Bitfarms Announces Installed Hashrate of 1.2 EH/s and Provides Corporate Updates

TORONTO and BROSSARD, Québec, March 24, 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, today announces the successful installation and operation of its previously announced order of 4,500 MicroBT M31S+ miners, bringing the Company’s current installed hashrate to 1.2 EH/s. This 24% growth rate in a single quarter eclipses our entire 2020 growth and marks a tremendous start to 2021 for Bitfarms and our shareholders as we work to grow to 3 EH/s by the end of this fiscal year.

New Hosting Agreement

In addition to purchasing new miners, the Company has entered into a hosting agreement with Blockware Solutions and Blockware Mining in the United States. Pursuant to the agreement, Bitfarms is sending older-gen and mid-gen hardware for hosting at one of their American facilities. The hosting is being accomplished in a flexible and low-cost profit-sharing agreement powered by 100% renewable hydro energy.

This hosting agreement has enabled the Company to extend the profitability and useful lifespan of up to 250 PH/s of older and mid-generation Bitcoin Mining Equipment. This frees up its Quebec infrastructure for more efficient and profitable mining equipment. To date over 2,000 Bitmain S9, S15 and T15 mining rigs have been successfully installed at Blockware Solutions’ facility and are generating BTC. Through this upgrade process, these miners have all been replaced with new MicroBT miners that operate an average of approximately 4x more hashrate per miner located in our Quebec facilities.

The remaining equipment under this upgrade program will be deployed through Q2 and Q3 of this year. This novel agreement also enables Bitfarms to opportunistically sell older equipment out of the hosting agreement through Blockware’s broker business. This unique hosting arrangement enables Bitfarms to get the most possible value out of its used equipment while providing tremendous flexibility and increased hashrate with negligible cash expenditures.

Bitcoin Inventory Pilot Program

Since starting its Bitcoin Inventory Pilot Program in early January, the price of Bitcoin has nearly doubled from US$30,000 to a recent all-time high of over US$60,000. Through this Bitcoin Inventory Pilot Program, Bitfarms has been able for the first time to accrue those gains for the benefit of our shareholders. As a Company, we are excited to continue this program.