A publicly listed Bitcoin mining operation has recently closed the year 2024 with remarkable improvements in mining hashrate and revenue in USD, despite a significant reduction in production. The hashrate surged by 97% year-over-year, reaching 12.8 EH/s, while operational efficiency saw a 40% uptick, achieving 21 watts per terahash.
Despite these advancements, the mining output for December was 211 Bitcoin, a decrease from 446 mined in December of the prior year. This downturn highlights the increasing difficulty of the Bitcoin network and heightened competition within the mining landscape.
Throughout 2024, total Bitcoin production stood at 2,914 BTC, marking a noticeable decline from the 4,928 BTC recorded in 2023. In contrast, the average Bitcoin price soared to nearly $66,000 in 2024, a substantial increase from just below $29,000 in the previous year. Consequently, the mining revenue surged to $192 million, reflecting a $50 million increase from the previous year, despite the lower production numbers.
Recognizing the evolving challenges within the cryptocurrency mining arena, the operation is actively pursuing diversification strategies. They are positioning themselves as not just a Bitcoin miner but as a broader North American energy and computing entity. The commitment to this strategic pivot was asserted, acknowledging that while growth targets for 2024 were not fully achieved, transformative steps were made toward operational enhancement and market positioning.
A pending acquisition of a digital mining firm is set to close in the first quarter of 2025 and is touted as the largest merger among public Bitcoin mining companies thus far. This transaction is expected to considerably enhance the mining operation’s presence in the U.S. PJM power market, with plans to boost capacity to 1.6 gigawatts, of which around 66% will be based in the United States.
Financial assessments indicate a strong liquidity position of $145 million at the end of the year, complemented by $60 million in cash reserves. Additionally, a synthetic trading program launched in late 2023 delivered impressive results, generating approximately $18 million in profits with a 135% return expressed in U.S. dollar terms before concluding in December.
The operation has a substantial Bitcoin treasury consisting of 934 BTC, valued at approximately $87.8 million based on the year-end price of $94,000. For its treasury management strategy, 147 BTC was sold in December, yielding proceeds of $14.3 million.
In summary, the organization has demonstrated significant advancements in its operational capacity and revenue generation potential, even amidst the competitive and fluctuating landscape of Bitcoin mining. Future strategies, including the major acquisition and efforts to adapt to market conditions, underscore an emphasis on sustainable growth and resilience in a challenging environment.