Bitfarms Ltd. (“
Bitfarms”, or the
“
Company”) (TSXV: BITF / OTC:BFARF), one of the
largest, oldest and most cost-effective public bitcoin mining
operations in the world, is pleased to announce we have increased
our previously announced order of 3,000 MicroBT M31S+ miners by 50%
to a total of 4,500 miners. These 4,500 miners will be delivered on
schedule and be in production over the next 30 days.
Bitfarms’ current mining operations consists of
five sites in Quebec, utilising environmentally friendly
hydroelectric power. With the successful installation of these
4,500 miners, Bitfarms operational hashrate will increase 35% from
965 PH/s to 1.3 EH/s utilizing existing infrastructure.
Additionally, the high efficiency of these miners will improve our
overall efficiency by 12.5% to 49 w/TH, resulting in a direct
reduction in Bitcoin Gross Mining Costs*. At prevailing mining
difficulty levels as of February 17th, 2021, this translates
to:
1. Daily production
of over nine (9) Bitcoins
2. Daily Bitcoin
production value over US$450,000 based on Bitcoin’s recent all time
high of over US$50,000
3. Bitcoin Gross
Mining Costs below US$7,000 per Bitcoin
As of Jan 1, 2021, almost all of our daily
Bitcoin production has been added to our balance sheet in a Bitcoin
retention pilot program. In just 46 days, this pilot program has
accumulated over 250 BTC. During that period, the average daily
Bitcoin price was ~$40,800. With Bitcoin recently surpassing
US$50,000, Bitfarms is excited to report the early success of this
program. With the addition of the new miners, the Company intends
to continue to add more Bitcoin to its balance sheet at a faster
pace and with lower per unit costs. Bitfarms expects to have
approximately 500 BTC in the program in approximately 30 days.
The installation of these 4,500 miners will
increase Bitfarms operational fleet and will maximise the utility
of our current infrastructure. To prepare for future equipment
purchases, Bitfarms recently began construction of Phase II at our
site in Cowansville. This will expand the site capabilities from 4
MW to its full 16.7MW capacity and be able to accommodate up to
4,700 new generation miners. The buildout also includes a new
repair lab and operations command center which is expected to be
operational in Q2 2021.
“I’d like to wish a happy Chinese New Year and
thank our partners at MicroBT for their sustained efforts over the
last nine months to produce and deliver over 12,000 high efficiency
Bitcoin miners to us. MicroBT miners are well known in the industry
for their superior reliability and operability, contributing 100%
of our hashrate growth over the same period. We are thrilled to
continue to expand our relationship with MicroBT, especially at a
time when the Bitcoin mining industry is more popular than ever,”
said Emiliano Grodzki, Interim Chief Executive Officer of
Bitfarms.
About Bitfarms Ltd.
Founded in 2017 Bitfarms is one of the one of
the largest, oldest and most cost-effective public bitcoin mining
operations in the world. Bitfarms run vertically integrated mining
operations with onsite technical repair, data analytics and
engineers to deliver high performance and uptime of operations.
Having demonstrated rapid growth and stellar
operations, Bitfarms became the first Bitcoin mining company to
complete its long form prospectus with the Ontario Securities
Commission and started trading on the TSX-V in July 2019. Bitfarms
is currently listed as a Rising Star by the TSX-V.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Quebec. Each
facility is 100% powered with environmentally friendly hydro power
and secured with long-term power contracts. Bitfarms is currently
the only publicly traded pure-play mining company audited by a Big
Four audit firm.
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/
Defined Terms
* Bitcoin Gross Mining
Costs consist of electricity and other direct production expenses.
This is a non-IFRS performance measure. Please see the Non-IFRS
Financial Performance Measures section of Bitfarms management
discussion and analysis filed on www.sedar.com.
EH/s: Exahash per second.PH/s: Petahash per
second.w/TH: Watt per Terahash.
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 TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain
“forward-looking information” within the meaning of applicable
Canadian securities laws that are based on expectations, estimates
and projections as at the date of this news release. The
information in this release about 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 resulting
significant negative impact on the Company’s operations, the
construction and operation of expanded blockchain infrastructure as
currently planned, and the regulatory environment of cryptocurrency
in the Provinces of Canada.
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
reasonable assumptions and estimates of management of the Company
at the time it was 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 global
economic climate; dilution; the Company’s limited operating
history; future capital needs and uncertainty of additional
financing; 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; 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; and
volatile securities markets impacting security pricing unrelated to
operating performance. In addition, particular factors which could
impact future results of the business of Bitfarms include but are
not limited to: the construction and operation of blockchain
infrastructure 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 Province of Québec, 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 there will be no
regulation or law that will prevent Bitfarms from operating its
business. The Company has also assumed that no significant events
occur outside of the Bitfarms’ normal course of business. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially, 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 forward-looking
information. The Company undertakes no obligation to revise or
update any forward-looking information other than as required by
law.
ContactsFor corporate
inquiries:Geoff Morphygmorphy@bitfarms.com
For media inquiries:Ellis
Ballardellis@yapglobal.com
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