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 the successful
installation and operation of its previously announced order of
4,500 MicroBT M31S+ miners, bringing the Company’s current
installed hashrate to 1.2 EH/s. This 24% growth rate in a single
quarter eclipses our entire 2020 growth and marks a tremendous
start to 2021 for Bitfarms and our shareholders as we work to grow
to 3 EH/s by the end of this fiscal year.
New Hosting Agreement
In addition to purchasing new miners, the
Company has entered into a hosting agreement with Blockware
Solutions and Blockware Mining in the United States. Pursuant to
the agreement, Bitfarms is sending older-gen and mid-gen hardware
for hosting at one of their American facilities. The hosting is
being accomplished in a flexible and low-cost profit-sharing
agreement powered by 100% renewable hydro energy.
This hosting agreement has enabled the Company
to extend the profitability and useful lifespan of up to 250 PH/s
of older and mid-generation Bitcoin Mining Equipment. This frees up
its Quebec infrastructure for more efficient and profitable mining
equipment. To date over 2,000 Bitmain S9, S15 and T15 mining rigs
have been successfully installed at Blockware Solutions’ facility
and are generating BTC. Through this upgrade process, these miners
have all been replaced with new MicroBT miners that operate an
average of approximately 4x more hashrate per miner located in our
Quebec facilities.
The remaining equipment under this upgrade
program will be deployed through Q2 and Q3 of this year. This novel
agreement also enables Bitfarms to opportunistically sell older
equipment out of the hosting agreement through Blockware’s broker
business. This unique hosting arrangement enables Bitfarms to get
the most possible value out of its used equipment while providing
tremendous flexibility and increased hashrate with negligible cash
expenditures.
Bitcoin Inventory Pilot
Program
Since starting its Bitcoin Inventory Pilot
Program in early January, the price of Bitcoin has nearly doubled
from US$30,000 to a recent all-time high of over US$60,000. Through
this Bitcoin Inventory Pilot Program, Bitfarms has been able for
the first time to accrue those gains for the benefit of our
shareholders. As a Company, we are excited to continue this
program.
Bitfarms is currently adding approximately 8
Bitcoins a day to the inventory and has to date mined and safely
deposited in custody 489 Bitcoin and is currently valued at over
US$27M as of March 23, 2021 with BTC at US$55,500.
- In the Fourth Quarter of 2020 -
Bitfarms mined 577 BTC.
- In January 2021 – Bitfarms mined
197 BTC.
- In February 2021 – Bitfarms mined
180 BTC.
“The growth in Bitcoin value since January
clearly shows the strategic importance of holding Bitcoin and the
tremendous opportunity to generate strong value for our
shareholders. Bitfarms is excited to continue our Bitcoin program.
With over 500 Bitcoin mined in the first quarter alone, we are
excited to be able to deliver one of the fastest growing Bitcoin
production rates in North America and with some of the lowest costs
of production,” said Emiliano Grodzki, Bitfarms’ Chief Executive
Officer.
New Miner Purchases
The Company has recently completed two purchases
of new-generation mining equipment manufactured by both MicroBT and
Bitmain to be installed later in 2021. When deployed, the
2,200 miners will produce an additional 183 PH of production and
consume approximately 7.25 MW of electricity. Based on Difficulty
levels on March 23, 2021, this equipment alone is expected to
produce an additional 1.1 Bitcoin per day at an average cost* of
US$6,500 per Bitcoin.
Name |
Miners |
|
Model |
Total Hash |
Delivery |
MicroBT |
1,500 |
|
M31S+ |
120 PH |
June 2021 |
Bitmain |
700 |
|
S19j |
63 PH |
October 2021 |
Total |
2,200 |
|
|
183 PH |
|
2021 Quebec Development &
Expansion
To deliver our growth forecast goals for 2021,
Bitfarms has recently made significant commitments to developing
new infrastructure in Quebec. These developments include our
previously announced Cowansville site renovation from 4 Mw to 16.7
Mw that will be ready in July.
Additionally, Bitfarms has recently paid
deposits on sufficient raw materials, transformers, and electrical
equipment to build an additional 80 MW of capacity in Quebec over
the remainder of 2021. The new infrastructure will be able to
support approximately 20,000 new generation miners and that will
add approximately 2 Exahash of new production. Additional expansion
information will be announced during the second quarter of
2021.
Stock-Market Listing
On February 4, 2021, we announced our intention
to pursue a stock exchange listing for the Company in the United
States. As an update, we are pleased to report that we are making
good progress. On March 8, 2021, Bitfarms filed its 2019 Annual
Information Form. Additional filings are expected shortly after we
release our 2020 audited results on March 25, 2021. We can also
confirm that in February, we made an application for listing on the
NASDAQ. The recent and forthcoming filings are a requirement of the
application process. There can be no assurances of success, but we
are working hard to make this a reality as soon as possible. We
encourage interested investors to regularly access Sedar.com to
watch for additional filings.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is 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-owner 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. As
mentioned above, we recently filed our first Annual Information
Report. On February 24, 2021 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
*Average cost per Bitcoin is
made up of electricity and other direct production expenses. This
measure is used to calculate Gross Mining Margin which 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.
Installed Hashrate: Equivalent to the sum of all
deployed miners based on manufacturers’ specified Bitcoin mining
hashrate.
EH/s: Exahash per second.PH/s: Petahash per second.w/TH: Watts
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.
Contacts
Investor Relations:
CORE IRTristan Traywick, Managing
Directortt@coreir.com
For Media Inquiries:CORE
IRJules Abrahamjulesa@coreir.com
YAP GlobalEllis Ballardellis@yapglobal.com
Ryan Affaires publiquesMark
Duschenemarc@ryanap.com
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