Bitfarms Announces $375 Million At-the-Market Equity Offering Program

Rhea-AI Summary

Bitfarms Ltd. announced an at-the-market equity program with H.C. Wainwright & Co., LLC to raise up to US$375 million through the sale of common shares on the Nasdaq Stock Market. The proceeds will be used for capital expenditures, mining operations, and general corporate purposes.

Insights

Financial Analyst

Bitfarms Ltd.'s establishment of an at-the-market equity program is a strategic move that allows the company to raise capital flexibly and efficiently. By selling common shares at prevailing market prices, Bitfarms can potentially minimize dilution compared to fixed-price offerings. However, the impact on existing shareholders could be negative if the market perceives the potential sale of shares as a sign of liquidity issues or if the sales lead to significant dilution.

Investors should consider the company's growth trajectory and the cryptocurrency market's volatility. The capital raised through this program is earmarked for expansion and operational costs, which could lead to increased mining capacity and revenue in the long term. Nonetheless, the cyclical nature of cryptocurrency prices and regulatory risks must be factored into the investment thesis.

Legal Expert

The ATM Program's legal structure, utilizing a prospectus supplement and a shelf registration statement, provides Bitfarms with a pre-approved mechanism to offer shares over a period. This method offers regulatory compliance and transparency to investors, as the details are accessible through SEDAR and EDGAR databases. It is crucial for potential investors to understand that these securities offerings are subject to market conditions and regulatory compliance, which can affect the timing and volume of sales.

Market Research Analyst

The cryptocurrency mining industry is highly competitive and energy-intensive. Bitfarms' decision to invest in capital expenditures to improve its mining operations could enhance its competitiveness by reducing energy costs and improving mining efficiency. However, the industry's future depends heavily on the regulatory environment and energy prices. Market analysts should monitor these factors closely as they can significantly influence Bitfarms' operational costs and, consequently, its stock performance.

TORONTO, Ontario and BROSSARD, Québec, March 08, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (Nasdaq/TSX: BITF), a global Bitcoin vertically integrated company, announced that it has entered into an at-the-market offering agreement (the “ATM Agreement”) dated March 8, 2024 with H.C. Wainwright & Co., LLC (the “Agent”) as agent, pursuant to which the Company established an at-the-market equity program (the “ATM Program”). Pursuant to the ATM Program, the Company may, at its discretion and from time-to-time during the term of the ATM Agreement, sell, through the Agent, such number of common shares of the Company (“Common Shares”) as would result in aggregate gross proceeds to the Company of up to US$375 million. Sales of Common Shares, if any, through the Agent will be made through “at-the-market” issuances, including without limitation, sales made directly on the Nasdaq Stock Market or another trading market for the shares in the United States at the market price prevailing at the time of each sale. No Common Shares will be offered or sold under the ATM Program on the TSX or any other trading market in Canada. The ATM Program may be terminated by either party at any time.

The Company intends to use the net proceeds of the ATM Program, if any, primarily on capital expenditures to support the growth and development of the Company’s existing mining operations as well as for working capital and general corporate purposes.

Since the Common Shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company's management and in accordance with the terms of the ATM Agreement. To date, no Common Shares have been distributed by the Company pursuant to the ATM Agreement.

The offer and sale of the Common Shares under the ATM Program will be made by means of a prospectus supplement dated March 8, 2024 (the “Prospectus Supplement”) to the Company’s existing shelf prospectus dated November 10, 2023 (the “Base Shelf Prospectus” and, together with the Prospectus Supplement, the “Prospectus”) and U.S. registration statement on Form F-10 (the “Registration Statement”) (File No. 333-272989), which includes the Base Prospectus. The Prospectus Supplement has been filed with the applicable provincial regulatory authorities in Canada and the SEC. The Prospectus is available on the SEDAR website maintained by the Canadian Securities Administrators at http://www.sedar.com and is available on the SEC’s EDGAR website at http://www.sec.gov.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. 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 11 operating Bitcoin mining facilities and two under development situated in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

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 the ATM Program and any sales of the Common Shares thereunder and proceeds to the Company therefrom, as well as the potential use of such proceeds, are forward-looking information. 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 construction and operation of the Company’s 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; the impact of the Restatement on the price of the Company’s common shares, financial condition and results of operations; the risk that a material weakness in internal control over financial reporting could result in a misstatement of the Company’s financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; 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; 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 MD&A for the year-ended December 31, 2023, filed on March 7, 2024. 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, including factors that are currently unknown to or deemed immaterial by the Company. 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.

Investor Relations Contacts:

Tracy Krumme (Bitfarms)
+1 786-671-5638
tkrumme@bitfarms.com

David Barnard (LHA)
+1 415-433-3777
Investors@bitfarms.com

Media Contacts:

Actual Agency
Khushboo Chaudhary
+1 646-373-9946
mediarelations@bitfarms.com

Québec Media: Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca

FAQ

What type of offering agreement did Bitfarms Ltd. enter into?

Bitfarms Ltd. entered into an at-the-market offering agreement with H.C. Wainwright & Co., LLC.

How much does Bitfarms Ltd. aim to raise through the at-the-market equity program?

Bitfarms Ltd. aims to raise up to US$375 million through the sale of common shares.

Where will the common shares be sold under the ATM Program?

The common shares will be sold on the Nasdaq Stock Market or another trading market in the United States.

What will the net proceeds of the ATM Program be primarily used for?

The net proceeds will be primarily used for capital expenditures, supporting mining operations, and general corporate purposes.

Who will determine the volume and timing of sales under the ATM Program?

The volume and timing of sales will be determined at the sole discretion of Bitfarms Ltd.'s management.