Bitfarms Clocks 42% Revenue Growth In Q1 Amid Declining Bitcoin Prices

• Bitfarms Ltd (NASDAQ:BITF) reported first-quarter FY22 revenue growth of 42% year-on-year to $40.3 million. Revenues were down from $60 million in 4Q21.
• Bitfarms mined 961 Bitcoin (BTC) at an average cost of production of $8,700 per BTC during Q1.
• The gross margin contracted 2,600 bps to 42% as costs surged 155.4% Y/Y.
• The gross mining margin contracted by 400 bps to 76% due to the decline in the BTC price. 
• The operating margin contracted by 4,100 bps to 17% as expenses surged 391% Y/Y. 
• Adjusted EBITDA margin expanded 1,100 bps to 80%.
• Bitfarms held $77 million in cash, and BTC was worth $239 million.
• "We delivered another profitable quarter in Q1 2022, even with the decline in the price of BTC, and revenues were up 42% compared to Q1 2021," COO Geoff Morphy said. "We have grown faster than the BTC network, as our hashrate at quarter end was 2.7 Exahash per second (EH/s), up 22% from December 31, 2021. As of today, our hashrate is 3.4 EH/s, representing about 1.5% market share."
• Price Action: BITF shares traded lower by 7.34% at $1.89 on the last check Monday.