CoinDesk Report:
Bitfarms, a major player in the cryptocurrency mining industry, mined 189 Bitcoins in June. The mining firm currently holds over 900 BTC.
A recent profitability report released by Bitfarms highlights significant improvement in its financial performance for June.
This positive development occurred amidst major challenges, notably a takeover attempt, which the company successfully fended off.
Bitfarms Boosts Revenue
According to a press release on July 1, Bitfarms, a prominent participant in cryptocurrency mining, reported an increase in Bitcoin production for June.
The company successfully mined 189 BTC in June, a significant increase from the 156 BTC mined in May. As part of its June earnings, the company sold 134 BTC for approximately $8.8 million.
Currently, the company holds 905 Bitcoins in its treasury, valued at approximately $57 million.
Despite the positive June performance, year-over-year comparisons provided by Bitfarms show a significant decline in productivity. By this time in 2023, the company had accumulated 2,520 BTC. However, its year-to-date earnings for 2024 have decreased to 1,557 BTC, a decline of over 50%.
The decrease in Bitcoin earnings is not solely due to changes in productivity; a significant factor is the reduction in BTC miner rewards, affecting the overall profitability of many in the industry.
How Bitfarms Escaped Hostile Takeover
In June, the cryptocurrency mining industry saw significant corporate activity involving Riot Platforms and Bitfarms. Riot Platforms made a substantial acquisition offer, proposing to acquire Bitfarms for $950 million.
Despite the considerable bid, the acquisition attempt did not succeed entirely.
However, Riot acquired a 14.9% stake in Bitfarms. Efforts by Riot to increase its stake to 15% or more were thwarted, resulting in slightly less influence than more controlling shares.
During the same period, Riot Platforms also attempted to increase its influence within Bitfarms by replacing three members of its board.
This move was part of Riot’s broader strategy aimed at exerting more direct control over Bitfarms. However, these efforts met resistance and ultimately failed.
In response to these aggressive moves by Riot, Bitfarms took strategic defensive measures by adding a new member to its board.
This action may aim to strengthen its governance and prevent further takeover attempts.
Decline in Miner Income Continues
According to Glassnode, AMBCrypto’s analysis of Bitcoin miner income indicates a continuous decline since the Bitcoin halving event. This anticipated reduction halves the returns on mining new Bitcoin blocks.
This event has had far-reaching economic implications for Bitcoin mining.
Prior to the halving, daily revenues for mining operations hovered between 900 to 1000 BTC. Post-halving, this figure has significantly dropped to around 400-500 BTC.
Read more about Bitcoin [BTC] Price Predictions 2024-25
As of the time of writing, daily revenue stands at approximately 456 BTC.
Bitfarms’ recent financial disclosures suggest that the reduced income stream from mining activities may impact miners across the entire industry.