Bitfarms Reports Q4 2020 Revenue of $11.3 Million, Net Loss of $5.4 Million

Bitfarms Ltd (TSXV: BITF) this morning reported its fourth quarter and full year financial results for 2020, with the company recording revenues of $11.3 million for the fourth quarter along with a net loss of $5.4 million. The loss for the quarter was primarily attributed to financial expenses.

The firm for the fourth quarter meanwhile posted revenues of $34.7 million, along with a net loss of $16.3 million. Again, this was primarily related to “financial expenses.”

Revenues were up significantly on a quarter over quarter basis, with the company recording $11.3 million in revenues for the fourth quarter as compared to $6.8 million in the third quarter. Cost of sales for the quarter amounted to $8.6 million, resulting in a gross profit of $2.7 million.

On an operational basis the company managed to post a positive income, with expenses amounting to $2.3 million, resulting in positive operating income of $0.5 million following some small gains in the gain on the disposition of digital currencies. This gain was offset significantly however from financial expenses, which includes interest on long term debt and lease liabilities, as well as a loss on the revaluation of warrants, with a final net loss of $5.4 million recorded by the company for the quarter.

Giving a brief look to the balance sheet, Bitfarms saw its cash position improve from $1.3 million to $5.9 million, while receivables grew from $0.9 million to $1.1 million. Total current assets currently sits at $9.2 million, compared to $4.5 million in the prior quarter.

Things aren’t as rosy on the other side of the balance sheet however, with the company seeing accounts payable rise from $2.0 to $2.7 million over the quarter. The big jump comes from the current portion of long term debt, which rose from $11.8 million to $17.2 million, and the current portion of lease liabilities which rose to $3.6 million from $1.6 million. Total current liabilities overall climbed from $15.4 million to $28.5 million over the three month period.

Bitfarms last traded at $6.86 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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