Bitfarms Earns 446 BTC in December 2023 and 4,928 BTC for the Full Year 2023
- Exceeded hashrate guidance by 44% YOY
- Recorded $118 million in liquidity at the end of 2023
- Low-cost power contracts for up to 593 MW
- Increased total liquidity by $52 million to $118 million in December 2023
- Increased BTC exposure through Synthetic HODL™ portfolio
- None.
Insights
The reported increase in hashrate and expansion of contracted capacity for Bitfarms Ltd. is a strong indicator of the company's growth trajectory and operational efficiency. The 44% year-over-year increase in hashrate to 6.5 EH/s surpasses the company's own guidance, demonstrating effective execution of their business strategy. The expansion to 593 MW of contracted capacity reflects a significant scaling of operations, which is crucial in the highly competitive Bitcoin mining industry.
From a financial perspective, the company's liquidity position at $118 million, with a low debt level of $4 million, positions it well to navigate the volatile cryptocurrency market and invest in strategic growth initiatives. The sale of 444 BTC out of the 446 BTC earned in December, generating $18.9 million and the company's strategic holding of 804 BTC in treasury suggest a balanced approach to managing cash flow and cryptocurrency market exposure.
The company's strategic investment in new Bitmain miners and the emphasis on improving hashrate and energy efficiency are proactive steps in anticipation of the 2024 Bitcoin halving event. This event, which reduces the block reward for miners, will pressure miners to improve operational efficiencies to maintain profitability. Bitfarms' focus on energy efficiency, targeting 25 w/TH, is particularly pertinent as it can significantly reduce operational costs and improve the company's competitive position.
Bitfarms' operational updates, including the growth in hashrate and contracted capacity, can be seen as a strategic move to capture a larger market share in the Bitcoin mining sector. The company's plan to achieve 12 EH/s and 25 w/TH fleet efficiency by Q2 2024 suggests a forward-looking approach to maintaining a competitive edge in the industry. This is particularly relevant as the Bitcoin mining sector is characterized by rapid technological advancements and a constant need for energy-efficient mining operations.
The company's geographical diversification with mining operations in the US, Canada and Paraguay provides a hedge against regulatory risks and potential power supply constraints. The Paraguay expansion is noteworthy, as the country offers competitive electricity rates, which can further enhance Bitfarms' cost efficiency. Additionally, the company's ability to keep pace with network hashrate growth while generating a similar number of Bitcoins year-over-year indicates robust operational capabilities.
It is also important to consider the market's response to the company's performance and growth plans. Investor sentiment in the cryptocurrency mining sector is often influenced by both the underlying cryptocurrency market trends and the operational efficiencies of mining companies. Bitfarms' performance and strategic positioning could influence investor confidence and potentially impact the stock's performance.
Bitfarms' update highlights the importance of energy considerations in the cryptocurrency mining industry. The company's low-cost power contracts for up to 593 MW and its focus on energy efficiency underscore the need for sustainable and cost-effective energy sources in mining operations. The shift towards hydropower, with 186 MW of the operating capacity derived from this renewable source, aligns with broader industry trends prioritizing green energy solutions.
The energy efficiency improvements, aiming for 23 w/TH, are significant when considering the energy-intensive nature of Bitcoin mining. Energy costs are a critical component of mining profitability and improvements in this area can lead to substantial cost savings and enhanced sustainability of operations. The energy sector's ongoing evolution, with a push towards renewable sources, is likely to benefit companies like Bitfarms that proactively seek energy-efficient technologies and power agreements.
Moreover, the company's proactive management of energy resources, as evidenced by the amended contract in Paraguay and infrastructure developments in Quebec, suggests strategic planning in securing energy capacity for future growth. This is particularly relevant in light of the potential for regulatory changes around energy consumption in the cryptocurrency mining industry.
- Increases hashrate
- Expands total contracted capacity to 593 MW at Dec. 31, 2023 -
- On track to achieve 12 EH/s and 25 w/TH fleet efficiency in Q2 2024 -
- Optionality to achieve 17 EH/s and 23 w/TH fleet efficiency in 2024 -
TORONTO, Ontario and BROSSARD, Québec, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically integrated Bitcoin mining company, provides an update for the month and year ended December 31, 2023.
“In 2023, we executed our growth plan and laid the groundwork for aggressive growth in 2024. We finished the year with
Ben Gagnon, Chief Mining Officer of Bitfarms, said, “Strong operations and uptime in December drove our average EH/s online up
Jeff Lucas, CFO of Bitfarms, said, “In 2024, we are building on our financial foundation with a continued focus on effectively utilizing cash flow from operations in our capital efficient growth plan for farm expansion and fleet-wide upgrades. Throughout 2023, we maintained a strong balance sheet during the fourth quarter, and we increased total liquidity by
Mining Review
December production of 446 BTC represented an increase of
| Key Performance Indicators | December 2023 | November 2023 | December 2022 |
| Total BTC earned | 446 | 392 | 496 |
| Month End Operating EH/s | 6.5 | 6.4 | 4.5 |
| BTC/Avg. EH/s | 72 | 66 | 113 |
| Operating Capacity (MW) | 240 | 240 | 188 |
| Hydropower MW | 186 | 186 | 178 |
| Watts/Terahash Efficiency (w/TH) | 35 | 35 | 40 |
| BTC Sold | 444 | 350 | 1,755 |
December 2023 Select Operating Highlights
- 6.5 EH/s online as of December 31, 2023, up
44% from December 31, 2022, and up2% from November 30, 2023. - 6.2 EH/s average online, up
5.1% from November 2023. - 71.7 BTC/average EH/s, up
8.0% from 66.4 in November 2023. - 446 BTC earned,
13.8% higher than November 2023 and10.1% lower than December 2022. - 14.4 BTC earned daily on average, equal to approximately
$612,000 per day based on a BTC price of$42,500 on December 31, 2023. - At Paso Pe, Paraguay:
- Finalized the amended contract for an additional 20 MW of energy to support expansion of air-cooled warehouse operating capacity from 30 MW to 50 MW for total capacity of 70 MW.
- Completed the manufacture of the 80 MW transformer, which is now in transit.
- Nearing completion of the underground cable connections to the ANDE sub-station.
- At Baie-Comeau, Quebec:
- Cleared the site to house the planned 11 MW H2 2024 expansion and poured the building’s concrete footings ahead of schedule.
Bitfarms’ BTC Monthly Production
| Month | BTC Earned 2023 | BTC Earned 2022 |
| January | 486 | 301 |
| February | 387 | 298 |
| March | 424 | 363 |
| April | 379 | 405 |
| May | 459 | 431 |
| June | 385 | 420 |
| July | 378 | 500 |
| August | 383 | 534 |
| September | 411 | 481 |
| October | 398 | 486 |
| November | 392 | 453 |
| December | 446 | 496 |
| Totals | 4,928 | 5,167 |
December 2023 Financial Update
- Sold 444 BTC of the 446 BTC earned, generating total proceeds of
$18.9 million . - BTC held in treasury increased to 804, representing approximately
$34.2 million based on a BTC price of$42,500 at December 31, 2023. - Increased Synthetic HODL™ by 100 long-dated BTC call options to 135 long-dated BTC call options at December 31, 2023.
- Reduced total outstanding indebtedness during the month by
$2.0 million , resulting in a remaining balance of$4.0 million at December 31, 2023, all of which is scheduled to be paid by February 2024. - Held approximately
$84 million in cash and cash equivalents at December 31, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming events:
- January 16-17: 26th Annual Needham Growth Conference, New York City - management is scheduled to present at 4:30 ET on January 17th.
- January 22-24: Series of meetings in Florida hosted by Bear Creek Capital
- January 30: Nasdaq Bell Ringing, New York City
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly traded (NASDAQ/TSX: BITF) 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 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_io
https://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
- w/TH = Watts/Terahash efficiency (includes cost of powering supplementary equipment
- Synthetic HODL™ = the use of instruments that create bitcoin equivalent exposure
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 projected growth, target hashrate, opportunities relating to the Company’s geographical diversification and expansion, upgrading and deployment of miners as well as the timing therefor, improved financial performance and balance sheet liquidity, other growth opportunities and prospects, and other statements regarding future growth, plans and objectives of the Company are forward-looking information. The statements and information in this release regarding the miner equipment purchases, contracted delivery and proposed deployment plans, performance of the equipment and the impact on operating capacity including target hashrates and hashrate growth in general, energy efficiency and cost savings, 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, 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; 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 Relations
David Barnard
+1 415-433-3777
Investors@bitfarms.com
Actual Agency
Khushboo Chaudhary
+1 646-373-9946
mediarelations@bitfarms.com
Québec Media: Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca
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