Bitfarms Provides November 2022 Production and Mining Operations Update

– 453 BTC mined in November and expects to exceed 5,000 BTC mined in 2022 –
– Month-end capacity 182 megawatts, up 72% from November 2021 –
– To present at upcoming investor conferences –

This news release constitutes a “designated news release” for 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, Dec. 01, 2022 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global Bitcoin self-mining company, provided a Bitcoin (BTC) production and mining operations update for November 2022.

“Our Canadian growth and expansion continue unabated and ahead of schedule, even with the recent turmoil impacting the sector and the price of BTC,” said Geoff Morphy, President and COO of Bitfarms. “In November, we energized an additional 6 megawatts (MW) capacity at our Garlock farm. In December, we expect to complete Garlock and Phase 3 of The Bunker, bringing our total Sherbrooke operations to the full 96 MW capacity. This buildout will mark a major achievement for Bitfarms.”

“In November, we mined 453 BTC, bringing our year-to-date total to 4,672 BTC mined, up 51% from the same period in 2021,” said Ben Gagnon, Chief Mining Officer of Bitfarms. “With new capacity coming online in Sherbrooke, our November hashrate increased 5% to 4.4 exahash/second (EH/s) by mid-month, compared to 4.2 EH/s at the beginning of the month. We averaged 15.1 BTC mined per day for the full month and exited November at a similar rate, down from an average of 15.7 BTC mined per day for the month of October 2022. November production was impacted primarily by increases in network difficulty and a shorter month, which has set four all-time highs in the last six adjustments. Year to date, network difficulty is up 52% while Bitfarms’ hashrate has grown 109%. Our strategy of using low-cost hydro power and highly efficient miners continues to deliver stable electricity rates and consistently low production costs. As such, we believe that Bitfarms is well positioned to benefit from any industry-related curtailment, idling or shutting down of miners that may occur as a result of high fossil-fuel energy source expense.”

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Morphy added, “As previously discussed, Argentina’s macroeconomic environment is causing delays in the importation of most goods which is adversely affecting our ability to bring in the additional miners we need to operate the first warehouse at its full capacity of 50 MW. These delays may impact the company’s 5.0 exahash goal for year-end 2022.”

Select Operating Highlights

• 4.4 EH/s online as of November 30, 2022, up 110% from November 2021 and up 5% compared to October 31, 2022.

• 4.3 EH/s average online for the month of November.

• 105 BTC/average EH/s for the month of November, down 9% from 115 in October 2022.

• 453 new BTC mined during November 2022, up 34% from November 2021 and, reflecting the increase in network difficulty and shorter month, down 7% from October 2022.

• 15.1 BTC mined daily on average in November, equivalent to about US$258,210 per day and approximately US$7.7 million for the month based on a BTC price of US$17,100 on November 30, 2022.

Mining Operations

Bitfarms’ BTC Monthly Production

Financial Update

• Paid down $6.7 million in BTC-backed facility during November, bringing the outstanding principal to $16.5 million. Paid down $3.2 million in equipment related indebtedness.

• Sold 453 BTC from mining operations and 400 BTC from treasury during November 2022, generating total proceeds of $14.6 million.

• Held 1,664 BTC in custody on November 30, 2022, representing a total value of approximately US$28.5 million based on a BTC price of US$17,100.

Conferences and Events

Bitfarms plans to attend the following events in the next month:

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global, publicly traded (NASDAQ/TSX: BITF) Bitcoin self-mining company. Bitfarms runs vertically integrated mining operations with in-house management and company-owned electrical engineering, installation service, and onsite technical repair. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.

Bitfarms has 10 mining facilities in production around the world, which are housed in four countries: Canada, the United States,…