Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically
integrated Bitcoin mining company, provides a Bitcoin (BTC)
production and mining operations update for July 2023.
“We follow a disciplined and accretive growth
strategy of securing low-cost power and investing capital wisely in
highly efficient operations with compelling projected returns,”
said Geoff Morphy, CEO of Bitfarms. “To this end, in July we
initiated an expansion plan to nearly double our hydropower
capacity to 350 MW by acquiring 150 MW of under-utilized hydropower
in Paraguay. As an industry veteran of over five years with
operations in four countries, Bitfarms has a proven track record of
expeditiously establishing operations in new jurisdictions. Through
expansion in Paraguay, the Company seeks to leverage its industry
knowledge and economies of scale to drive greater production
efficiency. We plan to commence construction on the first 50 MW
facility here in Q3 2023.”
“In July, we started production at our 11th farm
in Baie-Comeau. It is on track to reach its first 11 MW of
production in Q3 2023 with an additional 11 MW targeted to come
online in 2H 2024. Upon completion, Baie-Comeau will increase our
Quebec portfolio to 8 sites and 170 MW of low-cost hydro power.
With miner deliveries and installations progressing smoothly in Rio
Cuarto, Argentina, we are confident we will achieve our Q3 2023
target hashrate of 6.3 EH/s,” concluded Morphy.
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “In July, BTC production was 378, compared to 385 BTC in June
2023 as difficulty increased another 3.3% in the month. Production
was also impacted by intense weather events, including record
temperatures and unprecedented wildfires that led to poor air
quality in Quebec and resulted in the temporary throttling back of
miners. In addition, our Magog farm went offline for 7 days because
of a direct lightning strike that disabled its primary electricity
transformer, although no other damage was incurred.
“Our strategy for risk mitigation incorporates
redundancy and geographic diversification. In the case of Magog,
the outage impacted only a small percentage of overall production.
Utilizing our highly skilled in-house electrical subsidiary and
reserve equipment and parts, we were able to restore production in
less than a week, rather than potentially a month or more if we
needed to order parts and equipment,” added Gagnon.
The average BTC price rose in July to $30,100,
up 9.1% from $27,600 in June. Of the 378 BTC mined, 333 BTC were
sold and 45 BTC were added to treasury, which reached 594 BTC at
July 31, 2023.
Mining Review
July production of 378 BTC was 1.8% lower than
the 385 BTC mined in June largely due to disruptions caused by
extreme weather resulting in lower average EH/s online.
Network difficulty increased 3.3% in July
compared to June as Bitcoin miners continue to invest in capacity
in anticipation of higher Bitcoin prices. Difficulty is up 48.0%
year-to-date in 2023, while the BTC price is up roughly 76.5% in
the same period, resulting in a 21.0% improvement in mining
economics as measured by USD/TH/day.
Key Performance Indicators |
July 2023 |
June 2023 |
July 2022 |
Total BTC Mined |
378 |
385 |
500 |
Month End Operating EH/s |
5.3 |
5.3 |
3.8 |
BTC/Avg. EH/s |
76 |
77 |
138 |
Operating Capacity (MW) |
212 |
207 |
166 |
Hydropower MW |
183 |
178 |
166 |
Watts/Terahash Efficiency (w/TH) |
38 |
39 |
41 |
BTC Sold |
333 |
346 |
1,623 |
July 2023 Select Operating Highlights
- 5.3 EH/s
online as of July 31, 2023, up 40% from July 31, 2022, and level
with June 30, 2023.
- 5.0 EH/s
average online, down 0.6% from June 2023.
- 76.1
BTC/average EH/s, down 0.8% from 76.7 in June 2023.
- 378 BTC
mined, down 1.8% from June 2023 and down 24.4% from July 2022.
- 12.2 BTC
mined daily on average, equivalent to about $356,240 per day and
approximately $11.0 million for the month based on a BTC price of
$29,200 on July 31, 2023.
- In Paraguay, acquired two Power
Purchase Agreements for up to 150 MW of hydropower: up to 50 MW in
Paso Pe, which is in close proximity to our existing operations in
Villaricca, and up to 100 MW in Yguazu, a new location close to the
third largest hydroelectric dam in the world.
- In Magog,
Québec, made upgrades to electrical infrastructure for 2,900 new
Bitmain miners.
- At Rio
Cuarto, Argentina, 2,360 miners have arrived and are being
processed by Argentine customs authority, with an additional 5,117
miners in transit.
- At
Baie-Comeau, Québec, initiated 3 MW of production, increased to 5
MW by July 31, 2023, on track to reach 11 MW in Q3 2023, and
positioned to add another 11 MW of planned hydropower capacity for
a total of 22 MW in 2H 2024.
- 1,300 miners
now running of total 2,900 redeployed from Magog.
- In Washington
State, upgraded ventilation and cooling systems, increasing average
uptime.
Bitfarms’ BTC Monthly
Production
The table below presents an overview of BTC
mined per month in each of the first seven months of 2023 and 2022,
respectively.
Month |
BTC Mined 2023 |
BTC Mined 2022 |
January |
486 |
301 |
February |
387 |
298 |
March |
424 |
363 |
April |
379 |
405 |
May |
459 |
431 |
June |
385 |
420 |
July |
378 |
500 |
Total YTD |
2,898 |
2,718 |
July 2023 Financial Update
- Sold 333 BTC of the 378 BTC
mined, generating total proceeds of $9.9 million.
- Reduced total outstanding
indebtedness by $1.8 million, resulting in a remaining balance of
$13.7 million at July 31, 2023.
- Added 45 BTC to treasury,
increasing custody to 594 BTC, representing approximately $17.3
million based on a BTC price of $29,200 at July 31, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- August 9-10,
Canaccord 43rd Annual Growth Conference, Boston
- September 7,
3rd Annual Needham Virtual Crypto Conference
- September
11-13, HC Wainwright Conference, New York
- September 14,
Bitfarms Analyst Day, New York
- September
25-27, POW (Proof of Work) Summit, Prague
- October
11-12, Bitcoin Amsterdam
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly
traded (NASDAQ/TSX: BITF) Bitcoin mining company. Bitfarms
develops, owns, and operates vertically integrated mining farms
with in-house management and company-owned electrical engineering,
installation service, and multiple onsite technical repair centers.
The Company’s proprietary data analytics system delivers
best-in-class operational performance and uptime.
Bitfarms currently has 11 farms, which are
located 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 sustainable, 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/
Glossary of Terms
- BTC BTC/day =
Bitcoin or Bitcoin per day
- EH or EH/s =
Exahash or exahash per second
- MW or MWh =
Megawatts or megawatt hour
- PH or PH/s =
Petahash or petahash per second
- TH or TH/s =
Terahash or 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 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 enhancement of mining facilities, geographic
diversification, growth opportunities and prospects, including as
to the Company’s plans to increase hydropower capacity, establish
operations in Paraguay and complete the Baie-Comeau farm, the
expansion of operating capacity, upgrading and deployment of miners
as well as the timing therefor, improved financial performance and
other statements regarding 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”, “prospects”,
“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 availability of financing
opportunities, risks associated with economic conditions,
dependence on management and conflicts of interest, the ability to
service debt obligations and maintain flexibility in respect of
debt covenants; economic dependence on regulated terms of service
and electricity rates; the speculative and competitive nature of
the technology sector; dependency on continued growth in blockchain
and cryptocurrency usage; lawsuits and other legal proceedings and
challenges; conflict of interests with directors and management;
government regulations; 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 equity offering
program (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, 2022, filed on
March 21, 2023. 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 Khushboo Chaudhary+1
646-373-9946mediarelations@bitfarms.com
Québec Media: TactLouis-Martin Leclerc+1
418-693-2425lmleclerc@tactconseil.ca
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