Bitfarms to Restate Financials Following SEC Review of Digital Asset Proceeds
Peter Zhang Dec 10, 2024 06:02
Bitfarms Ltd. will restate its financial statements for 2022 and 2023 after identifying a material error in the classification of digital asset sale proceeds.
Bitfarms Ltd. (Nasdaq/TSX: BITF), a global Bitcoin data center company, has announced a restatement of its previously issued financial statements for the fiscal years 2022 and 2023. This decision follows a review by the U.S. Securities and Exchange Commission (SEC) and consultations with its Audit Committee and management, according to GlobeNewswire.
Financial Restatement Details
The restatement addresses a material error related to the classification of proceeds from the sale of digital assets. Bitfarms initially recorded these proceeds as cash flow from operating activities. However, the SEC review concluded that they should be classified as cash flow from investing activities. This reclassification affects the financial statements for the years ended December 31, 2022 and 2023, as well as the interim periods ending September 30, 2023 and 2024.
Additionally, Bitfarms identified an error in accounting for the redemption of warrants in 2023, which will also be corrected in the restated financials. Despite these adjustments, the company emphasized that there is no impact on its overall cash position or net cash flows for the periods in question.
Impact and Future Steps
The company has acknowledged a material weakness in its internal control over financial reporting during the periods affected by the restatement. Bitfarms is currently implementing remediation measures to address these weaknesses and prevent future errors. The restated financial statements and related management discussions are available on SEDAR+ and EDGAR.
About Bitfarms
Founded in 2017, Bitfarms operates Bitcoin data centers across Canada, the United States, Paraguay, and Argentina. The company focuses on sustainable energy usage, primarily relying on hydro-electric power. Bitfarms continues to expand its operations with two new data centers in development and two under hosting agreements.
Bitfarms' proprietary data analytics system is designed to optimize operational performance and uptime, contributing its computational power to mining pools for Bitcoin payments. The company remains committed to utilizing environmentally friendly and often underutilized energy resources.
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