Summary by Futu AI
Bitfarms Ltd. announced a restatement of its financial statements to correct the classification of proceeds from digital asset sales from operating activities to investing activities in its cash flow statements. The restatement impacts the interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.The company determined that proceeds from digital asset sales should be classified as investing activities rather than operating activities, as digital assets are accounted for under IAS 38 Intangible Assets. Additionally, Bitfarms corrected an error in the fair value recorded for warrant exercises from its 2023 private placement, resulting in a $4.9 million increase in share capital and accumulated deficit.Management considers these restatements to constitute a material weakness in internal controls and is implementing remediation measures, including expanding its finance team with technical expertise and engaging third-party consultants. The company expects to complete its remediation plan during 2024.
