A well-known Bitcoin mining firm has concluded 2024 with notable advancements in mining hashrate and USD revenue, despite experiencing a significant decline in production levels compared to the prior year.
The mining operator reported an impressive 97% year-on-year increase in hashrate, reaching 12.8 EH/s, alongside a 40% improvement in efficiency measured at 21 watts per terahash. However, the firm produced only 211 Bitcoin in December, a significant decrease from 446 mined in the same month the previous year, highlighting the growing challenges in network difficulty and intensifying competition within the cryptocurrency mining sector.
This year’s performance was weaker overall, with total Bitcoin mined reaching 2,914 BTC in 2024, down from 4,928 BTC in 2023. Nevertheless, the average Bitcoin price in 2024 surged to nearly $66,000, substantially increasing the value of mined coins compared to the previous year’s average price of just under $29,000. As a result, revenue from Bitcoin mining rose to $192 million, a $50 million increase from the year before.
In light of the evolving landscape of cryptocurrency mining, there is a significant push towards diversification. A strategic shift is underway to transition from traditional Bitcoin mining operations to a broader focus as a North American energy and computing company. While initial growth goals were not fully realized, the efforts in 2024 have proven transformative in operational and strategic positioning.
A major forthcoming acquisition of Stronghold Digital Mining, projected to finalize in the first quarter of 2025, represents the largest merger in the history of public Bitcoin mining companies. This merger is set to greatly enhance the firm’s presence in the U.S. PJM power market and is expected to raise their potential operational capacity to 1.6 gigawatts, with around 66% of this capacity based in the United States.
The Chief Financial Officer emphasized the firm’s liquidity, concluding the year with a robust $145 million liquidity position, which includes $60 million in cash reserves. In addition, a newly launched Synthetic HODL program in October 2023 yielded around $18 million in trading profits, achieving a significant 135% return in USD before its closure in December.
Currently, the firm holds a healthy Bitcoin reserve of 934 BTC, valued at approximately $87.8 million based on the price at year’s end. In December, 147 BTC were sold as part of regular treasury management, generating $14.3 million in proceeds.
Overall, despite facing substantial production challenges throughout 2024, the firm has managed to augment its operational capacity and revenue, while actively seeking new opportunities to adapt to the competitive and rapidly evolving cryptocurrency landscape.