Bitfarms Operating Hashrate to Grow 35% to Over 1.3 EH/s with the Delivery of 4,500 Miners From MicroBT

TORONTO and BROSSARD, Quebec, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (“Bitfarms”, or the “Company”) (TSXV: BITF / OTC:BFARF), one of the largest, oldest and most cost-effective public bitcoin mining operations in the world, is pleased to announce we have increased our previously announced order of 3,000 MicroBT M31S+ miners by 50% to a total of 4,500 miners. These 4,500 miners will be delivered on schedule and be in production over the next 30 days.

Bitfarms’ current mining operations consists of five sites in Quebec, utilising environmentally friendly hydroelectric power. With the successful installation of these 4,500 miners, Bitfarms operational hashrate will increase 35% from 965 PH/s to 1.3 EH/s utilizing existing infrastructure. Additionally, the high efficiency of these miners will improve our overall efficiency by 12.5% to 49 w/TH, resulting in a direct reduction in Bitcoin Gross Mining Costs*. At prevailing mining difficulty levels as of February 17th, 2021, this translates to:

1. Daily production of over nine (9) Bitcoins

2. Daily Bitcoin production value over US$450,000 based on Bitcoin’s recent all time high of over US$50,000

3. Bitcoin Gross Mining Costs below US$7,000 per Bitcoin

As of Jan 1, 2021, almost all of our daily Bitcoin production has been added to our balance sheet in a Bitcoin retention pilot program. In just 46 days, this pilot program has accumulated over 250 BTC. During that period, the average daily Bitcoin price was ~$40,800. With Bitcoin recently surpassing US$50,000, Bitfarms is excited to report the early success of this program. With the addition of the new miners, the Company intends to continue to add more Bitcoin to its balance sheet at a faster pace and with lower per unit costs. Bitfarms expects to have approximately 500 BTC in the program in approximately 30 days.

The installation of these 4,500 miners will increase Bitfarms operational fleet and will maximise the utility of our current infrastructure. To prepare for future equipment purchases, Bitfarms recently began construction of Phase II at our site in Cowansville. This will expand the site capabilities from 4 MW to its full 16.7MW capacity and be able to accommodate up to 4,700 new generation miners. The buildout also includes a new repair lab and operations command center which is expected to be operational in Q2 2021.