Bitfarms Earns 446 BTC in December 2023 and 4,928 BTC for the Full Year 2023

 

Source:  Bitfarms Ltd. 1/2/2024

 - Increases hashrate 44% YOY to 6.5 EH/s at Dec. 31, 2023, exceeding guidance -
- 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 -

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 $118 million in liquidity, low-cost power contracts for up to 593 MW and a miner purchase agreement for up to 63,888 new Bitmain miners in 2024,” said Geoff Morphy, CEO of Bitfarms. “Nearly 70% of new miners will be deployed in our existing US and Canadian farms with the remaining miners earmarked for the Paso Pe, Paraguay expansion, which is currently running ahead of schedule. We are well underway to achieve our Q2 2024 goals of 12 EH/s and 310 MW operating capacity, which would represent increases of 85% and 29%, respectively, compared to year-end 2023. Additionally, we maintain optionality under the contract with the potential to achieve 17 EH/s and 23 w/TH fleet efficiency before the end of 2024.”

Ben Gagnon, Chief Mining Officer of Bitfarms, said, “Strong operations and uptime in December drove our average EH/s online up 5% to 6.2 EH/s, crystalizing another solid year of performance for Bitfarms. Our mining operations largely kept pace with network hashrate growth in 2023 generating a similar number of Bitcoins YOY, while successfully executing on our core focus and strategy to improve balance sheet strength and prepare for the 2024 halving. In 2024, we expect our core focus to be on executing our Bitmain T21 miner fleet upgrade plan and driving rapid improvements in hashrate and energy efficiency in H1 2024. Our proven capabilities in building and operating facilities will be fully utilized next year as we deploy our largest order of miners to date, driving energy efficiency to 25 w/TH and seeking a larger share of the Bitcoin mining network.”

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 $52 million to $118 million, ending the year with $84 million in cash, $34 million in BTC in treasury, and only $4 million in debt. Furthermore, in December, we increased our overall BTC exposure by expanding our Synthetic HODL™ portfolio by a total of 100 long-dated calls while maintaining BTC held in treasury relatively constant at 804.”

Mining Review

December production of 446 BTC represented an increase of 13.8% from November as high uptime and a surge in transaction fees of 465% offset a network difficulty increase of 6.0% during the month. For the year ended December 31^st, network difficulty increased 103.6% while the BTC price was up approximately 156.8%, resulting in a 61.4% improvement in YOY production economics as measured by USD/TH/day.

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 up 2% 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 and 10.1% 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: 26^th Annual Needham Growth Conference, New York City - management is scheduled to present at 4:30 ET on January 17^th.
• 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.