Bitfarms Ltd. (“
Bitfarms”, or the
“
Company”) (TSXV:BITF / OTC:BFARF), one of the
largest, oldest and most cost-effective publicly traded bitcoin
mining operations in the world, has undertaken a transformational
purchase of 48,000 new miners to increase hashing capacity by
approximately 5.0 EH.
The mining equipment has been sourced from
MicroBT (https://www.microbtwhatsminerd1.com). MicroBT has become
our supplier of choice. Over the past eight months we have acquired
over 12,000 of their mining rigs. The MicroBT miners are the most
reliable, efficient, and consistent miners within the Company’s
fleet. We anticipate the initial shipment of miners to take place
on or before January 2022. Thereafter, miners will arrive monthly
with the final mining rigs expected to arrive in December 2022. The
miners will be installed at our existing and new facilities which
are currently in development. In the event market conditions
change, Bitfarms has negotiated certain delivery and contract
adjustment options.
Once the above-noted miners are fully deployed
along with the current and planned addition of new miners in 2021,
the production capability of Bitfarms mining fleet is expected to
grow from over 1.0 EH at the present time to 3.0 EH by the end of
2021 and then to exceed 8.0 EH by the end of 2022. Utilizing the
latest generation of miners, the increase in our hash rate by a
factor of eight will increase Bitfarms’ global market share and
substantially increase the number of Bitcoins earned on a daily
basis. In addition, the subject miners are rated to achieve high
levels of performance while consuming less electricity than earlier
models. Bitfarms has always been an extremely efficient mining
company and with the addition of these productive miners and
greater scale, our corporate efficiencies are expected to set a new
performance standard.
“This is another great milestone in the history
of our company,” said Emiliano Grodzki, CEO of Bitfarms. "With this
equipment purchase agreement, Bitfarms is positioned to remain in
the top tier of publicly traded crypto mining companies in the
world. This purchase and expansion will be the cornerstone of our
corporate growth strategy through 2022. The supply of miners will
be one of the greatest challenges in for the foreseeable future due
to a global shortage of wafers used to create semi-conductor chips
which is a vital component in mining rigs. Our strategy will be to
continue to grow our own infrastructure and professional operations
and conduct mining in our own facilities which increases
operational efficiency and profitability,” added Mr. Grodzki.
“We are very excited to enhance and expand our
partnership with Bitfarms. Bitfarms is one of the best Bitcoin
mining operators in the world. The miners to be supplied to
Bitfarms are very reliable and stable. These miners will generate
tremendous value to Bitfarms in its mining operations and its
investors. We are very excited to continue to build the
relationship and cooperation between our two companies,” said
Vincent Zhang, MicroBT’s Global Sales Director.
On February 24, 2021, the TSX Venture Exchange
announced the 2021 Venture 50. The 2021 Venture 50 is a ranking of
top performers on TSX Venture Exchange over the last year. The
ranking comprises 10 companies from each of the five industry
sectors, selected based on three equally weighted criteria: market
capitalization growth, share price appreciation and trading volume.
Bitfarms was included in the Technology section and is honoured by
its selection and to be included amongst such a distinguished group
of leading companies.
About Bitfarms Ltd.
Founded in 2017 Bitfarms is one of the one of
the largest, oldest, and most cost-effective public bitcoin mining
operations in the world. Bitfarms run vertically integrated mining
operations with onsite technical repair, data analytics and
engineers to deliver high performance and uptime of operations.
Having demonstrated rapid growth and stellar
operations, Bitfarms became the first Bitcoin mining company to
complete its long form prospectus with the Ontario Securities
Commission and started trading on the TSX-V in July 2019. Bitfarms
is currently listed as a Rising Star by the TSX-V.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Quebec. Each
facility is 100% powered with environmentally friendly hydro power
and secured with long-term power contracts. Bitfarms is currently
the only publicly traded pure-play mining company audited by a Big
Four audit firm.
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/
Defined Terms
EH/s: Exahash 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 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 delivery of new miners on schedule and otherwise in accordance
with the contract terms; 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: successful delivery of the new miners on the agreed
schedule in accordance with the contract terms and the potential
for further improvements to profitability and efficiency across
mining operations; 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.
Contacts
For corporate inquiries:
Geoff Morphygmorphy@bitfarms.com
For media inquiries:Ellis
Ballardellis@yapglobal.com
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