In May, Bitfarms experienced a 42% drop in revenue due to the effects of the Bitcoin halving that occurred in mid-April.
This was the first full month with the new post-halving economics in place. The company’s Bitcoin production decreased from 263 BTC ($18.1 million) in April to 156 BTC ($10.7 million) in May.
Additionally, the average amount of Bitcoin earned per unit of computational power fell by 45% from 44 exahashes per second (EH/s) to 24 EH/s. The halving resulted in a reduction of the Bitcoin mining subsidy from 6.25 BTC to 3.125 BTC, causing financial strain for miners.
The company also cited unusually cold temperatures at its Rio Cuarto facility in Argentina as a contributing factor to the decline in Bitcoin production.
This extreme weather, which the company claims was the worst in 44 years, forced them to suspend mining operations for eight days. However, the damage in Argentina was somewhat offset by a 4.2% decrease in network difficulty compared to April.
