The third
quarter of 2024 unveiled a tale of strategic divergence between two of Wall
Street’s Bitcoin Miners, as Hut 8 Corp.(NASDAQ: HUT) and Bitfarms Ltd. (NASDAQ:
BITF) navigated through challenging market conditions with notably different
approaches and outcomes.
This fits
well into the broader picture of an industry that, despite rising revenues,
could not achieve profitability in the past quarter.
Two Bitcoin Miners from
Wall Street Chart Divergent Paths in Q3 2024
While both
companies demonstrated resilience in a post-halving environment, their
financial results and strategic initiatives painted contrasting pictures of how
to succeed in the evolving digital asset mining landscape.
Hut 8
emerged from the quarter with a positive narrative, posting revenue of $43.7
million and achieving a modest net income of $0.9 million, compared to a net loss in the same period a year earlier. The company’s
success can be attributed to its disciplined operational approach and diversification
into high-performance computing and AI infrastructure.
Their
energy costs showed rising efficiency, dropping 33% year-over-year to $28.83
per MWh, while maintaining a competitive mining cost of $31,482 per Bitcoin.
“As of
October 31, 2024, our development pipeline exceeds 5 gigawatts, with more than
1.5 gigawatts under exclusivity,” commented Asher Genoot, CEO of Hut 8. “Three
projects from this pipeline are particularly promising for large-scale AI data
center projects. Collectively, they represent over 430 megawatts of capacity,
with power delivery expected to be available before the end of 2025.”
In
contrast, Bitfarms generated slightly higher revenue at $45 million but
recorded a substantial net loss of $37 million. The company’s aggressive
expansion strategy and fleet upgrade program, while promising for future
growth, resulted in higher operational costs with their total cost of
production per Bitcoin rising to $52,400 in Q3 from $47,300 in the previous
quarter.
Despite
these challenges, Bitfarms demonstrated strong operational growth, increasing
its hashrate to 11.9 EH/s from 10.4 EH/s in Q2.
“As
previously communicated, 2024 has been a transformative year for Bitfarms,”
stated Bitfarms’ CEO Ben Gagnon. “Year-to-date, we’ve refreshed nearly our
entire fleet of miners, significantly improving our mining economics, acquired
one new site and entered agreements to acquire two additional new sites in the
U.S.,
Both
companies maintain robust balance sheets,…
