Bitfarms Ltd. (NASDAQ/TSX: BITF), a global leader in vertically
integrated Bitcoin data center operations, is pleased to announce
its latest monthly production report. All financial references are
in U.S. dollars.
Ben Gagnon, Chief Executive Officer of Bitfarms,
stated, “We are pleased to have reached our end-of-year efficiency
goal of 21 w/TH three months ahead of schedule, allowing us to
expect an increase in gross data center profitability with current
mining economics. We drove a 16% increase in energy efficiency in
September by swapping out thousands of miners and implementing
energy efficiency measures across our facilities.”
On September 13, 2024, Bitfarms announced a
hosting agreement with Stronghold Digital Mining, Inc. that will
accelerate the deployment of 10,000 Bitmain T21 miners, originally
scheduled for Yguazu, Paraguay. These miners will bring an
immediate anticipated increase of ~2.2 EH/s to Bitfarms’
operational capacity when deployed to Stronghold’s Panther Creek
site, which is expected to be energized in the coming weeks.
Additionally, on September 23, 2024, Bitfarms
entered into a settlement agreement with Riot Platforms Inc. in
advance of the Special Meeting of Bitfarms Shareholders (the
“Special Meeting”). The Special Meeting, which was originally
scheduled to be held on November 6, 2024, has been rescheduled to
November 20, 2024.
Gagnon concluded, “We remain on track to achieve
21 EH/s in the coming months and to double our operating capacity
in 2025 with nearly 50% pro forma power capacity based in the U.S.
We are pleased to have reached an agreement with Riot which allows
us to focus our full attention on executing our growth strategy and
creating value for shareholders.”
Mining ReviewBitcoin difficulty
increased 1.2% in the month. As a result, September mining
operations generated 217 BTC compared to 233 BTC in August.
Key Performance Indicators |
September 2024 |
August 2024 |
September 2023 |
Total BTC earned |
217 |
233 |
411 |
Month End Operating EH/s |
11.3 |
11.3 |
6.1 |
BTC/Avg. EH/s |
21 |
22 |
70 |
Average Operating EH/s |
10.3 |
10.4 |
5.8 |
Operating Capacity (MW) |
310 |
310 |
233 |
Hydropower (MW) |
256 |
256 |
183 |
Watts/Terahash Efficiency (w/TH) |
21 |
25 |
36 |
BTC Sold |
173 |
147 |
362 |
September 2024 Select Operating
Highlights
- 11.3 EH/s operational at
September 30, 2024, up 85% Y/Y.
- 10.3 EH/s average operational, up
78% Y/Y and down 1% M/M.
- 21.1 BTC/average EH/s, down 6%
from the previous month due to the increase in average network
difficulty.
- 217 BTC earned, 7% lower M/M and
47% lower Y/Y.
- 7.2 BTC earned daily on average,
equal to ~$461,000 per day based on a BTC price of $64,000 at
September 30, 2024.
Bitfarms’ BTC Monthly
Production
Month |
BTC Earned 2024 |
BTC Earned 2023 |
January |
357 |
486 |
February |
300 |
387 |
March |
286 |
424 |
April |
269 |
379 |
May |
156 |
459 |
June |
189 |
385 |
July |
253 |
378 |
August |
233 |
383 |
September |
217 |
411 |
YTD Totals |
2,260 |
3,692 |
September 2024 Financial
Update
- Sold 173 of the 217 BTC earned as
part of the Company’s regular treasury management practice for
total proceeds of $10.5 million.
- Total liquidity of $146 million,
including $73 million in cash at September 30, 2024.
- Added 44 BTC, bringing Treasury to
1,147 BTC, up from 1,103 BTC last month and representing $73.4
million based on a BTC price of $64,000 at September 30,
2024.
- Synthetic HODL™ of 602 long-dated
BTC call options at September 30, 2024.
- The employment dispute with the
former CEO has been settled.
Upcoming Conferences and
Events
- October 21-22: AIM Summit
(Dubai)
- November 13-14: Cantor Crypto,
Digital Assets & AI Infrastructure Conference (Miami)
- November 20: Special Meeting of
Bitfarms Shareholders (Virtual)
- December 12: Northland Growth
Conference (Virtual)
- January 14 & 15, 2025: Needham
Growth Conference (NYC)
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global vertically
integrated Bitcoin mining data center 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 facilities 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 12 operating Bitcoin data
centers and two under development situated in four countries:
Canada, the United States, Paraguay, and Argentina. Powered
predominantly by environmentally friendly hydro-electric and
long-term power contracts, Bitfarms is committed to using
sustainable and often underutilized energy infrastructure.
To learn more about Bitfarms’ events,
developments, and online communities:
www.bitfarms.comhttps://www.facebook.com/bitfarms/https://twitter.com/Bitfarms_iohttps://www.instagram.com/bitfarms/https://www.linkedin.com/company/bitfarms/
Glossary of Terms
- Y/Y or M/M=
year over year or month over month
- BTC or BTC/day
= Bitcoin or Bitcoin per day
- EH or EH/s =
Exahash or exahash per second
- MW or MWh =
Megawatts or megawatt hour
- w/TH = Watts/Terahash efficiency
(includes cost of powering supplementary equipment)
- Synthetic HODL™
= the use of instruments that create BTC equivalent exposure
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 projected growth, target hashrate, opportunities
relating to the Company’s geographical diversification and
expansion, upgrading and deployment of miners as well as the timing
therefor, closing of the Stronghold acquisition on a timely basis
and on the terms as announced, the ability to integrate and
successfully operate the Sharon mega-site with access to up to 120
MW, entering into a definitive lease agreement and receive
regulatory approvals in respect of the letter of intent for a lease
to an additional 10 MW site in Sharon, the benefits of
the Stronghold acquisition and the other Sharon lease transactions
(collectively, the “Sharon Acquisitions”) , the
ability to gain access to additional electrical power and grow the
hashrate of the Stronghold business and the other Sharon
Acquisitions, performance of the plants and equipment upgrades and
the impact on operating capacity including the target hashrate
and multi-year expansion capacity, the opportunities to
leverage Bitfarms’ proven expertise to successfully enhance energy
efficiency and hashrate, the benefits of the growth strategy
including to merge HPC / AI with Bitcoin mining operations, and
other statements regarding future plans and objectives of each of
Bitfarms, Stronghold and the combined company, improved financial
performance and balance sheet liquidity, hashrate growth in
general, energy efficiency and cost savings in general, and other
growth opportunities and prospects, and other statements regarding
future growth, plans and objectives of the Company are
forward-looking information.
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. This forward-looking information is based on
assumptions and estimates of management of each of Bitfarms and
Stronghold 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 each of Bitfarms
and Stronghold 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: receipt of the approval of the shareholders of
Stronghold and the Toronto Stock Exchange for the Stronghold
acquisition as well as other applicable regulatory approvals; that
the Stronghold acquisition may not close within the timeframe
anticipated or at all or may not close on the terms and conditions
currently anticipated by the parties for a number of reasons
including, without limitation, as a result of a failure to satisfy
the conditions to closing of the Transaction; the letter of intent
on the 10 MW is subject to entering into a definitive lease
agreement and TSX approval, none of which is assured; the power
purchase agreements and economics thereof may not be as
advantageous as expected; the inability of Bitfarms to operate the
plants as anticipated following consummation of the Sharon
Acquisitions; the construction and operation of new facilities may
not occur as currently planned, or at all; expansion of existing
facilities may not materialize as currently anticipated, or at all;
new miners may not perform up to expectations; revenue may not
increase as currently anticipated, or at all; the ongoing ability
to successfully mine digital currency is not assured; failure of
the equipment upgrades to be installed and operated as planned; the
availability of additional power may not occur as currently
planned, or at all; expansion may not materialize as currently
anticipated, or at all; the power purchase agreements and economics
thereof may not be as advantageous as expected; potential
environmental cost and regulatory penalties due to the operation of
the Stronghold plants which entail environmental risk and certain
additional risk factors particular to the business of Stronghold
including, land reclamation requirements may be burdensome and
expensive, changes in tax credits related to coal refuse power
generation could have a material adverse effect on the business,
financial condition, results of operations and future development
efforts, competition in power markets may have a material adverse
effect on the results of operations, cash flows and the market
value of the assets, the business is subject to substantial energy
regulation and may be adversely affected by legislative or
regulatory changes, as well as liability under, or any future
inability to comply with, existing or future energy regulations or
requirements, the operations are subject to a number of risks
arising out of the threat of climate change, and environmental
laws, energy transitions policies and initiatives and regulations
relating to emissions and coal residue management, which could
result in increased operating and capital costs and reduce the
extent of business activities, operation of power generation
facilities involves significant risks and hazards customary to the
power industry that could have a material adverse effect on our
revenues and results of operations, and there may not have adequate
insurance to cover these risks and hazards, employees, contractors,
customers and the general public may be exposed to a risk of injury
due to the nature of the operations, limited experience with carbon
capture programs and initiatives and dependence on third-parties,
including consultants, contractors and suppliers to develop and
advance carbon capture programs and initiatives, and failure to
properly manage these relationships, or the failure of these
consultants, contractors and suppliers to perform as expected,
could have a material adverse effect on the business, prospects or
operations; 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 to
operate cryptocurrency mining assets; the risks of an increase in
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 Bitfarms and
Stronghold operate and the potential adverse impact on
profitability; future capital needs and the ability to complete
current and future financings, including each of Bitfarms’,
Stronghold’s or the combined company’s ability to utilize an
at-the-market offering program (each, an “ATM Program”) and the
prices at which securities may be sold in each such ATM Program, as
well as capital market conditions in general; share dilution
resulting from an ATM Program and from other equity issuances;
volatile securities markets impacting security pricing unrelated to
operating performance; the risk that a material weakness in
internal control over financial reporting could result in a
misstatement of financial position that may lead to a material
misstatement of the annual or interim consolidated financial
statements if not prevented or detected on a timely basis;
historical prices of digital currencies and the ability to mine
digital currencies that will be consistent with historical prices;
and the adoption or expansion of any regulation or law that will
prevent any of Bitfarms, Stronghold or the combined company from
operating its business, or make it more costly to do so. For
further information concerning these and other risks and
uncertainties, refer to Bitfarms’ filings
on www.sedarplus.ca (which are also available on the
website of the U.S. Securities and Exchange Commission (the “SEC")
at www.sec.gov), including the MD&A for the year-ended
December 31, 2023, filed on March 7, 2024 and the MD&A for the
three and six months ended June 30, 2024 filed on August 8, 2024
and Stronghold’s filings on www.sec.gov, including the Annual
Report on Form 10-K for the fiscal year ended 2023, filed on March
8, 2024, the Quarterly Report on Form 10-Q for the fiscal quarter
ended March 31, 2024, filed on May 8, 2024, the Quarterly Report on
Form 10-Q for the fiscal quarter ended June 30, 2024, filed on
August 14, 2024, and subsequent reports on Forms 10-Q and 8-K.
Although each of Bitfarms and Stronghold 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, including factors that are
currently unknown to or deemed immaterial by Bitfarms or
Stronghold, as applicable. 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. Neither Bitfarms nor Stronghold
undertakes any obligation to revise or update any forward-looking
information other than as required by law.
Additional Information about the Merger
and Where to Find It
This communication relates to a proposed merger
between Stronghold and Bitfarms. In connection with the proposed
merger, Bitfarms intends to file with the SEC a registration
statement on Form F-4, which will include a proxy statement of
Stronghold that also constitutes a prospectus of Bitfarms. After
the registration statement is declared effective, Stronghold will
mail the proxy statement/prospectus to its shareholders. This
communication is not a substitute for the registration statement,
the proxy statement/prospectus or any other relevant documents
Bitfarms and Stronghold has filed or will file with the
SEC. Investors are urged to read the proxy
statement/prospectus (including all amendments and supplements
thereto) and other relevant documents filed with the SEC carefully
and in their entirety if and when they become available because
they will contain important information about the proposed merger
and related matters.
Investors may obtain free copies of the
registration statement, the proxy statement/prospectus and other
relevant documents filed by Bitfarms and Stronghold with the SEC,
when they become available, through the website maintained by the
SEC at www sec.gov. Copies of the documents may also be obtained
for free from Bitfarms by contacting Bitfarms' Investor Relations
Department at investors@bitfarms.com and from Stronghold by
contacting Stronghold's Investor Relations Department at
SDIG@gateway-grp.com.
No Offer or Solicitation
This communication is not intended to and does
not constitute an offer to sell or the solicitation of an offer to
buy, sell or solicit any securities or any proxy, vote or approval,
nor shall there be any sale of securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be deemed to be made
except by means of a prospectus meeting the requirements of Section
10 of the Securities Act of 1933, as amended.
Participants in Solicitation Relating to
the Merger
Bitfarms, Stronghold, their respective directors
and certain of their respective executive officers may be deemed to
be participants in the solicitation of proxies from Stronghold's
shareholders in respect of the proposed merger. Information
regarding Bitfarms’ directors and executive officers can be found
in Bitfarms’ annual information form for the year ended December
31, 2023, filed on March 7, 2024, as well as its other filings with
the SEC. Information regarding Stronghold’s directors and executive
officers can be found in Stronghold’s proxy statement for its 2024
annual meeting of stockholders, filed with the SEC on April 29,
2024, and supplemented on June 7, 2024, and in its Form 10-K for
the year ended December 31, 2023, filed with the SEC on March 8,
2024. This communication may be deemed to be solicitation material
in respect of the proposed merger. Additional information regarding
the interests of such potential participants, including their
respective interests by security holdings or otherwise, will be set
forth in the proxy statement/prospectus and other relevant
documents filed with the SEC in connection with the proposed merger
if and when they become available. These documents are available
free of charge on the SEC’s website and from Bitfarms and
Stronghold using the sources indicated above.
Investor Relations
Contacts:
BitfarmsTracy KrummeSVP, Head
of IR & Corp. Comms.+1 786-671-5638tkrumme@bitfarms.com
Media Contacts:
U.S.: Joele Frank, Wilkinson Brimmer KatcherDan
Katcher or Joseph Sala+1 212-355-4449
Québec: TactLouis-Martin
Leclerc+1 418-693-2425lmleclerc@tactconseil.ca
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