Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin
mining company, signed engineering, procurement and construction
(EPC) contracts and commenced construction of a production facility
in Argentina. As previously announced in April 2021, the new
facility is expected to add up to 210 megawatts (MW) of
infrastructure capacity in 2022 at a contracted rate of US 2.2
cents per kilowatt hour with electricity provided by a private
power company.
“Our new high-production facility in Argentina,
which is expected to accommodate over 55,000 miners upon
completion, will greatly expand our capacity and global footprint.
Combined with the expansion in Quebec, Canada and our planned
build-out in Paraguay, we are positioned to achieve our corporate
target of 8 exahash per second by year-end 2022,” said Emiliano
Grodzki, CEO of Bitfarms. “The Argentina facility is planned to
produce Bitcoin using power at the attractive rate of just US 2.2
cents per kilowatt hour, substantially reducing our already low
cost of mining Bitcoin. Leveraging our expertise and corporate
infrastructure, as well as that of our highly respected
construction partners, is part of our strategy to grow faster and
more efficiently by mining Bitcoin with improved profit
margins.”
Proyectos y Obras Americanas S.A. (“PROA”),
which has been engaged to provide engineering, procurement, and
construction services for the Argentina facility, has specialized
in utility-grade electrical infrastructure and civil construction
for almost 60 years. Its relevant expertise includes the design and
construction of electrical interconnections, high voltage
electrical lines, and transformers needed for operations of the
size of the planned Argentina facility. In addition to PROA,
Bitfarms has also engaged Dreicon S.A. as an independent
engineering firm to oversee construction, quality control and
project milestones for the company’s projected buildout
schedule.
The New Argentina Facility
Bitfarms’ new production facility will be housed
in four warehouse-style buildings inside the gates of a private
power company. In light of reduced demand in the rural location
where the power company is located, in April 2021 the parties
signed a mutually beneficial eight-year, 210 MW power purchase
agreement to power the facility. To date, most of the engineering
design and development work is complete and site preparation has
already begun.
The facility in Argentina is expected to
accommodate over 55,000 miners, including many of the 48,000
latest-generation MicroBT miners the company purchased in early
2021. This adds to the approximately 21,500 miners currently online
at Bitfarms.
“With five mining facilities up and running in
Quebec, Canada, we are building on our proven design, technology
expertise and implementation track record, with our sixth, and
largest, planned farm in Argentina,” concluded Grodzki. “The
management and technology teams are working closely together on
this strategic expansion, and several key Argentine hires have
already been made.”
Learn more about Bitfarms’ development partners
Proyectos y Obras Americanas S.A. (“PROA”) at www.proasa.com.ar/
and Dreicon S.A. at www.dreiconsa.com/.
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
Canadian 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/
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 expansion plans, anticipated mining capacity and
receipt of new miners, investor relation services, 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; 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; 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 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:
LHA Investor Relations+1 415 433
3777Investors@bitfarms.com
US Media:
YAP GlobalMia Grodsky, Account
Managermia@yapglobal.com
Québec Media:
Ryan Affaires publiques Valérie Pomerleau,
Public Affairs and Communicationsvalerie@ryanap.com
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