Bitfarms Ltd. - BITF STOCK NEWS

Bitfarms (Nasdaq/TSX: BITF) has filed an amended and restated prospectus supplement dated October 4, 2024, updating its existing US$375 million at-the-market (ATM) equity offering program. This amendment is required due to the proposed Stronghold Digital Mining acquisition. The ATM program, established with H.C. Wainwright & Co., as agent, allows Bitfarms to sell common shares at its discretion, with US$127 million remaining available.

To date, 109,323,321 Common Shares have been distributed for gross proceeds of approximately US$248 million. The company intends to use the net proceeds primarily for capital expenditures to support growth and development of existing mining operations, as well as for working capital and general corporate purposes. Sales will be made on the Nasdaq Stock Market at prevailing market prices, with no offerings on the TSX or in Canada.

Bitfarms (NASDAQ/TSX: BITF) released its September 2024 production report, highlighting key achievements and operational updates. The company reached its end-of-year efficiency target of 21 w/TH three months ahead of schedule, potentially increasing gross data center profitability. Bitfarms signed a hosting agreement with Stronghold Digital Mining to accelerate the deployment of 10,000 Bitmain T21 miners, expected to add ~2.2 EH/s to operational capacity.

In September, Bitfarms earned 217 BTC, a 7% decrease from August due to increased Bitcoin difficulty. The company's operational hash rate reached 11.3 EH/s, up 85% year-over-year. Bitfarms sold 173 BTC for $10.5 million and increased its HODL to 1,147 BTC. Total liquidity stood at $146 million, including $73 million in cash. The company remains on track to achieve 21 EH/s in the coming months and aims to double its operating capacity in 2025.

Riot Platforms, Inc. (NASDAQ: RIOT) has issued a press release regarding a settlement agreement with Bitfarms (NASDAQ/TSX: BITF). Key points include:

• Andrés Finkielsztain resigned from Bitfarms' Board of Directors
• Amy Freedman was appointed to the Board and various committees
• Riot withdrew its requisition for a special meeting of Bitfarms shareholders

Riot currently owns 90,110,912 common shares of Bitfarms, representing approximately 19.9% of the issued and outstanding shares. Riot intends to review its investment in Bitfarms continuously and may increase or decrease its position based on various factors.

Bitfarms and Riot have reached a settlement agreement ahead of Bitfarms' Special Meeting of Shareholders. Key points include:

1. Andrés Finkielsztain steps down from Bitfarms' Board
2. Amy Freedman appointed to Bitfarms' Board
3. Riot withdraws its June 24, 2024 requisition
4. Shareholders to vote on expanding Board from 5 to 6 members
5. Riot agrees to standstill provisions through Bitfarms' 2026 Annual Meeting
6. Bitfarms grants Riot certain share purchase rights

The Special Meeting may be delayed but will be held no later than November 20, 2024. Both companies express satisfaction with the agreement, focusing on shareholder value creation and strategic growth.

Bitfarms (NASDAQ/TSX: BITF) has entered into a miner hosting agreement with Stronghold Digital Mining Hosting, , a subsidiary of Stronghold Digital Mining, Inc. (NASDAQ: SDIG). The agreement involves accelerating the deployment of 10,000 Bitmain T21 miners to Stronghold's Panther Creek site in Pennsylvania, bringing 2.2 EH/s online in October 2024, two months ahead of schedule. This strategic move aims to optimize assets and control power costs, Bitfarms' top expense. The agreement runs until December 31, 2025, with automatic one-year renewals. Bitfarms will pay Stronghold 50% of the profit generated by the miners, subject to adjustments. Bitfarms also deposited $7.8 million with Stronghold as a refundable power cost estimate.

Bitfarms (Nasdaq/TSX: BITF) has announced key enhancements to its Operations teams. Alex Brammer has been appointed Senior Vice President of Global Mining Operations, while Benoit Gobeil has been promoted to Chief Infrastructure Officer. The company's Mining Operations will be split into two divisions: Mining Operations and Infrastructure.

Mr. Brammer, with 20 years of international operations expertise, will lead the Mining Operations team, focusing on miner performance, upgrades, and hashrate. Mr. Gobeil will head the Infrastructure team, overseeing construction, expansion, upgrades, and maintenance. Both will report directly to CEO Ben Gagnon.

These changes aim to deliver greater scalability and accountability in data center operations and lay the foundation for HPC/AI operations. Bitfarms is on track to double its operating capacity next year, targeting 35 EH/s+ in 2025.

Bitfarms (NASDAQ/TSX: BITF) has rescheduled its Special Meeting of shareholders from October 29, 2024, to November 6, 2024. This meeting is in response to a requisition made by Riot Platforms, Inc., a direct competitor. The delay allows Bitfarms' Special Committee more time to review Riot's Amended Requisition and for shareholders to evaluate their voting decision.

The Bitfarms Board emphasizes acting in the best interests of all shareholders, contrasting with Riot's focus on its own shareholders. To avoid a costly proxy contest, Bitfarms has proposed a settlement agreement to Riot, including adding one mutually agreed Board nominee and implementing standstill provisions.

The Special Meeting will be held in-person with a live audio webcast option. Shareholders will receive detailed information about the Amended Requisition and other matters to be voted on in a management information circular before the meeting.

Bitfarms (Nasdaq/TSX: BITF), a global Bitcoin data center company, is set to participate in the H.C. Wainwright 26th Annual Global Investment Conference from September 9-11 in New York City. CEO Ben Gagnon will join a Bitcoin Mining Panel on September 10th at 11:00am Eastern, alongside CEOs from Bit Digital, CleanSpark, Core Scientific, and Marathon Digital Holdings, moderated by Anthony Scaramucci.

Additionally, Gagnon and CFO Jeff Lucas will deliver a Company Presentation on September 10th at 3:30pm Eastern. The presentation will be available via webcast, with a replay accessible on Bitfarms' investor site. Investors can arrange 1x1 meetings through H.C. Wainwright representatives or by contacting investors@bitfarms.com.

Bitfarms (NASDAQ/TSX: BITF) has issued a statement addressing misleading claims from Riot Platforms, Inc. regarding an upcoming special meeting. Bitfarms asserts that Riot's actions are aimed at acquiring Bitfarms at a discounted price, benefiting Riot shareholders rather than Bitfarms'. The company emphasizes that recent Board and leadership changes were made independently to enhance shareholder value.

Bitfarms highlights its proposed acquisition of Stronghold, which aligns with its strategy to diversify power access and rebalance its energy portfolio towards the U.S. This transaction could add up to 307 MW of power capacity, potentially increasing Bitfarms' energy portfolio to over 950 MW, with nearly 50% in the U.S., by year-end 2025. The company remains committed to delivering exceptional value to shareholders in both the near and long term.