Bitfarms Ltd. (“Bitfarms”) (TSXV:BITF / OTC:BFARF), and Foundry
Digital LLC (“Foundry"), a wholly-owned subsidiary of Digital
Currency Group (DCG) focused on digital asset mining and staking,
jointly announce Bitfarms’ purchase of 2,465 Whatsminer M30S
Bitcoin mining machines through Foundry’s services, among other
updates.
Foundry
Partnership
Of the 2,465 machines, the first 1,465 were
previously installed in Bitfarms’ Sherbrooke facility in Q3 2020
for hosting. With the purchase of these machines, Bitfarms has
ended its last hosting agreement and returned 100% of installed
power capacity for its own Bitcoin production. Collectively, these
machines have increased Bitfarms’ operating hashrate by 133
PH/s.
The global chip shortage and Bitcoin’s rising
price continue to squeeze the supply of Bitcoin mining machines.
Standard lead times for orders of latest generation machines
currently range from 8 - 12 months and require down payments of
50-100% of the purchase price.
In light of this, Foundry, the market leader for
mining equipment financing in North America, has formed strategic
partnerships with the world’s leading Bitcoin mining manufacturing
companies to secure earlier access to machines for its clients.
Foundry has already helped to procure nearly half of the Bitcoin
mining machines installed in North America in 2020.
The purchase and financing of the first 1,465
machines through Foundry’s financing services enabled Bitfarms to
immediately increase its operating hashrate by 11% with only a 10%
down payment of approximately US$1 million. With current hardware
prices being at record highs, financing has become a crucial
component for Bitfarms to grow its operating hashrate with minimal
cash outflows. With prevailing economics, Bitfarms expects to
recover its initial deposit in under a month, and this equipment is
expected to generate positive cash flows for another 3 to 5
years.
Under similar terms, Bitfarms will obtain
financing to purchase an additional 1,000 Whatsminer M30S machines.
These machines will produce 90 PH/s and are scheduled to be
delivered in three shipments of 300-400 units in September, October
and November. In addition, Foundry commits to providing Bitfarms
with a US$10 million equipment financing credit facility in early
2022 to help finance the acquisition of new machines.
Bitfarms is also pleased to join the Foundry USA
Pool. This marks the first time Bitfarms has used a North America
based pool. In addition to providing the same amount of revenue for
Bitfarms via a full-pay-per-share (FPPS) model, the pool also has a
number of powerful management, auditing and reporting capabilities
which will give Bitfarms greater insight and control over its most
precious asset, its hashrate.
“We are excited to partner with an
industry-leading provider of equipment financing to secure timely
and reliable access to the latest generation of Bitcoin mining
machines, and to continue to grow our business,” said Emiliano
Grodzki, CEO of Bitfarms.
“We are pleased to provide Bitfarms, which is a
leading Bitcoin mining company in North America, with equipment
financing and a mining pool that has been designed to help publicly
traded companies such as Bitfarms scale their operations locally
and in a fully compliant manner,” said Mike Colyer, CEO of
Foundry.Miner Rehabilitation Update
On April 16th, Bitfarms announced the start of a
‘miner rehabilitation program’ for 80 PH/s of older and
mid-generation Bitcoin mining machines. Bitfarms is pleased to
announce that over half of those machines have now been repaired,
restoring over 40 PH/s and increasing Bitfarms’ installed operating
hashrate to 1.38 EH/s — the largest currently reported in North
America by a public company.
About Foundry
A subsidiary of DCG, Foundry is a financing and
advisory company focused on digital asset mining and staking. With
the mission of empowering decentralized infrastructure for a
digital world, Foundry provides North American digital asset mining
businesses with capital and intelligence. Foundry is based in
Rochester, NY. For more information, please visit
foundrydigital.com.
About Bitfarms
Bitfarms was founded in 2017 and is a Bitcoin
mining company. It runs 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 and is in the
process of seeking a second listing which would be on the
Nasdaq.
Bitfarms has a diversified production platform
with five industrial scale facilities located in Québec. 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.comhttps://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.PH/s: Petahash per
second.w/TH: Watt per Terahash.
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
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 is
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 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
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 that 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 applicable jurisdictions, 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
including the annual information form for the year ended December
31, 2020, filed on April 7, 2021. 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 forward-looking
information. The Company undertakes no obligation to revise or
update any forward-looking information other than as required by
law.
Contacts
Investor Relations:
CORE IR+1 516 222
2560Investors@bitfarms.com
Media Contacts:
FoundryBlocksBridge
ConsultingNishant Sharma, Founder and
Partnerfoundry@blocksbridge.com
Bitfarms
US Media:Core IRJules Abraham,
Director of Public Relationsjulesa@coreir.comYAP
GlobalMia Grodsky, Account Executivemia@yapglobal.com
Québec Media:Ryan Affaires
publiques Marc Duchesne, Directeur /
Directormarc@ryanap.com
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