Bitfarms Ltd. (“Bitfarms”, or the “Company”)
(TSXV: BITF), one of the largest and most cost-effective public
bitcoin mining operations in the world, provides corporate update
on activities and changes for the benefit of all shareholders.
Computing Power
Expansion:
Bitfarms is on schedule to install 3,000 additional miners at
the end of this month. Upon successful completion of these
installations, the Company will have installed 8,847 latest
generation miners since June 2020. As a result of this growth, the
Company will have added over 679 Petahash per second (“PH”) of
computational power to its mining operations within the past eight
months.
Announced:
Installed:
Equipment:
June 2020
June 2020
1,847 MicroBT’s WhatsMiner M20S units
adding 133 PH of computing power
August 2020
September 2020
1,000 MicroBT’s WhatsMiner M31S+ units
adding 82 PH of computing power
October 2020
November 2020
2,000 MicroBT’s WhatsMiner M31S unit
adding 144 PH of computing power
October, 2020
Mid - December 2020
1,000 MicroBT’s WhatsMiner M31S units
adding 74 PH of computing power.
December 2020
Late February 2021 (Expected)
3,000 MicroBT’s WhatsMiner M31S+ units
forecast to add 246 PH of computing power.
The Company currently has a Bitcoin mining market share of
approximately 0.66% (.965Exahash/147.315Exahash), with an estimated
mining output of over six Bitcoins per day, a daily value of in
excess of US$222,000.
With the addition of these new and efficient miners, the
Company’s fleet of miners now achieve a higher level of
computational throughput while using comparatively less electricity
per PH. The Company’s acquisition of these miners prior to the late
2020 Bitcoin price surge has resulted in capital cost savings for
the Company, through purchasing these miners when demand and prices
were low.
Bitfarms plans to further develop the infrastructure capacity at
two of its mining facilities during the second fiscal quarter of
2021, through the addition of new transformers. The additional
transformers are anticipated to create approximately 15 MW of
additional capacity.
Expansion Plans:
Bitfarms operates five data centres in the Province of Quebec
and possesses long term contracts with Hydro Quebec and several
municipal power utilities. Bitfarms values the relationship it
possesses with the local government and community members at its
data centres. The Company plans to bolster its cooperation with
these municipal bodies and communities through sustained employment
of local residents, ongoing by-law compliance including sound
control measures and consultation with community stakeholders.
The Company is seeking discussions with the Province and Hydro
Quebec to assess options for an expansion and activation of a sixth
data centre, in late 2021 or early 2022, that would be beneficial
to all parties.
In addition, the Company entertains expansion plans throughout
North America and elsewhere. In particular, as previously
announced, the Company has a non-binding memorandum of
understanding with a private energy producer to secure exclusive
use of up to 200 MW of electricity in South America at an average
price of US 2 cents per kilowatt hour (“kWh”). Discussions with
local engineering and project management firms to develop initial
capital investment cost estimates to operationalize the first 60 MW
of mining infrastructure are ongoing.
BTC Pilot Retention
Program:
After considerable planning, implementation of internal
controls, counter-party risk review, and custody arrangements, in
early January, Bitfarms has commenced a Bitcoin Pilot Retention
Program. Under this Program, for the first time, the Company is no
longer selling all the Bitcoins earned. As investors look to
alternatives to buying Bitcoins which can be cumbersome, expensive,
and risky, an investment in Bitfarms can be a proxy for directly
buying and holding Bitcoins. Since the start of this Program,
Bitfarms has added over 150 Bitcoin to its balance sheet.
Corporate Debt &
Financing:
In January 2021, the Company completed two private placements
for gross proceeds of C$40 million. The proceeds of the private
placements and the improved profit margins from the increase in
Bitcoin prices, has provided new and attractive options for
expanding the Company’s infrastructure, acquiring new miners, and
reducing the Company’s outstanding term debt.
As a result of the two private placements, the exercise of
various warrants, and the conversion of a term loan into equity,
the total number of outstanding shares of Bitfarms has increased to
approximately 113 million.
Management
Reorganization:
In December 2020, Bitfarms’ Board of Directors approved changes
to the Company’s executive management team to facilitate additional
governance and oversight towards the Company’s plans for expansion
and other initiatives in 2021.
On January 14, 2021, it was announced that Mathieu Vachon
amicably retired as an officer and director of the Company. The
Company continues with an experienced and knowledgeable management
team.
Stock-Market Listing:
Due to increasing demand by investors, management is actively
seeking an additional stock exchange listing for the Company in the
United States.
Emiliano Grodzki, Chief Executive Officer of Bitfarms added,
“Higher Bitcoin prices along with a strong management team has
allowed Bitfarms to achieve progress which only a few months ago
would have only been a dream. We are pleased with our progress and
are excited about what is possible in 2021 and beyond. We have
built a strong platform that distinguishes Bitfarms amongst its
peers. The outlook for further Bitcoin price appreciation is
positive and Bitfarms is well positioned to take full
advantage.”
About Bitfarms Ltd.
The Company owns and operates computing centres that power the
global decentralized financial economy. Bitfarms provides computing
power to cryptocurrency networks such as Bitcoin, earning fees from
each network for securing and processing transactions. Powered by
clean and competitively priced hydroelectricity, Bitfarms operates
five computing centres in Québec, Canada. Bitfarms’ experienced
management team includes industrial-scale data centre operators and
capital markets professionals, focused on building infrastructure
by developing and hosting one of the industry’s most efficient
ecosystem growing around blockchain-based technologies.
To learn more about Bitfarms’ events, developments and online
communities:
Website: www.bitfarms.com
https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io https://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) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains certain “forward-looking information”
within the meaning of applicable Canadian securities laws that are
based on expectations, estimates and projections as at the date of
this news release. The information in this release about 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 resulting significant negative
impact on the Company’s operations, the construction and operation
of expanded blockchain infrastructure as currently planned, and the
regulatory environment of cryptocurrency in the Provinces of
Canada.
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 reasonable
assumptions and estimates of management of the Company at the time
it was 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; 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; and volatile securities markets impacting security pricing
unrelated to operating performance. In addition, particular factors
which 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 Province of Québec, 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 there will be no
regulation or law that will prevent Bitfarms from operating its
business. The Company has also assumed that no significant events
occur outside of the Bitfarms’ normal course of business. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially, 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 forward-looking
information. The Company undertakes no obligation to revise or
update any forward-looking information other than as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210204005407/en/
For investor inquires: Geoff Morphy, President
+1.647.500.7440 gmorphy@bitfarms.com
For media inquiries: Ellis Ballard +44 7725 951640
ellis@yapglobal.com
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