Bitfarms Earns 392 BTC in November 2023

 

Source:  Bitfarms Ltd. 12/1/2023

- Miners purchased for H1 2024 upgrade plan to 12 MW -
- Increases hashrate 2% in the month to 6.4 EH/s –
- Finalizing contract to increase Paso Pe, Paraguay from 50 MW to 70 MW -

Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global vertically integrated Bitcoin mining company, provides a monthly update for November 2023.

“In November, we delivered solid performance in the face of network difficulty increases from more miners coming online going into the 2024 Halving and, in anticipation of the Halving, we initiated our 2024 transformative fleet upgrade plan. We placed a firm purchase order for 35,888 high-performance Bitmain T21 miners, which are scheduled for deliveries from March 2024 to May 2024,” said Geoff Morphy, CEO of Bitfarms. “Deploying these new miners at seven of our eight existing farms in Quebec in conjunction with the development of our new Paso Pe, Paraguay site, we expect to increase our operating capacity 29% to 310 MW and our hashrate 88% to 12 EH/s in H1 2024. With a contract price of $14.00/TH and advanced high energy features applying to the purchase order and the option in H2 2024 for 28,000 additional miners, these next-gen miners will drive significant efficiencies throughout our portfolio and generate improved profit margins.”

Ben Gagnon, Chief Mining Officer of Bitfarms, said, “With our upgrade path, we are positioned to dramatically grow hashrate in H1 2024 as we receive and install one of the largest fleets of air-cooled miners currently made. We have matched timely capital allocation with a strategic miner deployment schedule that aligns well with the upcoming Halving, ensuring our halving readiness and positioning us to benefit significantly from the anticipated Bitcoin bull market.”

Mining Review

November production of 392 BTC declined 1.5% from October as network difficulty increased 19.0% in November compared to 9.4% in October, reflecting the continuing strong demand for miners going into the 2024 Halving. For the eleven months ended November 30^th, network difficulty increased 92.2% while the BTC price was up approximately 128.4%, resulting in a 33.9% improvement in production economics as measured by USD/TH/day.

Key Performance Indicators	November 2023	October 2023	November 2022
Total BTC earned	392	398	453
Month End Operating EH/s	6.4	6.3	4.4
BTC/Avg. EH/s	66	67	105
Operating Capacity (MW)	240	240	182
Hydropower MW	186	186	172
Watts/Terahash Efficiency (w/TH)	35	35	40
BTC Sold	350	341	853

November 2023 Select Operating Highlights

• 6.4 EH/s online as of November 30, 2023, up 45% from November 30, 2022, and up 1.6% from October 31, 2023.
• 5.9 EH/s average online, same as October 2023.
• 66.4 BTC/average EH/s, down 1.9% from 67.4 in October 2023.
• 392 BTC earned, down 1.5% from October 2023 and down 13.5% from November 2022.
• 13.1 BTC earned daily on average, equivalent to about $495,200 per day based on a BTC price of $37,800 on November 30, 2023.
• Placed a firm purchase order 35,888 Bitmain T21 miners.
• Secured an option to purchase an additional 28,000 T21 miners.
• Furthered expansion at Paso Pe:
  
  
  • Finalizing an amended contract for an additional 20 MW of energy, which will support the expansion of its air-cooled warehouse operating capacity from 30 MW to 50 MW as well as the 20 MW of hydro-miner containers on order, bringing the total farm to 70 MW.
  • Progressing on time with site construction and manufacturing of the 80 MW transformer.

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
Total YTD	4,482	4,672

November 2023 Financial Update

• Raised $44 million in gross proceeds in a private placement of common stock and warrants.
• Sold 350 BTC of the 392 BTC earned, generating total proceeds of $12.8 million.
• Added 42 BTC to treasury, increasing HODL to 802 BTC, representing approximately $30.3 million based on a BTC price of $37,800 at November 30, 2023.
• Held Synthetic HODL™ of 35 long-dated BTC call options at November 30, 2023.
• Reduced total outstanding indebtedness by $1.9 million, resulting in a remaining balance of $6.0 million at November 30, 2023.
  

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.