Bitfarms (TSX:BITF) provides October 2022 production and mining operations update

• Bitfarms has provided a Bitcoin (BTC) production and mining operations update for October 2022
• 486 new BTC mined during October 2022, up 42% from October 2021
• 4.2 EH/s online as of October 31, 2022, up 133 per cent from October 2021
• Phase 3 of The Bunker is progressing ahead of plan, with the remaining 12 MW of this farm expected to be online in December
• Sold 486 BTC during October 2022, generating proceeds of $9.57 million.
• Bitfarms is a global Bitcoin mining company with facilities in Quebec, Washington and Paraguay
• Bitfarms (BITF) opened trading at C$0.9589

Bitfarms has provided a Bitcoin (BTC) production and mining operations update for October 2022.

“In October, we progressed on schedule at our Garlock farm and expect to energize the first 6 megawatts (MW) of its planned 18 MW capacity by mid-November with full energization in December,” said Geoff Morphy, President and COO of Bitfarms.

“In addition, Phase 3 of The Bunker is ahead of plan for its final 12 MW capacity and is also expected to be completed in December. The activation of these two state-of-the-art farms will achieve our facilities’ growth and transition goal for Sherbrooke.”

“In the first ten months of 2022, we mined 4,219 BTC, up 53 per cent from 2,750 BTC mined in the first 10 months of 2021,” said Ben Gagnon, Chief Mining Officer of Bitfarms.

“With no significant additions to capacity, our October hashrate was consistent with September, and we exited the month at 4.2 exahash/second (EH/s). During October, we mined 486 BTC, averaging 15.7 BTC mined per day, and exited the month at 14.5 BTC mined per day. Overall production was impacted primarily by a 17% increase in network difficulty during the month, negatively impacting US$ per terrahash/second (TH/s). The network hashrate is now responding quickly to changes in mining economics, which is a strong indication that we have found near-term support in Bitcoin mining economics as measured by US$ Revenue per TH/s.”

Morphy added, “While we continue to make progress in Argentina, we are adjusting our December 31, 2022, corporate guidance from 6.0 EH/s to 5.0 EH/s to reflect the impact of the Country’s macroeconomic environment on our ability to import miners. Argentina is wrestling with high inflation, currency devaluation and a significant debt burden. To alleviate concerns about a drain on the Argentina Central Bank’s foreign currency reserves, trade approval for the importation of most goods, including mining and IT equipment, is being delayed, which has been adversely affecting our ability to bring in the additional 12,000 miners we need to operate the first warehouse at its full capacity of 50 MW. While we believe this restriction is temporary, we can’t project the timing of its resolution and, accordingly, have reduced our 2022 year-end corporate growth target.”

Bitfarms’ private power producer in Rio Cuarto is still awaiting approval of its final operating permit. In the meantime, the farm is drawing power during this start-up and commissioning phase from the provincial electrical utility at a higher cost than the expected contracted cost of power under its executed power purchase agreement (“PPA”). 

Select operating highlights:

• 4.2 EH/s online as of October 31, 2022, up 133 per cent from October 2021 and comparable to September 30, 2022
• 4.2 EH/s average online for the month of October
• 115 BTC/ average EH/s for the month of October, down 5.7 per cent from 122 in September 2022
• 486 new BTC mined during October 2022, up 42% from October 2021 and up 1% from September 2022
• 15.7 BTC mined daily on average in October, equivalent to about US$321,850 per day and approximately US$10.0 million for the month based on a BTC price of US$20,500 on October 31, 2022

Mining Operations:

• In Sherbrooke, Québec:
  • The Garlock farm is on track to energize the first 6 MW at the 18,000-square-foot expansion by mid-November, with the full 18 MW expected to be online ahead of schedule in December 2022.
  • Phase 3 of The Bunker is progressing ahead of plan, with the remaining 12 MW of this farm expected to be online in December.
  • The de la Pointe farm is expected to cease operations later in November, well ahead of schedule.
  • Upon the retirement of the de la Pointe farm, Sherbrooke will consist of three farms in close proximity to each other and scheduled to have 96 MW operational in December.
• In Rio Cuarto, Argentina:
  • At the first 10-MW module of the first 50-MW warehouse, additional miners were installed, bringing the total miners at this module to 2,328.
  • At the first 50-MW warehouse, the infrastructure for the four additional 10-MW modules was completed, with the construction of the fifth module slated for completion in November.

Bitfarms’ BTC monthly production:

Financial update:

• Sold 486 BTC during October 2022, generating proceeds of $9.57 million.
• Continued to deleverage the company’s balance sheet and reduce interest expense by making principal pay downs in October totalling $3.2 million and paying off our equipment term loan with the highest interest rate.
• Held 2,064 BTC in custody on October 31, 2022, representing a total value of approximately US$42.30 million based on a BTC price of US$20,500.

Bitfarms is a global Bitcoin mining company with facilities in Quebec, Washington and Paraguay.

Bitfarms (BITF) opened trading at C$0.9589.