bitfarms reported that its all-in cash production cost to mine a single bitcoin increased to $72,300 in Q1 2025, up from $27,900 in the same quarter last year. The standalone cost of production increased to $47,800—virtually double last year’s $18,400.
These numbers are reflective of higher energy and infrastructure costs required to maintain mining operations in tact in a post-halving scenario with block rewards having been reduced, profitability increasingly becoming an pipe dream.
Efficiency Up, But Not Yet There
In spite of these challenges, Bitfarms achieved some impressive operational progress. Its hashrate of 19.5 EH/s at the close of March 2025 was almost three times higher than the 6.5 EH/s of a year ago. Efficiency of mining also declined significantly from 34 watts per terahash to 19 watts per terahash—a 44% improvement.
Operating capability greater than doubled year-on-year, rising from 240 megawatts to 461 megawatts. Those advances, however, weren’t quite sufficient to fully make up for the surge in bitcoin production costs and halving’s revenue compression.
Halving’s Effect Felt Throughout Mining Industry
Bitfarms is not alone. Hut 8 Corp., one of the biggest crypto mining companies, experienced over 50% revenue decline in Q1 2025 and incurred a steep net loss. CEO Asher Genoot confirmed that the impacts of the halving are finally being fully experienced across the entire industry, which forces companies to revisit their cost bases and business models.
Pivot to HPC and Strategic Moves
To navigate the evolving climate, Bitfarms is accelerating its expansion into high-performance computing (HPC). During the quarter, it secured a $300 million private debt facility from a Macquarie Group unit to fund the build-out of HPC operations at the Panther Creek site in Pennsylvania.
The company also took strategic steps to expand and streamline. It sold off its Paraguayan Yguazu plant and acquired Stronghold Digital Mining, adding two power campuses in Pennsylvania. These deals are part of Bitfarms’ broader drive to build a more diversified and resilient infrastructure beyond typical Bitcoin mining.
As profitability pressures mount post-halving, Bitfarms’ shift toward HPC and infrastructure expansion reflects the adaptive strategies many miners must now pursue to survive and grow in a more demanding environment.
