Bitfarms Provides March 2022 Production and Mining

–  Increases Hashrate 400 Petahash to 2.7 EH/s  –

–  Secures Additional US$40 Million Draw from BTC-backed Credit Facility & Grants Stock Options  –

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated August 16, 2021 to its short form base shelf prospectus dated August 12, 2021.

TORONTO, Ontario and BROSSARD, Québec, April 01, 2022 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin self-mining company, provided a Bitcoin (BTC) production and mining operations update for March 2022.

“Adding 400 petahash per second to our hashrate in March, we are rapidly approaching our goal of 3 exahash per second (EH/s), which we expect to reach within the next week,” said Emiliano Grodzki, CEO of Bitfarms. “Driving the increase in our hashrate was the addition of one of our new Sherbrooke locations, phase one of The Bunker, which was brought online in March. Another new Sherbrooke location, Leger, is on the verge of starting production that will immediately boost our hashrate over our 3 EH/s goal.”

“Daily BTC production has increased as a result and as of today averages 12.5 (BTC) per day,” added Grodzki. “This is up 18% from our February average and equates to about US$575,000 in daily revenue at the current BTC price of US$46,000.”

Mining Production

• 2.7 EH/s online, up from 2.3 EH/s as of February 28, 2022.
• 363 new BTC mined during March 2022, up 64% from March 2021.
• 11.7 BTC mined daily on average in March, equivalent to about US$538,000 per day and approximately US$16.7 million for the month based on a BTC price of US$46,000 on March 31, 2022.
• 360 BTC from mining deposited into custody in March.
• 5,243 BTC in custody at March 31, 2022, representing a total value of approximately US$244 million based on a BTC price of US$46,000.

Mining Operations

• Nearly 11,000 new Bitcoin miners capable of over 1 EH/s have been received or are in transit.
• Commenced production at The Bunker in the City of Sherbrooke, Québec, adding capacity of 12 MW with the installation of over 3,000 new miners, adding over 300 PH/s to Bitfarms’ online hashrate.
• Acquired an additional location, known as Garlock, in the City of Sherbrooke, to develop an 18 MW facility intended to replace the existing de la Pointe facility scheduled to be retired in February 2023.
• Neared completion of the first 16 MW of capacity at the Leger site in Sherbrooke, which is scheduled to be online within a week. When operational, Leger will immediately utilize over 4,000 new miners and add more than 400 PH/s to Bitfarms’ online hashrate.
• Installed 1,400 used Bitcoin miners at the Company’s Paraguay farm, bringing hashrate at this farm to 105 PH/s as of today.

$100 Million BTC-Backed Credit Facility

On March 31, 2022, the Company made an additional draw of US$40 million from its US$100 million credit facility with Galaxy Digital LLC, originally announced on December 31, 2021 (the “March Draw”). This is a revolving, multi-draw credit facility that automatically renews annually. Bitfarms made an initial US$60 million draw on December 30, 2021, with a six-month term at an interest rate of 10.75% per annum, and the March Draw is provided on the same terms.

“The additional US$40 million has been drawn as part of our diversified financing strategy and is one source of non-dilutive capital to fund our 2022 growth plan,” said Jeff Lucas, CFO of Bitfarms.

Grant of Options

On March 31, 2022, options to purchase an aggregate of 120,000 common shares were granted to an officer pursuant to the Company’s Long Term Incentive Plan. The Options are exercisable into common shares of the Company at a price of CAD$4.71 per share for a period of five years from the date of grant and are subject to vesting conditions.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global Bitcoin self-mining company, running vertically integrated mining operations with onsite technical repair, proprietary data analytics and Company-owned electrical engineering and installation services to deliver high operational performance and uptime.

Having demonstrated rapid growth and stellar operations, Bitfarms became the first Bitcoin mining company to complete its long form prospectus with the Ontario Securities Commission and started trading on the TSX-V in July 2019. On February 24, 2021, Bitfarms was honoured to be announced as a Rising Star by the TSX-V. On June 21, 2021, Bitfarms started trading on the Nasdaq Stock Market. On February 24, 2022, the Company was further honoured by the TSX-V as…