Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically
integrated Bitcoin mining company, provided a Bitcoin (BTC)
production and mining operations update for May 2023.
“During May 2023, our increased visibility into
deliveries and installations in Rio Cuarto, Argentina led us to
accelerate our organic growth target of 6.0 EH/s from the end of Q4
2023 to the end of Q3 2023,” said Geoff Morphy, CEO of Bitfarms.
“We are focused on organic and other growth opportunities that
bring value and accretive cash flow to us ahead of the Halving
expected in April 2024. Contributing to our organic growth will be
reaching full production at the first 50 MW facility in Rio Cuarto
and the first 11 MW of the 22 MW expansion in process of closing in
Baie-Comeau, Quebec. In addition, we continue to build liquidity
and remain well-positioned to move quickly as attractive prospects
for equipment and sites emerge.”
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “In May, BTC production increased 6.5% year-over-year largely
due to a temporary spike in BTC transaction fees. A 47%
year-over-year increase in our hashrate was offset by a 65%
increase in network difficulty in the same period. On a sequential
month-over-month basis, our corporate hashrate held steady with 5.0
EH/s. Of the 6,200 miners ordered in April, 2,900 arrived in
Argentina in May as expected, and the remaining 3,300 are en
route.”
“With the average BTC price of $27,500 in May,
we continued to be cash flow positive, both from operations and
after scheduled interest and principal payments. Mining 459 BTC and
selling 414 BTC, we added 45 BTC to treasury in May, bringing the
total held at month-end to 510 BTC,” concluded Morphy.
Mining Review
Network difficulty increased another 5.2% in May
and is up 44.9% year-to-date in 2023, while Bitcoin price is up
roughly 63.5% in the same period, resulting in a 26.7% improvement
in mining economics as measured by USD/TH.
Production increased to 459 BTC, up 21.1% from
April, as energy curtailment in Quebec fully subsided and an
additional day of production was gained with 31 days in the month
of May.
Key Performance Indicators |
May 2023 |
Apr. 2023 |
May 2022 |
Total BTC Mined |
459 |
379 |
431 |
Month End Operating EH/s |
5.0 |
5.0 |
3.4 |
BTC/Avg. EH/s |
93 |
81 |
130 |
Operating Capacity (MW) |
196 |
196 |
137 |
Hydropower MW |
178 |
178 |
137 |
Watts/Terahash Efficiency (w/TH) |
39 |
39 |
42 |
BTC Sold |
414 |
349 |
2 |
May 2023 Select Operating Highlights
- 5.0 EH/s
online as of May 31, 2023, up 47% from May 31, 2022, and comparable
to April 30, 2023.
- 4.9 EH/s
average online, up 4.3% from April 2023.
- 92.6
BTC/average EH/s, up 14.9% from 80.6 in April 2023.
- 459 BTC
mined, up 6.5% from May 2022 and up 21.1% from April 2023.
- 14.8 BTC
mined daily on average, equivalent to about $401,100 per day and
approximately $12.4 million for the month, based on a BTC price of
$27,100 on May 31, 2023.
- In Rio
Cuarto, Argentina:
- 2,900 MicroBT
miners landed in Argentina and are scheduled to be installed in
June.
- Expect to
receive and install another 3,300 Bitmain miners in June.
- Continued
executing Baie-Comeau acquisition representing 22 MW of hydro power
capacity, which remains on track to close in June 2023.
Bitfarms’ BTC Monthly
Production
The table below presents an overview of BTC
mined per month in each of the first five 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 |
May |
459 |
431 |
Total YTD |
2,135 |
1,798 |
May 2023 Financial Update
- Sold 414 BTC of the 459 BTC
mined, generating total proceeds of $11.3 million.
- Reduced total outstanding
indebtedness by $1.8 million, leaving a balance of $17.4 million at
May 31, 2023.
- Added 45 BTC to treasury,
increasing custody to 510 BTC, representing approximately $13.8
million based on a BTC price of $27,100 on May 31, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- June 14-15,
Cantor Fitzgerald Technology Conference, New York
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
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 growth opportunities and prospects, and other
statements regarding 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”, “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 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
Bitfarms (NASDAQ:BITF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bitfarms (NASDAQ:BITF)
Historical Stock Chart
From Jul 2023 to Jul 2024