Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global Bitcoin
self-mining company, provided a Bitcoin (BTC) production and mining
operations update for December 2022.
“In December, we energized the remaining
portions of The Bunker and Garlock farms, executing our Canadian
expansion plan two and one-half months ahead of schedule,” said
Geoff Morphy, CEO of Bitfarms. “Activating the full 96-megawatts
(MW) in Sherbrooke, as well as completing Warehouse One in Rio
Cuarto, and renegotiating miner contract commitments, we have
positioned ourselves for strategic growth with minimal cash outlay
in 2023.”
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “With the 496 BTC mined in December, our total 2022 BTC mined
reached 5,167, up 50% over 2021. We averaged 16.0 BTC mined per day
during December. In the month, we deployed new miners and
underclocked our least cost-efficient miners. This improved their
efficiency by 15%, resulting in a reduction of nearly 4 MW of power
consumption and representing substantial cost savings.
CFO Jeff Lucas added, “During 2022, we navigated
a challenging year. We increased our financial flexibility during
the year and are poised to explore emerging equipment and expansion
opportunities during this period of industry consolidation.”
Mining Review
During December, Bitfarms temporarily curtailed
operations in Quebec, supporting the community by restoring
approximately 4000 megawatt hours (MWh) back to local grids during
periods of extreme cold. This enhanced grid strength and resiliency
during unusual levels of demand and helped alleviate the grids’
need to run less efficient peaker power plants. The energy
curtailment impacted production similar to those of prior winter
periods as a normal part of operations.
Key Performance Indicators |
Dec. 2022 |
Nov. 2022 |
Dec. 2021 |
Total BTC Mined |
496 |
453 |
363 |
Month End Operating EH/s |
4.5 |
4.4 |
2.2 |
BTC/ Avg. EH/s |
113 |
105 |
169 |
Operating Capacity (MW) |
188 |
182 |
106 |
Hydropower MW |
178 |
172 |
106 |
Watts/Terahash Efficiency (w/TH) |
40 |
40 |
44 |
BTC Sold |
1,755 |
853 |
35 |
Select Operating Highlights
- 4.5 EH/s
online as of December 31, 2022, up 105% from December 2021 and up
2% compared to November 30, 2022.
- 4.38 EH/s
average online for the month of December.
- 113
BTC/average EH/s for the month of December, up 8% from 105 in
November 2022.
- 496 new BTC
mined during December 2022, up 37% from December 2021 and up 9%
from November 2022.
- 16 BTC mined
daily on average in December, equivalent to about US$265,600 per
day and approximately US$8.2 million for the month based on a BTC
price of US$16,600 on December 31, 2022.
Mining Operations
- In
Sherbrooke, Québec:
- Energized the
remaining 12 MW of the Garlock farm reaching the full 18 MW
capacity in early December.
- Brought
online the remaining 6 MW of Phase 3 of The Bunker, reaching the
full 48 MW capacity in early December.
- Finished
decommissioning the de la Pointe farm and transferred ownership to
the City of Sherbrooke, Department of Transportation as
planned.
- Completed the
Sherbrooke campus ahead of schedule, activating the entire 96
MW.
- Completed
construction of the first 50-MW warehouse in Rio Cuarto,
Argentina.
- Underclocked nearly 2,300
underperforming miners improving w/TH by 15% with a reduction of
nearly 4 MW of power consumption representing important cost
savings.
- Scheduled 5,600 miners, capable
of 540 PH/s, for deployment in Q1 2023, to expand EH/s and
eventually replace underperforming miners.
- Curtailed operations restoring
4000 MWhs to the grid.
Bitfarms’ BTC Monthly
Production
Month |
BTC Mined 2022 |
BTC Mined 2021 |
January |
301 |
199 |
February |
298 |
178 |
March |
363 |
221 |
April |
405 |
232 |
May |
431 |
262 |
June |
420 |
265 |
July |
500 |
391 |
August |
534 |
354 |
September |
481 |
305 |
October |
486 |
343 |
November |
453 |
339 |
December |
496 |
363 |
Total YTD |
5,167* |
3,453* |
*Due to rounding, numbers may not add up
precisely to totals.
Financial Update
- Sold de la Pointe farm for $3.6
million in net cash net proceeds.
- Paid $16.5 million to fully
extinguish the BTC-backed facility.
- Paid down $2.0 million in
equipment related indebtedness during the month, leaving an
outstanding balance of $47.0 million.
- Sold 1,755 BTC during December
2022, generating total proceeds of $29.9 million.
- Held 405 BTC in custody at
December 31, 2022, representing a total value of approximately $6.7
million based on a BTC price of $16,600.
- Held approximately $31 million in
cash and cash equivalents at December 31, 2022.
- Renegotiated miner purchasing
agreements, extinguishing payment obligations of $45.4 million
without penalty and establishing a $22.4 million credit for
pre-paid deposits to be applied against future purchase
agreements.
Conferences and Events
Bitfarms plans to attend the following events in
the next month:
- January
10-12: 25th Annual Needham Growth Conference, New York City
- January 11,
3:45 pm ET – Presentation
- Webcast
Registration
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 expanded operations in Québec and Argentina,
the impact of renegotiated miner commitments, enhanced equipment
operation, the benefits of reductions in indebtedness, the impact
of energy curtailment programs in the Province of Québec,
expectations for monthly growth, targets, and goals for productive
capacity and hashrates 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 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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