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, today announces a number of corporate
developments.
New Miner Purchases
The Company has recently completed two purchases
of new-generation mining equipment manufactured by MicroBT to be
installed through August. When deployed, the 1,996 miners will
produce an additional 160 PH/s. These purchases are in addition to
the 1,500 M31S+ previously announced for delivery in June for a
total of 280 PH/s of new equipment to be installed in our
Cowansville expansion expected to be complete in July.
Name |
Miners |
|
Model |
Total Hash |
Delivery Month |
MicroBT |
496 |
|
M31S+ |
40 PH/s |
April 2021 |
MicroBT |
1,500 |
|
M31S+ |
120 PH/s |
June 2021* |
MicroBT |
1,500 |
|
M31S+ |
120 PH/s |
July 2021 |
Total |
3,496 |
|
|
280 PH/s |
|
*previously announced on March 24, 2021. |
Miner Rehabilitation
The Company has recently started rehabilitation
of older and mid-generation equipment that were previously
cost-ineffective to repair. When rehabilitated, this equipment will
restore approximately 80 PH/s of production to Bitfarms for a
capital cost of approximately US$5 per TH/s. This compares to
nearly US$120 per TH/s for new generation equipment on the spot
market today, providing a near immediate return on investment.
Bitcoin Inventory Pilot
Program
This week Bitcoin set another new all-time high
of more than US$64,000, a more than 100% increase Year-To-Date.
During this time, Bitfarms has mined and
retained over 650 Bitcoin in reserve, currently valued at US$41
million at US$63,000 per Bitcoin and is currently adding
approximately 7.5 Bitcoin per day to inventory. With prevailing
difficulty, Bitfarms expects its mined Bitcoin inventory will grow
to 1,000 Bitcoin within the next 50 days, representing
approximately US$63 million worth of value for our shareholders at
prevailing prices.
With the planned new miner purchases, ongoing
miner repairs, Bitfarms expects to increase its total hashrate to
approximately 1.6 EH/s by August. At the prevailing economics as of
April 15th, this equipment would produce approximately 9.5 Bitcoin
per day.
Stock Market Listing in the United
States
On February 4, 2021, we announced our intention
to pursue an additional stock exchange listing for the Company in
the United States. The Company has been continuing to actively move
forward with a Nasdaq listing process. Having filed our 2020 Annual
Information Form, we are now finalizing for submission our SEC Form
40-F, an important milestone towards our U.S. listing on the
Nasdaq.
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 runs vertically integrated mining
operations with onsite technical repair, proprietary data analytics
and Company-owned electrical engineering and installation services
to deliver high operational performance and uptime.
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. For
disclosure purposes, on March 8, 2021, Bitfarms filed an Annual
Information Form for its first time. On March 15, 2021, Bitfarms
was issued a receipt by the Ontario Securities Commissions for the
filing of its Preliminary Base Shelf Prospectus. These documents
and all other public filings are available on Sedar.com. On
February 24, 201 Bitfarms was honoured to be announced 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
Installed Hashrate: Equivalent to the sum of all
deployed miners’ manufacturers specified Bitcoin mining hashrate.
Actual operational hashrate may be different than installed and
operational.
EH/s: Exahash per secondPH/s: Petahash per secondTH/s: Terahash
per second
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.
Contacts
Investor Relations:
CORE IR516-222-2560
For media inquiries:YAP Global:Ellis
Ballardellis@yapglobal.com
US Media:CORE IRJules AbrahamHead of Public
Relationsjulesa@coreir.com
Quebec Media:Mark Duschene, Ryan Affaires
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