Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global vertically
integrated Bitcoin mining company, confirmed the receipt of the
necessary power permits to expand production up to 100 MW at its
Rio Cuarto, Argentina facility. This is expected to initially
double the active capacity to 18 MW and increase the Company’s
operational hashrate to 5 EH/s. The major milestones follow:
- During the week of April 17th, racked 2,100 new miners that
were delivered earlier in March and April.
- On April 21st, the private power producer became fully
permitted to provide up to 100 MW and enabling Bitfarms to commence
purchasing low-cost power under its purchase agreement.
- On April 23rd, Bitfarms finished testing of the Rio Cuarto
substation which is now online and capable of delivering 120
MW.
- By April 28th, Bitfarms expects to increase active capacity
over 100% to 18 MW by:
- Energizing 2,100 additional miners that are racked and
ready,
- Ending the underclocking of existing miners in line with
improved economics.
Geoff Morphy, CEO of Bitfarms, said, “This
coming week, at our Rio Cuarto farm, by energizing 2,100 additional
miners and ending our underclocking of existing miners, we expect
to add 250 PH/s, increasing our total hashrate to 5 EH/s. With the
power permit in place, we can now draw power under our contracted
agreement currently expected to be below $0.03 per kWh, which is
currently the lowest rate in Bitfarms’ portfolio. As such, we
expect the cost of BTC mined at this farm to substantially decrease
as we actively scale up operations at the first warehouse. With 210
MW of potential low-cost energy capacity, our Argentina operations
will increase Bitfarms’ total production and should lower our total
production costs while providing future expansion
opportunities.”
Ben Gagnon, Bitfarms Chief Mining Officer,
added, “In anticipation of the power permit approval, we recently
purchased over 6,200 new Bitmain and MicroBT miners to fill out an
additional 22 MW in the first warehouse at Rio Cuarto. These new
miners will be in transit shortly and are expected to produce an
additional 650 PH/s with 31 w/TH efficiency. When installed, these
new miners are projected to improve the overall w/TH efficiency at
our Argentine farm by 10% to 34 w/TH, which in the coming months
should increase the farm’s total hashrate to 1.1 EH/s and Bitfarms’
total hashrate to 5.7 EH/s. As a result, we expect Rio Cuarto will
be our largest and lowest operating cost farm upon full deployment.
We are working on additional orders to fully utilize the 50 MW of
built capacity at this warehouse.”
Jeff Lucas, CFO of Bitfarms, said, “Our
financial strategy focuses on prudent and responsible growth with a
disciplined approach to evaluating alternatives that deliver
competitive returns on investment. We used a combination of cash
and vendor credits to purchase new miners at $14.10/Th. At this
favorable pricing, this is a highly accretive transaction projected
to have a rapid payback period and to improve overall gross
margins, profitability, and operating cash flow.”
Bitfarms’ Power Purchase Agreement and
Facilities in Rio Quarto, Argentina
Electricity under Bitfarms’ Argentinian power
purchase agreement affords low-cost, utility-grade, and highly
reliable electricity directly from the private power producer. The
Company currently has a fully built 50 MW farm which is now
permitted to draw power under this agreement. It also has the
opportunity to draw 50 MW of additional power under this agreement
should it build its second 50 MW facility, and it retains the
option to build out other facilities to the full contracted amount
of 210 MW. The Rio Cuarto substation that was commissioned on
Sunday is fully constructed, operational and capable of delivering
120 MW without further capital expenditure.
About Bitfarms Ltd.
Founded in 2017, Bitfarms runs vertically
integrated mining operations with in-house management and
company-owned electrical engineering and services,
design-build-construct infrastructure capabilities, and multiple
onsite technical repair centers. The Company’s proprietary data
analytics software system delivers best-in-class operational
control, performance and uptime.
Bitfarms has 10 mining facilities 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
- w/TH = Watts per Terahash
- KWh = Kilowatt per hour
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 achievement of certain operational and production
milestones at its facilities in Argentina and the financial and
other benefits to the Company of its investments in those
facilities, equipment installation and optimization, the
availability of electrical power at reasonable rates, equipment
installation and optimization, the potential for future growth, 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”, “should”,
“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 and approvals; 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
Argentina Media: Agora Public
Affairs Wendy Pasten+54 011 6110
6114wendy.pasten@agorapublicaffairs.com
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