Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global Bitcoin
self-mining company, provided a Bitcoin (BTC) production and mining
operations update for March 2023.
“We improved our financial position in March
2023, reflecting stable production and an increasing BTC price,”
said Geoff Morphy, CEO of Bitfarms. “During the month, we mined 424
BTC, added 30 BTC to treasury, and sold 394 BTC at an average
selling price of $24,700 per BTC, in line with improving mining
economics and lower debt obligations. Strengthening the Company’s
balance sheet and reducing debt further, we ended March with $29
million in cash and equivalents, 435 BTC in custody, $22 million in
vendor credits, and just $21 million in total indebtedness.”
Ben Gagnon, Chief Mining Officer of Bitfarms,
said, “In March, we increased BTC production 17% year-over-year,
even with energy curtailment in Quebec and Paraguay as well as
continued network growth. In Q1 2023, BTC price increased by 72%,
outpacing network difficultly growth of 32.5%. As a result,
industry mining revenue is up 31% dollars per TH in the quarter.
Continued rising difficulty levels reflect increasing investment
and bullish sentiment in the mining industry overall.”
Mining Review
Energy curtailment in Quebec moderated in March,
as warmer weather reduced the load provided back to the local power
grids. However, extreme heat in Paraguay resulted in some energy
curtailment during mid-March. Cooler temperatures arrived toward
month end in the Southern Hemisphere. The table below presents an
overview of March 2023 performance metrics as compared to both
February 2023 and March 2022.
Key Performance Indicators |
Mar. 2023 |
Feb. 2023 |
Mar. 2022 |
Total BTC Mined |
424 |
387 |
363 |
Month End Operating EH/s |
4.8 |
4.7 |
2.7 |
BTC/ Avg. EH/s |
91 |
91 |
143 |
Operating Capacity (MW) |
188 |
188 |
121 |
Hydropower MW |
178 |
178 |
121 |
Watts/Terahash Efficiency (w/TH) |
39 |
39 |
42 |
BTC Sold |
394 |
387 |
2 |
March 2023 Select Operating Highlights
- 4.8 EH/s online as of March 31, 2023, up 78% from March 31,
2022 and up 2% compared to February 28, 2023.
- 4.6 EH/s average online, compared to 4.3 EH/s in February
2023.
- 91.4 BTC/average EH/s, up marginally from 91 in February
2023.
- 424 new BTC mined, up 9.6% from March 2022 and up 16.8% from
February 2023.
- 13.7 BTC mined daily on average, equivalent to about $390,000
per day and approximately $12.1 million for the month, based on a
BTC price of $28,500 on March 31, 2023.
Gagnon added, “With an eye on continually
improving cost controls, during March we successfully piloted a new
feature in our proprietary management system to track real time
energy consumption on an individual miner basis. Real time tracking
allows for machine optimization and is scheduled to be deployed
company-wide in April.”
Bitfarms’ BTC Monthly
Production
The table below presents an overview of BTC
mined per month in each of the first three months of 2023 and 2022,
respectively.
Month |
BTC Mined 2023 |
BTC Mined 2022 |
January |
486 |
301 |
February |
387 |
298 |
March |
424 |
363 |
Total YTD |
1,297 |
962 |
March 2023 Financial Update
- Sold 394 BTC of the 424 BTC mined, generating total proceeds of
$9.7 million.
- Reduced total outstanding indebtedness by $2 million, leaving a
balance of $21 million at March 31, 2023.
- Held 435 BTC in custody, representing a total value of
approximately $12.4 million based on a BTC price of $28,500, at
March 31, 2023.
- Held $29 million in cash and cash equivalents at March 31,
2023.
- Held a $22 million credit for pre-paid deposits to be applied
against future miner purchase agreements at March 31, 2023.
Conferences and Events
Bitfarms plans to attend the following upcoming
events:
- April 27: Ladenburg Thalmann Technology Expo, New York
City
- May 18-20: BTC 2023, Miami FL
- May 18: 18th Annual Needham Technology & Media Conference,
Virtual
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global, publicly
traded (NASDAQ/TSX: BITF) Bitcoin self-mining company. Bitfarms
runs vertically integrated mining operations with in-house
management and company-owned electrical engineering, installation
service, and onsite technical repair. The Company’s proprietary
data analytics system delivers best-in-class operational
performance and uptime.
Bitfarms has 10 mining facilities around the
world, 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 renewable, 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_iohttps://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
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 ongoing operational and financial performance,
debt reduction and liquidity, management of Bitcoin holding, and
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 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, including the Company’s
ability to utilize the Company’s at-the-market equity offering
program (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; 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; share dilution
resulting from 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 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 RelationsDavid Barnard+1
415-433-3777Investors@bitfarms.com
Actual Agency Lisa Helfer+1
646-373-9946mediarelations@bitfarms.com
Québec Media: TactLouis-Martin Leclerc+1
418-693-2425lmleclerc@tactconseil.ca
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