Bitfarms, a prominent player in crypto mining, experienced a significant 42% decline in revenue during May, marking the first full month post the Bitcoin halving that took effect in mid-April.

The company's Bitcoin production plummeted from 263 Bitcoin (BTC) valued at $18.1 million in April to 156 Bitcoin ($10.7 million) in May. In a statement on June 3, Bitfarms characterized this period as the 'first full month with post-halving economics.' Additionally, the average Bitcoin yield per unit of computational power dropped by 45%, from 44 exahashes per second (EH/s) to 24 EH/s.

The Bitcoin halving event on April 20 reduced the Bitcoin mining subsidy from 6.25 BTC to 3.125 BTC, creating financial challenges for miners including Bitfarms. Bitfarms attributed part of the decrease in Bitcoin production to 'unusually cold temperatures' at its facility in Rio Cuarto, Argentina. The extreme weather conditions, described as the worst in 44 years, disrupted mining operations for eight days.

Bitfarms also mentioned a 4.2% decrease in network difficulty compared to April, partially offsetting the challenges faced during the month. Additionally, the company secured an extra 100 megawatts at its Yguazu site in Paraguay through an agreement with Paraguay’s state-owned entity, Administración Nacional de Electricidad. This agreement will double the site’s capacity to 200 megawatts, potentially adding 6 EH/s upon completion in 2025.

Currently operating at a hash rate of 9.5 EH/s, Bitfarms is set to become the fifth-largest hash rate contributor once an additional 16,200 Bitcoin miners are installed, boosting the capacity to 12 EH/s. The company operates mining facilities in the U.S., Canada, and Paraguay.

Notably, Bitfarms recently turned down a $950 million acquisition proposal from Riot Platforms. Despite the revenue decline, Bitfarms’ stock (BITF) surged by 2.92% on the Nasdaq on June 3, although it remains down by 15.9% in 2024 after a remarkable 2023 performance which saw a 588% rise in stock value.