Canada-based Bitfarms has doubled down on equity financing, raising $31 million through its at-the-market offering program in the last quarter, according to the company’s earnings report released on Tuesday.
This Q3 equity financing comes on top of the $22 million and $16 million raised during Q2 and Q1, respectively. Bitfarms has also reduced its outstanding loans and further deleveraged its financial position.
During the third quarter, the company liquidated 1,018 BTC for $28 million. A portion of these proceeds was used to repay the NYDIG miner financing loans, resulting in a reduction of Bitfarms’ outstanding equipment-related debt to $10 million as of September 30.
Bitfarms, like some other public mining operations, faced a decline in total Q3 bitcoin production compared to the previous quarter, driven by increased competition within the network. Despite bitcoin’s average prices remaining at $28,000 during both quarters, the company reported a 7% decrease in mining revenue, amounting to $32.8 million.
This decrease in production was also reflected in the rise of Bitfarms’ all-in mining cost, as illustrated in the chart below. The cost of bitcoin production encompasses energy costs, site maintenance, electrical components, and payroll for on-site staff. Corporate overhead accounts for other cash-based general expenses.
With that being said, Bitfarms has executed several strategies to increase its fleet efficiency in a bid to reduce the cost of bitcoin production as much as it can ahead of the halving.
The company said it fully utilized a $19 million credit with MicroBT to purchase nine WhatsMiner hydro containers with a total capacity of 20 MW and 2,000 M53S+ hydro miners. In addition to importing and installing M50 and S19j Pro miners, Bitfarms said it also plugged in 2,900 units of S19j Pro+ to replace older generations of equipment.