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Good morning, everyone. Welcome to our webcast of the Q3 2020 Financial Results of Bitfarms Limited. Presenting today will be Emiliano Grodzki, our Interim CEO; and myself, Mauro Ferrara, the Interim CFO and Corporate Secretary of Bitfarms. I'd like to advise everyone that certain information discussed on this call and presented in the summary presentation may constitute forward-looking statements and income and therefore, point you to the cautionary statement slide on Page 2 of the summary presentation. In addition, on Slide 3 of the presentation, we note the use of non-IFRS performance measures that will be referred to in this presentation. These measures are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS and include EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, gross mining profit and gross mining margin. Please refer to the definitions of these non-IFRS performance measures on Slide 3. Finally, note that all financial figures are presented in U.S. dollars unless otherwise noted and references to Bitfarms include all of its consolidated entities, unless otherwise stated. I'll now turn the call over to Emiliano.
Thank you, Mauro. On Slide 6, we summarize our bitcoin mining production in Q3 2020. We mined 535 bitcoin in Q3 2020 compared to 834 bitcoin in Q3 2019, a decrease of 36%. The Q3 2020 mining production decreased compared to Q3 2019 primary due to the bitcoin halving event in May 2020, resulting in block reward to minus dropping from 12.5 to 6.25 per block as well as the substantial increase in network difficulty, the bitcoin halving event was anticipated by everyone in the bitcoin mining industry, and while the block reward have decreased by half, we are seeing mining economics start to normalize as bitcoin price has increased significantly subsequent to Q3. We will speak more on this later in the presentation. On the right side -- on the right of the slide, we summarize the period and hash rate for the company for the past 5 quarters. The company hash rate at the end of Q3 2020 under standard configuration stood at 780 petahash, a significant increase compared to 548 petahash in Q3 2019, mainly as a result of additional best-in-class miner added to our mining operation. Although the company hash rate remained stable from Q2 2020, the company petahash per megawatt efficiency has increased to 16.6 petahash per megawatt.Moving to Slide 7, approximately 97% of all electricity consumed by the company was used for crypto mining computing power. The chart on the right of the slide shows the power use efficiency of each of the company farm as well as the total company average compared to an external benchmark study on data center power efficiency. As can be seen, each of the company farms continue to operate well above the benchmark efficiency for top-tier data center, which is approximately 83%. Our power use proficiency is driven by the efficient design of our facilities, as is one of the reasons we remain a leader in terms of breakeven cost of production per bitcoin amongst all publicity trader miners. We'll now turn the call back to Mauro.
Thank you, Emiliano. On Slide 8, starting from the top left, We see that the company generated revenues of $6.8 million in Q3 2020 compared to $9.7 million in Q3 2019. The decrease in revenues was primarily due to the aforementioned May 2020 bitcoin halving event. The impact from the having was a reduction in revenue of approximately $5 million. However, this was partially offset by an increase in average bitcoin price as well as in Bitfarms hash rate in excess of average network difficulty in Q3 2020 compared to Q3 2019. The company's Q3 2020 EBITDA was negative $0.3 million, resulting in a negative EBITDA margin of 4% compared to an EBITDA of $7.2 million and an EBITDA margin of 74% in Q3 2019. The company's adjusted EBITDA in Q3 2020 stood at $0.4 million or 5% compared to an adjusted EBITDA of $4.7 million or 48% in Q3 2019. The company attained a gross mining margin of 26% in Q3 2020 compared to 67% in Q3 2019. The decrease was mainly as a result of the halving event and the substantial increase in network difficulty in Q3 2020. As described in our note on non-IFRS measures, gross mining margin is calculated as revenues less mining energy and infrastructure costs divided by revenues derived from our bitcoin mining operations. Despite the challenges presented by the halving our competitive hydroelectricity rate and operating efficiency enabled us to attain an average breakeven cost of production per bitcoin of approximately $7,500 for the quarter. This compares to the average realized sales price per bitcoin obtained by the company of $10,615. On Slide 9, we summarized the financial results for the 9-month period ended September 30, 2020 compared to the same period in the prior year. The company generated revenues of $23.4 million in 2020 compared to $21.9 million in 2019, an increase of $1.5 million or 7%. The company's EBITDA stood at $2 million or an EBITDA margin of 8% compared to an EBITDA of $7.3 million or 33% EBITDA margin for the same period in 2019. Adjusted EBITDA and adjusted EBITDA margin were $4.5 million or 19% in 2020 compared to $7.6 million or 35%, respectively, in 2019. Finally, the company's average breakeven cost of production per bitcoin for the 9-month period ended September 30, 2020, was approximately $5,300 based on electricity cost compared to approximately $2,800 for the same period in 2019. Overall, despite the difficult market conditions as a result of the bitcoin halving event and the COVID-19 pandemic Bitfarms continue to generate a positive cash flow from operations. We are pleased that the 26% gross mining margin achieved by the company in Q3 remains ahead of our Canadian competition, and we believe the strength of the Bitfarms operations' efficiency will continue to position it well for the remainder of the fiscal year. Slide 10 summarizes the financial position and ownership structure of the company as of the end of Q3 2020. The company ended the quarter with $1.3 million in cash and total assets of approximately $46 million. I'll now turn the presentation back to Emiliano.
Thanks, Mauro. Moving to our growth strategy. On Slide 12, you will see our expansion pipeline with approximately 90 megawatts of contracted hydroelectricity within Quebec. This pipeline is capable of producing approximately 3 exahash of additional computing power based on the current computing power and efficiency of the latest generation miners. CapEx remain one of the leading jurisdictions for ongoing investment in bitcoin mining, and we are excited to continue our collaboration with Hydro-Quebec and municipal energy distributors. We also continue to evaluate available energy in other competitively priced jurisdictions in Canada and begin to expand our power portfolio. Moving to Slide 13, we summarize a number of operational events. One, we have increased our operational capacity by 232 petahash or approximately 42% over the last 4 quarters, through both internally generated cash flow from operation and equipment lease [ fill ] financing, with 2,000 new generation miners started in November and additional 1,000 expected to be received in December. We estimate that we will be operating almost 1 exahash of computing power at an industry-leading efficiency of approximately 17 petahash per megawatt. Two, we have also continued to grow our infrastructure capacity with our 5-megawatt expansion at our St-Hyacinthe facility as well as rightsize our operating cost structure. The change that we made have allowed us to reduce run rate general and administrative expenses by approximately 20% per month. Three, we are also extremely pleased to have reached an agreement with our lending partner, Dominion, to amend long term to provide time and flexibility, which will allow us to continue to grow. Four, finally, we are proud to have secured PricewaterhouseCoopers as our auditors and to bolster our board with key additional to add a tremendous amount of practical business experience. As another first in the industry, we are the only public crypto mining company with a North American basis for -- with CPA. Fifth, we have worked extremely hard to build our system, process and control to provide quality reporting and transparency. 2020 has been an eventful year with many challenges, but we are pleased that Bitfarms has continued to make great progress. We are excited and optimistic about the future as we carry out our growth plans. This concludes today's webcast. Operator, I will now open the line for questions.
I see that there are no questions in the queue. Therefore, I would like to thank everyone for listening to our Q3 2020 webcast. We are very excited for the future of Bitfarms and look forward to updating the market with our progress in Q4. Thank you.