Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically
integrated Bitcoin mining company, provides a monthly update for
October 2023.
“In October, we increased our hashrate to 6.3
EH/s as we completed energization of our Baie-Comeau, Québec
facility at 11 MW and boosted Rio Cuarto from 51 MW to 54 MW. We
ended October with 240 MW of operating capacity, up 31% from a year
ago,” said Geoff Morphy, CEO of Bitfarms. “With long-term and
low-cost energy contracts totaling 574 MW, we still have
significant room to expand our portfolio and build new farm
infrastructure that would more than double our current 240 MW in
production.”
“We’ve been steadfast this year in increasing
our financial flexibility and strengthening our balance sheet while
executing our 2023 growth plan. We have cost-effectively grown our
hashrate and farm infrastructure while prudently paying down debt.
Our disciplined strategy of carefully timing fleet upgrades has
embedded optionality as next generation miners coming to market now
could generate dramatic production increases at our existing state
of the art facilities. In short, we are well-positioned to invest
for the remainder of 2023 and into 2024 and take advantage of
disruptive opportunities around the April halving,” added
Morphy.
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “With Argentina and Baie Comeau now fully operational, we
have executed on our 2023 growth plan. As we look to 2024 and the
halving, we are paying close attention to the rapid growth of
network hashrate which historically has preceded many bull runs. On
cue, network difficulty is up 9.4% during the month, outpacing
hashrate growth of 3.2%. Anticipating that these macro conditions
were likely to occur, we remained disciplined in our approach to
growth and capital expenditures which has made us well positioned
to take full advantage of the acquisition of new gen miners
announced on October 2, 2023.”
Mining Review
October production of 398 BTC declined 3.2% from
the 411 BTC earned in September as network difficulty increased
9.4% in October compared to 2.7% in September, reflecting the
continuing strong demand for miners going into the 2024 halving.
For the ten months ended October 31st, network difficulty increased
76.6% while the BTC price was up approximately 107.8%, resulting in
a 23.3% improvement in production economics as measured by
USD/TH/day.
Key Performance Indicators |
October 2023 |
September 2023 |
October 2022 |
Total BTC earned |
398 |
411 |
486 |
Month End Operating EH/s |
6.3 |
6.1 |
4.2 |
BTC/Avg. EH/s |
67 |
70 |
115 |
Operating Capacity (MW) |
240 |
233 |
182 |
Hydropower MW |
186 |
183 |
172 |
Watts/Terahash Efficiency (w/TH) |
35 |
36 |
40 |
BTC Sold |
341 |
362 |
486 |
October 2023 Select Operating Highlights
- 6.3 EH/s
online as of October 31, 2023, up 50% from October 31, 2022, and up
3.0% from September 30, 2023.
- 5.9 EH/s
average online, up 1.0% from September 2023.
- 67.4
BTC/average EH/s, down 4.3% from 70.4 in September 2023.
- BTC earned,
down 3.2% from September 2023 and down 18.1% from October
2022.
- 12.8 BTC
earned daily on average, equivalent to about $437,800 per day and
approximately $13.6 million for the month based on a BTC price of
$34,200 on October 31, 2023.
- Installed
2,100 miners.
- At Paso Pe,
Paraguay, civil work and construction continued to advance on
schedule.
- At Rio
Cuarto, Argentina:
- Increased
capacity by 3 MW to 54 MW and hashrate to 1.6 EH/s.
- At
Baie-Comeau, Québec:
- Completed
remaining installations and ramped phase 1 operating capacity to
its full 11 MW.
Bitfarms’ BTC Monthly
Production
The table below presents an overview of BTC
earned in each of the first ten months of 2023 and 2022,
respectively.
Month |
BTC Earned 2023 |
BTC Earned 2022 |
January |
486 |
301 |
February |
387 |
298 |
March |
424 |
363 |
April |
379 |
405 |
May |
459 |
431 |
June |
385 |
420 |
July |
378 |
500 |
August |
383 |
534 |
September |
411 |
481 |
October |
398 |
486 |
Total YTD |
4,090 |
4,219 |
October 2023 Financial
Update
- Sold 341 BTC
of the 398 BTC earned, generating total proceeds of $10.0
million.
- Added 57 BTC
to treasury, increasing HODL to 760 BTC, representing approximately
$26.0 million based on a BTC price of $34,200 at October 31,
2023.
- Initiated our
Synthetic HODL™ strategy with the purchase of 35 long-dated BTC
call options.
- Reduced total
outstanding indebtedness by $1.9 million, resulting in a remaining
balance of $7.9 million at October 31, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- November 14:
Benzinga Future of Crypto, New York
- November 16:
Blockchain Jungle, San Jose, Costa Rica
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly
traded (NASDAQ/TSX: BITF) Bitcoin mining company that contributes
its computational power to one or more mining pools from which it
receives payment in Bitcoin. 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
- w/TH =
Watts/Terahash efficiency (includes cost of powering supplementary
equipment
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, growth
opportunities and prospects, including as to the Company’s plans to
expand operating capacity in multiple jurisdictions, upgrading and
deployment of miners as well as the timing therefor, improved
financial liquidity and 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, 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; 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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