Bitfarms Expands Québec Mining Operations with 13 Megawatts of Hydro Power and Exceeds 1.6 EH/s Corporate Hashrate

Rhea-AI Summary

Bitfarms Ltd. has expanded its Cowansville, Québec facility, increasing its capacity from 4 MW to 17 MW. The company has installed 450 Bitmain S19j Pro miners, raising its corporate hashrate to approximately 1.6 EH/s, up from 1.5 EH/s. This expansion represents a 19% increase in Bitfarms' operational mining infrastructure in Québec, now totaling 82 MW. With plans for further growth, Bitfarms aims to reach 3 EH/s by Q1 2022 and 8 EH/s by the end of 2022.

Positive

• Increased capacity at Cowansville facility from 4 MW to 17 MW.
• Installation of 450 new Bitmain S19j Pro miners boosting hashrate to 1.6 EH/s.
• Expansion increases operational infrastructure in Québec by 19%.

Negative

• None.

- Increases capacity at Cowansville, Québec, from 4 MW to 17 MW -
- Receives and installs 450 Bitmain S19j Pro miners -
- Boosts hashrate by approximately 100 Petahash per second -

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated August 16, 2021 to its short form base shelf prospectus dated August 12, 2021.

TORONTO, Ontario and BROSSARD, Québec, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a Bitcoin mining company increased its corporate hashrate to over 1.6 Exahash per second (EH/s) through the expansion of operations at its Cowansville, Québec, facility and the installation of 450 newly arrived Bitmain S19j Pro miners. 

“Bitfarms is committed to developing the cost-effective infrastructure to support the 55,000 new generation Bitcoin mining machines scheduled to be delivered between now and the end of 2022,” said Emiliano Grodzki, CEO of Bitfarms. “As Bitfarms upgrades its miner fleet and existing facilities while expanding into new geographies, we will continue to increase our ability to produce Bitcoin with greater efficiency across decentralized operations. Cowansville broadens our footprint in Canada and marks our first new capacity build-out in Québec in 2021. This is one of many projects that excite us about our growth opportunities and supports our goal of achieving 3 EH/s by the end of first quarter of 2022 and 8 EH/s by the end of 2022.”

The Cowansville expansion is a completely new 17 MW facility, which replaces Bitfarms first Bitcoin mining facility of 4 MW constructed in 2017. Leveraging 4 years of experience, design, and engineering advances, this facility is expected to generate greater operating efficiencies, more robust capabilities, better controls, and lower sound emissions.

Hydro Québec has commenced delivering power to the facility, effective as of October 1, 2021. The expansion increases Bitfarms’ operational mining infrastructure in Québec approximately 19% to 82 MW. Through the redeployment of existing miners and the installation of an additional 450 Bitmain S19j Pro miners, Bitfarms has increased the corporate hashrate from approximately 1.5 EH/s to approximately 1.6 EH/s.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a Bitcoin mining company, running vertically integrated mining operations with onsite technical repair, proprietary data analytics and Company-owned electrical engineering and installation services to deliver high operational performance and uptime.

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. On February 24, 2021, Bitfarms was honoured to be announced as a Rising Star by the TSX-V. On June 21, 2021, Bitfarms started trading on the Nasdaq Stock Market.

Bitfarms has a diversified production platform with five industrial scale facilities located in Québec. Each facility is over 99% powered with environmentally friendly hydro power and secured with long-term power contracts. In addition, Bitfarms has announced new high power production facilities will be built in Québec, Paraguay, and Argentina. 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_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/

Defined Terms

MW – Megawatt - A megawatt is a unit for measuring power that is equivalent to one million watts.

PH – Petahash per second.

EX – 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), 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. The information in this release regarding expectations in respect to investor relation services, its expansion plans, and about other 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”, “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 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 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; 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; dilution in relation to the Company’s at-the-market offering (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 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 any 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:

LHA Investor Relations
+1 415-433-3777
Investors@bitfarms.com

US Media:
        
YAP Global
Mia Grodsky, Account Executive
mia@yapglobal.com

Québec Media:

Ryan Affaires publiques
Valérie Pomerleau, Public Affairs and Communications
valerie@ryanap.com 

FAQ

What recent expansion did Bitfarms announce in October 2021?

Bitfarms announced the expansion of its Cowansville, Québec facility, increasing capacity from 4 MW to 17 MW.

How many new miners did Bitfarms install at its Cowansville facility?

Bitfarms installed 450 new Bitmain S19j Pro miners at its Cowansville facility.

What is Bitfarms' current corporate hashrate after the recent expansion?

After the expansion, Bitfarms' corporate hashrate increased to approximately 1.6 EH/s.

How does the recent expansion affect Bitfarms' operational infrastructure in Québec?

The expansion increases Bitfarms' operational mining infrastructure in Québec by approximately 19%, totaling 82 MW.

What are Bitfarms' future hashrate goals following the Cowansville expansion?

Bitfarms aims to achieve a hashrate of 3 EH/s by the end of Q1 2022 and 8 EH/s by the end of 2022.