Bitfarms .(US:BITF)2024-05-17 13:17Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $50 million, representing a 67% increase year-over-year and a 9% increase from Q4 2023 [42][56] - Adjusted EBITDA increased by 50% to $21 million compared to Q4 2023, with a cash profitability per Bitcoin of $22,700, nearly double the previous quarter's $11,200 [67] - The company held cash of $66 million and Bitcoin valued at $58 million, totaling $124 million in liquidity, up from $118 million at the end of 2023 [14] Business Line Data and Key Metrics Changes - The company mined 943 Bitcoin in Q1 2024, down from 1,236 Bitcoin in the prior quarter, primarily due to a 21% increase in average network difficulty [56] - Gross mining profit was $29 million, or 59% of mining revenue, compared to $23 million or 52% in the previous quarter [56] Market Data and Key Metrics Changes - The average Bitcoin price increased by 44% in Q1 2024 compared to Q4 2023, contributing to revenue growth [56] - The company is on track to achieve a hash rate of 21 exahash per second by the end of 2024, a 223% increase from the current level [30][45] Company Strategy and Development Direction - The company is focused on a transformative fleet upgrade, aiming for significant improvements in energy efficiency and hash rate growth [30][41] - The strategic plan includes expanding operations in Paraguay, leveraging low-cost hydropower, and enhancing energy efficiency [52][60] - The company emphasizes a vertically integrated approach to Bitcoin mining, aiming to maximize returns and shareholder value [31][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets despite the recent CEO transition, stating that operational plans remain unaffected [23][28] - The anticipated tax refund of $24 million will support growth initiatives, further strengthening the company's financial position [42][66] - Management highlighted the importance of timing in miner investments, noting that past purchases during favorable market conditions yielded high returns [43][44] Other Important Information - The company is debt-free as of March 31, 2024, and has sufficient liquidity to fund all necessary miners to reach its hash rate target [16][55] - The company is exploring expansion opportunities in the U.S. and other jurisdictions while maintaining a focus on cost-effective power sources [85][86] Q&A Session Summary Question: How should we think about the use of the ATM over the balance of this year? - Management indicated they plan to judiciously use the ATM, projecting a potential raise of $50 million or slightly more while being careful in capital management [9][68] Question: What is the expected cash flow from operations? - Management projected excess cash flow from operations to be between $6 million to $10 million monthly, influenced by Bitcoin prices [10] Question: Can you provide more color on potential expansion opportunities in the U.S.? - Management confirmed they are evaluating multiple deals for cost-effective megawatts in the U.S. and believe there are good opportunities for expansion [85][86] Question: Will the company continue to sell the majority of its Bitcoin production? - Management anticipates some increases in their HODL strategy, utilizing a Synthetic HODL approach to balance capital needs and exposure to Bitcoin price increases [80] Question: How does the company view the economic landscape in Argentina for future expansion? - Management acknowledged Argentina's low energy costs but indicated a cautious approach due to political and economic uncertainties, focusing on Paraguay for immediate growth [99][101]