Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically
integrated Bitcoin mining company, provided a Bitcoin (BTC)
production and mining operations update for April 2023. In
addition, earlier today Bitfarms announced it had regained
compliance with the minimum bid price requirement of $1.00 per
share under Nasdaq Listing Rule 5550(a)(2).
“As we announced last week, boosted by
production increases from new installations in Rio Cuarto,
Argentina, our operational hashrate reached 5.0 EH/s on April 27,
2023,” said Geoff Morphy, CEO of Bitfarms. “Importantly, our
private power producer in Argentina is now fully permitted to
provide up to 100 MW, and we are able to begin purchasing power
under this agreement at prices expected to be below $0.03 per KWh.
With the permitting milestone achieved, we are positioned to expand
in Rio Cuarto with sourced power costs that should reduce our
average cost of power and realize our growth target of 6.0 EH/s in
2023. Additionally, in April we entered into agreements to acquire
22 MW of hydro power capacity in Baie-Comeau, Quebec, subject to
closing, that is expected to drive further growth and our renewable
energy portfolio.”
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “In April, BTC production declined 6% year-over-year, as a
52% increase in our hashrate was offset by a 61% increase in
network difficulty and a 9-day shutdown in Rio Cuarto as we
transitioned to a new substation. However, we continued to drive
hashrate growth on a sequential month-over-month basis, as 4%
growth in April increased our corporate hashrate to 5.0 EH/s at the
end of the month. We also purchased an additional 650 PH/s of new
Bitmain and MicroBT miners to fill out another 22 MW in the first
warehouse, which is expected to increase our total hashrate a
further 13% upon deployment in the coming months. With competitive
pricing and high efficiency, we expect these new miners will
improve corporate energy efficiencies measured by w/TH and reduce
our overall operating costs/TH. Furthering our cost control
initiatives, we also rolled out miner specific real-time energy
tracking across all sites and a hardware diagnostics tool that
should dramatically reduce repair times on new miner models.”
“For April 2023, we were cash flow positive from
operations after scheduled interest and principal payments.
Reflecting improved mining economics, as in March, we sold less BTC
than we produced, which resulted in a net addition of 30 BTC to
treasury in April, bringing the total at month end to 465 Bitcoin,”
concluded Morphy.
Mining Review
Network difficulty increased another 4% in April
and is up 38% year-to-date in 2023, while Bitcoin price is up
roughly 77% in the same period, resulting in a 9% improvement in
mining economics as measured by USD/TH.
Energy curtailment in Quebec continued to
moderate in April, as warmer weather reduced the energy demand by
local power grids. With the coming of the Spring bloom in Quebec,
energy curtailment is expected to subside. The table below presents
an overview of April 2023 performance metrics as compared to both
March 2023 and April 2022.
Key Performance Indicators |
Apr. 2023 |
Mar. 2023 |
Apr. 2022 |
Total BTC Mined |
379 |
424 |
405 |
Month End Operating EH/s |
5.0 |
4.8 |
3.3 |
BTC/ Avg. EH/s |
81 |
91 |
134 |
Operating Capacity (MW) |
196 |
188 |
137 |
Hydropower MW |
178 |
178 |
137 |
Watts/Terahash Efficiency (w/TH) |
39 |
39 |
42 |
BTC Sold |
349 |
394 |
2 |
April 2023 Select Operating Highlights
- 5.0 EH/s
online as of April 27, 2023, up 52% from April 30, 2022, and up 4%
compared to March 31, 2023.
- 4.7 EH/s
average online, compared to 4.6 EH/s in March 2023.
- 80.6
BTC/average EH/s, down from 91.4 in March 2023.
- 379 new BTC
mined, down 6.4% from April 2022 and down 10.6% from March
2023.
- 12.6 BTC
mined daily on average, equivalent to about $369,180 per day and
approximately $11.1 million for the month, based on a BTC price of
$29,300 on April 30, 2023.
- In Rio
Cuarto, Argentina:
- Private power
producer became fully permitted to provide up to 100 MW, enabling
Bitfarms to commence purchasing low-cost power under Bitfarms’
purchase agreement,
- Finished
testing of the substation that is now online and capable of
delivering 120 MW,
- Increased
active capacity over 100% to 18 MW by energizing 2,100 additional
miners,
- Ended
underclocking of existing miners in line with improved economics,
and
- Purchased
over 6,200 new Bitmain and MicroBT miners to fill out an additional
22 MW in the first warehouse.
- Added new
hardware diagnostics tool that automates hardware diagnostics and
improves hardware repair times.
- Deployed
real-time energy tracking across all sites, allowing for individual
machine optimization.
- Entered into
agreements to acquire 22 MW of hydro power capacity and to lease a
site in Baie-Comeau, Quebec, subject to customary closing
conditions.
Bitfarms’ BTC Monthly
Production
The table below presents an overview of BTC
mined per month in each of the first four months of 2023 and 2022,
respectively.
Month |
BTC Mined 2023 |
BTC Mined 2022 |
January |
486 |
301 |
February |
387 |
298 |
March |
424 |
363 |
April |
379 |
405 |
Total YTD |
1,676 |
1,367 |
April 2023 Financial Update
- Sold 349 BTC of the 379 BTC
mined, generating total proceeds of $10.1 million.
- Reduced total outstanding
indebtedness by $2 million, leaving a balance of $19 million at
April 30, 2023.
- Added 30 BTC to treasury, as a
result of solid cash flow from operations, increasing BTC in
custody to 465, representing a total value of approximately $13.6
million based on a BTC price of $29,300, on April 30, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- May
18-20: Bitcoin 2023, Miami FL
- May 18:
18th Annual Needham Technology &
Media Conference, Virtual
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly traded
(NASDAQ/TSX: BITF) Bitcoin mining company. 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 10 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
per Terahash
- KWh = Kilowatt
per hour
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 forward-looking information includes,
but is not limited to, information concerning the Company’s growth
expectations (and the drivers thereof), expectations regarding
reductions in the cost of power and other improvements in corporate
energy efficiencies, reductions in the Company’s overall operating
costs/TH and reductions in repair times, as well as other
statements regarding 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 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, including the Company’s
ability to utilize the Company’s at-the-market equity offering
program (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; 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; share dilution
resulting from 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 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 Lisa Helfer+1
646-373-9946mediarelations@bitfarms.com
Québec Media: TactLouis-Martin Leclerc+1
418-693-2425lmleclerc@tactconseil.ca
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