Bitfarms Ltd. (NASDAQ/TSX: BITF), a global leader in vertically
integrated Bitcoin data center operations, today announced its
latest monthly production report. All financial references are in
U.S. dollars.
In October, Bitfarms announced a second hosting
agreement with Stronghold Digital Mining, Inc. (“Stronghold”)
that will deploy 10,000 miners, originally scheduled for Yguazu,
Paraguay, to Stronghold’s Scrubgrass site. This follows an initial
hosting agreement for 10,000 miners signed in September for a total
of 20,000 miners to be deployed at Stronghold’s two sites in
Pennsylvania. The two hosting agreements support approximately 4
EH/s with energization expected in several tranches over the coming
months.
CEO Ben Gagnon stated, “While we are pleased to
have reached our year-end efficiency goal of 21 w/TH three months
ahead of schedule, we recognize that we are behind schedule on
delivering our mid-year 12 EH/s target. Despite improvements in
recent miner shipments, continued miner warranty servicing has
impeded the achievement of our hash rate target. We have a strong
partnership with Bitmain and appreciate their diligence in rapidly
servicing the underperforming miners as deliveries are scheduled to
accelerate in the last two months of the year.”
Mining ReviewOctober mining
operations generated 236 BTC compared to 217 BTC in September
reflecting a 3% increase in average operating EH and an 8% increase
in Bitcoin difficulty during the month.
Key Performance Indicators |
October 2024 |
September 2024 |
October 2023 |
Total BTC earned |
236 |
217 |
398 |
Month End Operating EH/s |
11.5 |
11.3 |
6.3 |
BTC/Avg. EH/s |
22 |
21 |
67 |
Average Operating EH/s |
10.6 |
10.3 |
5.9 |
Operating Capacity (MW) |
310 |
310 |
240 |
Hydropower (MW) |
256 |
256 |
186 |
Watts/Terahash Efficiency (w/TH) |
21 |
21 |
35 |
BTC Sold |
194 |
173 |
341 |
October 2024 Select Operating
Highlights
- 11.5 EH/s operational at October
31, 2024, up 83% Y/Y.
- 10.6 EH/s average operational, up
80% Y/Y and up 3% M/M.
- 22.2 BTC/average EH/s, up 5% M/M
and 67% lower Y/Y.
- 236 BTC earned, up 9% M/M and 41%
lower Y/Y.
- 7.6 BTC earned daily on average,
equal to ~$540,000 per day based on a BTC price of $71,000 at
October 31, 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 |
October |
236 |
398 |
YTD Totals |
2,496 |
4,090 |
October 2024 Financial
Update
- Sold 194 of the 236 BTC earned as
part of the Company’s regular treasury management practice for
total proceeds of $13.0 million.
- Added 42 BTC, bringing Treasury to
1,188 BTC, up from 1,147 BTC last month and representing $84.3
million based on a BTC price of $71,000 at October 31,
2024.
- Synthetic HODL™ of 802 long-dated
BTC call options at October 31, 2024, up from 602 at the end of the
prior month.
Upcoming Conferences and
Events
- November 13-14: Cantor Crypto,
Digital Assets & AI Infrastructure Conference (Miami)
- November 19-20: ROTH Technology
Conference (NYC)
- November 20: Special Meeting of
Bitfarms Shareholders (Virtual)
- December 4: B. Riley Crypto &
Energy Infrastructure Conference (NYC)
- 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 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, as well as hosting agreements
with two data centers, 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
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 impact of the Stronghold hosting agreements,
projected growth, target hashrate, opportunities relating to the
Company’s geographical diversification and expansion, 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 gain access to additional electrical power and grow
hashrate of the Stronghold business, 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, 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 Bitfarms 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 Bitfarms to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors, risks and
uncertainties include, among others: 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 Stronghold acquisition;
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; 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 Bitfarms’ ability to
utilize an at-the-market offering program ( “ATM Program”) and the
prices at which securities may be sold in 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 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 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 its registration statement on Form F-4 (File No. 333-282657)
filed by Bitfarms with the SEC (the “registration statement”),
which includes a proxy statement of Stronghold that also
constitutes a prospectus of Bitfarms (the “proxy
statement/prospectus”). Although Bitfarms 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. 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.
Bitfarms does not undertake any obligation to revise or update any
forward-looking information other than as required by law. 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.
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:
Québec: TactLouis-Martin
Leclerc+1 418-693-2425lmleclerc@tactconseil.ca
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