Bitfarms Ltd. (“
Bitfarms”, or the
“
Company”) (NASDAQ: BITF // TSXV: BITF), a
publicly traded Bitcoin mining company currently powering over 1%
of the Bitcoin network with greater than 99% green
hydroelectricity, today announces a Bitcoin production and
operations update.
Mining Production Highlights as of
September 1, 2021
- Mined 354 new Bitcoin during August
2021. The Company is currently mining approximately 10 Bitcoin each
day.
- Mined 745 Bitcoin in the first two
months of the third quarter, equivalent to approximately 98% of
Bitfarms entire second quarter Bitcoin production.
- Mined 2,102 Bitcoin in the first
eight months of 2021.
- Deposited 2,028 Bitcoin into
custody through September 1, 2021, representing approximately 96%
of the Company’s Bitcoin production this year and valued at
approximately US$101.4 million based on a Bitcoin price of
US$50,000.
- As of September 1, 2021, Bitfarms’
year-to-date Bitcoin (“BTC”) production by month was:
|
|
|
Month |
BTC |
|
January |
199 |
|
February |
178 |
|
March |
221 |
|
April |
232 |
|
May |
262 |
|
June |
265 |
|
July |
391 |
|
August |
354 |
|
|
|
|
Mining Operations Update
The Company is positioned to make substantial
progress over the remaining months of 2021 towards its goals of 3
Exahash by first quarter 2022 and 8 Exahash by year-end 2022.
- Bitfarms is scheduled to receive
its first delivery of 7,230 Bitmain S19j Pros before the end of
September. These miners will initially be deployed primarily to
replace Bitmain S9s, driving significant improvements in total
operating hashrate, average operating efficiency, production rate,
and reducing average Bitcoin production cost. The additional 723
Petahash per second represent an approximate 50% growth from the
Company’s existing network hashrate of 1.4 Exahash per second.
- Bitfarms’ Cowansville, Quebéc,
facility is now operational and expected to be running at full
capacity by the end of September. This is expected to contribute
approximately 100 Petahash above the current production level.
- The Company agreed with the City of
Sherbrooke, Québec, on a comprehensive plan to accelerate the
utilization of all 96 MW of power in new, state-of-the-art
facilities in the City.
- At the beginning of September,
Bitfarms continued its geographic expansion with the signing in
Paraguay of a five-year lease with an annually-renewable power
purchase agreement to secure 10 MW of green hydro electrical
capacity at the competitive rate of 3.6 US cents per kilowatt hour.
The new Paraguay facility will be used to house approximately 3,000
used miners capable of 150 Petahash per second and is anticipated
to be fully operational by December 2021. If the site were fully
operational today it would be producing Bitcoin at a cost of
approximately US$7,850 per coin. The Company continues to pursue
other opportunities within Paraguay to increase it productive
capacity.
“As we execute on our expansion plans, we are
excited to surpass 2 Exahash per second in the coming months and
continue to add most of our mined Bitcoin to treasury at an even
faster rate than in the first half of 2021,” commented Emiliano
Grodzki, Bitfarms Founder and Chief Executive Officer. “As we work
to execute on our growth targets, we are aggressively pursuing
opportunities to add new infrastructure to support our equipment
acquisitions and look forward to reporting on even greater
infrastructure growth in the months ahead,” added Mr. Grodzki.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a Bitcoin mining
company, running 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. On
February 24, 2021, Bitfarms was honoured to be announced as a
Rising Star by the TSX-V. On June 21, 2021, Bitfarms started
trading on the Nasdaq Stock Market.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Québec. Each
facility is over 99% 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
MW: Megawatt
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), 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. The information in this release regarding expectations in
respect to its future rate of Bitcoin production, its future
accumulation of Bitcoin, its expansion plans, and about 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 global economic climate; 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; 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; dilution in relation
to the Company’s 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 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 applicable jurisdictions, 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
including the annual information form for the year ended December
31, 2020, filed on April 7, 2021. 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
Investor Relations:
CORE IR+1 516 222
2560Investors@bitfarms.com
US Media:
CORE IRJules Abraham, Director
of Public Relationsjulesa@coreir.com
YAP GlobalMia Grodsky, Account
Executivemia@yapglobal.com
Québec Media:
Ryan Affaires publiques Valérie
Pomerleau, Public Affairs and Communicationsvalerie@ryanap.com
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