Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global Bitcoin
self-mining company, provided a Bitcoin (BTC) production and mining
operations update for January 2023.
“With our proven best in class operations,
well-established corporate infrastructure and team firmly in place,
we are excited about the prospects in 2023 for both organic and
transactional expansion emerging from the industry downturn,” said
Geoff Morphy, CEO of Bitfarms. “In January, we continued to deliver
steady performance amidst a period of macro headwinds and
predominantly low BTC prices most of the month. Pursuing a
disciplined approach to investment as the industry consolidates and
recovers, we expect to benefit in 2023 and into the next halving
event in 2024.”
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “With 486 BTC mined in January, we increased production by
61% compared to 301 BTC in the same period a year ago and averaged
15.7 BTC mined per day. Two network difficulty increases during the
month impacted overall BTC productivity, as network difficulty
increased 10.3% on January 15, and by another 4.7% on January 29,
for a total of 15.5% in January. Additionally, during the month, we
deployed more efficient miners in Paraguay, which added a net 168
petahash per second (PH/s) near the end of the month.”
CFO Jeff Lucas added, “During January, we
continued to proactively increase financial flexibility by reducing
indebtedness and capital expenditure obligations. We paid off three
of our highest interest rate equipment loans totaling $830,000.
These payments furthered our progress towards achieving our
strategic objective of deleveraging our balance sheet that we set
in June of 2022.”
Mining Review
While Quebec was warmer in January 2023 than in
January 2022, energy curtailment programs impacted production as a
normal part of operations during the winter. As a result, Bitfarms
temporarily curtailed operations in Quebec, supporting the
community by restoring power back to the local grids.
Key Performance Indicators |
Jan. 2023 |
Dec. 2022 |
Jan. 2022 |
Total BTC Mined |
486 |
496 |
301 |
Month End Operating EH/s |
4.7 |
4.5 |
2.3 |
BTC/ Avg. EH/s |
110 |
113 |
158 |
Operating Capacity (MW) |
188 |
188 |
116 |
Hydropower MW |
178 |
178 |
116 |
Watts/Terahash Efficiency (w/TH) |
40 |
40 |
44 |
BTC Sold |
486 |
1,755 |
2 |
January 2023 Select Operating Highlights
- 4.7 EH/s online as of January 31, 2023, up 104% from January
31, 2022 and up 4% compared to December 31, 2022.
- 4.42 EH/s average online, compared to 4.38 EH/s in December
2022.
- 110 BTC/average EH/s, down 3% from 113 in December 2022.
- 486 new BTC mined, up 61% from January 2022 and down 2% from
December 2022.
- 15.7 BTC mined daily on average, equivalent to about $362,700
per day and approximately $11.2 million for the month based on a
BTC price of $23,100 on January 31, 2023.
Mining Operations
- Imported and
installed 2,888 new MicroBT M30s into Paraguay, which added a net
168 PH/s at this farm, bringing its total hashrate to 288 PH/s.
This equipment upgrade improves fleet w/TH efficiency, as it
replaces 2,450 Innosilicon T3 miners, which had contributed 120
PH/s and are now scheduled to be liquidated.
Bitfarms’ BTC Monthly
Production
Month |
BTC Mined 2023 |
BTC Mined 2022 |
January |
486 |
301 |
Total YTD |
486 |
301 |
January 2023 Financial
Update
- Paid down over $2.5 million in
equipment related indebtedness during the month including full
repayment of the three highest interest rate equipment loans
totaling approximately $830,000, which reduced the total
outstanding equipment related debt to $44.8 million.
- Sold 486 BTC, generating total
proceeds of $9.7 million.
- Held 405 BTC in custody at
January 31, 2023, representing a total value of approximately $9.4
million based on a BTC price of $23,100.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- February 1: Bitfarms along with the Digital Asset Mining
Coalition will appear before The House of Commons of
Canada’s Standing Committee on Industry and Technology in view of
its study of Blockchain Technology, Ottawa
- March 22-23: Sidoti’s March 2023 Small Cap Virtual
Conference
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly
traded (NASDAQ/TSX: BITF) Bitcoin self-mining company. Bitfarms
runs vertically integrated mining operations with in-house
management and company-owned electrical engineering, installation
service, and onsite technical repair. The Company’s proprietary
data analytics system delivers best-in-class operational
performance and uptime.
Bitfarms has 10 mining facilities around the
world, which are housed in four countries: Canada, the United
States, Paraguay, and Argentina. Powered by predominantly
environmentally friendly hydro-electric and long-term power
contracts, Bitfarms is committed to using renewable, locally based,
and often underutilized energy infrastructure.
To learn more about Bitfarms’ events, developments, and online
communities:
Website: www.bitfarms.com
https://www.facebook.com/bitfarms/https://twitter.com/Bitfarms_iohttps://www.instagram.com/bitfarms/https://www.linkedin.com/company/bitfarms/
Cautionary Statement
Trading in the securities of the Company should
be considered highly speculative. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein. Neither the Toronto
Stock Exchange, Nasdaq, or any other securities exchange or
regulatory authority accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This news release contains certain
“forward-looking information” and “forward-looking statements”
(collectively, “forward-looking information”) that are based on
expectations, estimates and projections as at the date of this news
release and are covered by safe harbors under Canadian and United
States securities laws. The statements and information in this
release regarding the Company’s prospects in 2023 for both organic
and transactional expansion, expectations for industry
consolidation and recovery (including expected benefits to the
Company in 2023 and into the next halving event in 2024),
expectations as to deleveraging the Company’s balance sheet and
other future plans and objectives of the Company are
forward-looking information. Other forward-looking information
includes, but is not limited to, information concerning: the
intentions, plans and future actions of the Company, as well as
Bitfarms’ ability to successfully mine digital currency, revenue
increasing as currently anticipated, the ability to profitably
liquidate current and future digital currency inventory, volatility
of network difficulty and digital currency prices and the potential
resulting significant negative impact on the Company’s operations,
the construction and operation of expanded blockchain
infrastructure as currently planned, and the regulatory environment
for cryptocurrency in the applicable jurisdictions.
Any statements that involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as “expects”, or “does not expect”,
“is expected”, “anticipates” or “does not anticipate”, “plans”,
“budget”, “scheduled”, “forecasts”, “estimates”, “believes” or
“intends” or variations of such words and phrases or stating that
certain actions, events or results “may” or “could”, “would”,
“might” or “will” be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
information and are intended to identify forward-looking
information.
This forward-looking information is based on
assumptions and estimates of management of the Company at the time
they were made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance,
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others, risks relating to: the Company’s outstanding indebtedness
(including in respect of any defaults thereunder); the global
economic climate; dilution; the Company’s limited operating
history; future capital needs and uncertainty of additional
financing, including the Company’s ability to utilize the Company’s
at-the-market offering (the “ATM Program”) and the prices at which
the Company may sell Common Shares in the ATM Program, as well as
capital market conditions in general; risks relating to the
strategy of maintaining and increasing Bitcoin holdings and the
impact of depreciating Bitcoin prices on working capital; the
competitive nature of the industry; currency exchange risks; the
need for the Company to manage its planned growth and expansion;
the effects of product development and need for continued
technology change; the ability to maintain reliable and economical
sources of power to run its cryptocurrency mining assets; the
impact of energy curtailment or regulatory changes in the energy
regimes in the jurisdictions in which the Company operates;
protection of proprietary rights; the effect of government
regulation and compliance on the Company and the industry; network
security risks; the ability of the Company to maintain properly
working systems; reliance on key personnel; global economic and
financial market deterioration impeding access to capital or
increasing the cost of capital; share dilution resulting from the
ATM Program and from other equity issuances; and volatile
securities markets impacting security pricing unrelated to
operating performance. In addition, particular factors that could
impact future results of the business of Bitfarms include, but are
not limited to: the construction and operation of facilities may
not occur as currently planned, or at all; expansion may not
materialize as currently anticipated, or at all; the digital
currency market; the ability to successfully mine digital currency;
revenue may not increase as currently anticipated, or at all; it
may not be possible to profitably liquidate the current digital
currency inventory, or at all; a decline in digital currency prices
may have a significant negative impact on operations; an increase
in network difficulty may have a significant negative impact on
operations; the volatility of digital currency prices; the
anticipated growth and sustainability of hydroelectricity for the
purposes of cryptocurrency mining in the applicable jurisdictions;
the inability to maintain reliable and economical sources of power
for the Company to operate cryptocurrency mining assets; the risks
of an increase in the Company’s electricity costs, cost of natural
gas, changes in currency exchange rates, energy curtailment or
regulatory changes in the energy regimes in the jurisdictions in
which the Company operates and the adverse impact on the Company’s
profitability; the ability to complete current and future
financings, any regulations or laws that will prevent Bitfarms from
operating its business; historical prices of digital currencies and
the ability to mine digital currencies that will be consistent with
historical prices; an inability to predict and counteract the
effects of COVID-19 on the business of the Company, including but
not limited to the effects of COVID-19 on the price of digital
currencies, capital market conditions, restriction on labour and
international travel and supply chains; and, the adoption or
expansion of any regulation or law that will prevent Bitfarms from
operating its business, or make it more costly to do so. For
further information concerning these and other risks and
uncertainties, refer to the Company’s filings on www.SEDAR.com
(which are also available on the website of the U.S. Securities and
Exchange Commission at www.sec.gov), including the annual
information form for the year-ended December 31, 2021, filed on
March 28, 2022. The Company has also assumed that no significant
events occur outside of Bitfarms’ normal course of business.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
expressed in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on any forward-looking
information. The Company undertakes no obligation to revise or
update any forward-looking information other than as required by
law.
Contacts:
LHA Investor RelationsDavid Barnard+1
415-433-3777Investors@bitfarms.com
Actual Agency Matt Weaver+1
339-234-3332mediarelations@bitfarms.com
Québec Media: TactLouis-Martin Leclerc+1
418-693-2425lmleclerc@tactconseil.ca
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