Bitfarms Adjusts HODL Strategy


Bitfarms Ltd.

– Pay BTC Repayment Credit Facility $ 38 Million –
– Currently has a total of 3,349 BTC –
– Daily BTC output of approximately 14 BTC adds more liquidity –

This press release constitutes a “designated press release” for the purposes of the Company’s August 16, 2021 brochure supplement to its August 12, 2021 summary basic prospectus.

TORONTO, Ontario and BROSSARD, Quebec, June 21, 2022 (GLOBE NEWSWIRE) – Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a global Bitcoin automotive company, has adjusted its HODL strategy to improve liquidity and strengthen its balance sheet.

Over the past week, Bitfarms has sold a total of 3,000 Bitcoin (BTC) for approximately $ 62 million and closed its previously announced $ 37 million in financing new equipment with NYDIG ABL LLC (NYDIG) improving corporate liquidity by approximately 100 million dollars. This raises BTC’s total holdings to 3,349, including monthly production to date, which currently averages about 14 BTC per day. Bitfarms has applied a portion of the proceeds to rebalance its debt by reducing its BTC-backed credit facility with Galaxy Digital LLC (Galaxy) another $ 28 million from $ 66 million to $ 38 million.

“In view of the extreme volatility of the markets, we continue to take steps to improve liquidity and to deleverage and strengthen our balance sheet. Specifically, we sell 1,500 more Bitcoins and no longer HODLing all our daily BTC production,” said Jeff Lucas, CFO of Bitfarms. “While we remain optimistic about the long-term appreciation of the BTC price, this strategic change allows us to focus on our top priorities of maintaining our world-class mining operations and continuing to grow our business in anticipation of an improvement in the mining economy.”

“Since January 2021, we have been financing operations and growth through various financing measures. We believe that selling a portion of our holdings in BTC and daily production as a source of liquidity is the best and least expensive method in today’s market environment, “added Lucas.

As of June 20, 2022, Bitfarms had $ 42 million in cash and 3,349 BTC valued at approximately $ 67 million at a price of $ 20,000 in BTC. Bitfarms fulfills all its credit obligations.

About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin automotive company, performing vertically integrated mining operations with on-site technical repair, proprietary data analysis, and company-owned electrical installation and engineering services to deliver high operating performance and lead time. activity.

After demonstrating rapid growth and stellar operations, Bitfarms became the first Bitcoin mining company to complete its long prospectus with the Ontario Securities Commission and began trading on the TSX-V in July 2019. On February 24, 2021 , Bitfarms had the honor of being announced. as Rising Star by the TSX-V. On June 21, 2021, Bitfarms began trading on the Nasdaq stock market. On February 24, 2022, the company was awarded by the TSX-V as Venture 50 Winner, the first place in the Technology sector. On April 8, 2022, Bitfarms upgraded the list from TSX-V to TSX.

Operationally, Bitfarms has a diversified production platform with seven industrial-scale facilities located in Quebec, one in Washington state and one in Paraguay. Each facility is 99% powered by environmentally friendly hydropower and secured with long-term energy contracts. Bitfarms is currently the only publicly traded pure mining company audited by a Big Four accounting firm.

For more information on Bitfarms events, developments, and online communities:

Website: www.bitfarms.com

https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/

Precautionary statement
The Company’s stock trading should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein. Neither the Toronto Stock Exchange, the Nasdaq nor any other stock exchange or regulatory authority accept responsibility for the adequacy or accuracy of this version.

Prospective statements
This press release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates, and projections as of the date of this press release and are covered by insurance. ports under the securities laws of Canada and the United States. The information in this statement about the expectations regarding the benefits of completing a debt reduction program financed by the sale of BTC, entering an equipment financing facility and other future plans and objectives of the Company is information for the future. Other forward-looking information includes, but is not limited to, information regarding: the Company’s future intentions, plans and actions, as well as Bitfarms’ ability to successfully extract digital currency, revenue growth as currently planned, and ability to settle profitably. current and future digital currency inventory, network difficulty volatility and digital currency prices, and potential significant negative impact on Company operations, construction and operation of expanded blockchain infrastructure as currently planned, and environment regulations for cryptocurrency in the applicable jurisdictions.

Any statement that involves discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, future events, or performance often, but not always, using phrases such as “wait” or “don’t wait” , “anticipate” or “do not anticipate”, “plan”, “budget”, “scheduled”, “forecast”, “estimate”, “believe” or “intend” or variations of such words and phrases or stating that certain actions, events or results “could” or “could”, “could”, “could” or “be” that occur or will be achieved) are not statements of historical facts and may be forward-looking information and are intended to identify the future. – look for information.

This forward-looking information is based on assumptions and estimates of the Company’s management at the time it was made, and involves known and unknown risks, uncertainties and other factors that may substantially substantiate the Company’s actual results, performance or achievements. different from any future result, performance or achievement expressed or implied by such forward-looking information. Such factors include, but are not limited to, risks related to: the global economic climate; dilution; limited operating history of the Company; future capital requirements and additional financing uncertainty, including the Company’s ability to use the Company’s market offering (the “ATM Program”) and the prices at which the Company may sell Ordinary Shares in the ATM Program, as well as capital. general market conditions; risks related to the strategy of maintaining and increasing Bitcoin holdings and the impact of the depreciation of Bitcoin prices on working capital; the competitive nature of the industry; exchange rate risks; the need for the Company to manage its projected growth and expansion; the effects of product development and the need for continuous technological change; the ability to maintain reliable and cost-effective energy sources to run their cryptocurrency mining assets; the impact of energy reduction or regulatory changes on energy regimes in the jurisdictions in which the Company operates; protection of property rights; the effect of government regulation and compliance on business and industry; network security risks; the Company’s ability to maintain properly functioning systems; dependence on key personnel; the deterioration of world economic and financial markets that hinders access to capital or increases the cost of capital; the dilution of shares resulting from the ATM Program and other capital issues; and volatile securities markets that affect stock prices unrelated to operating performance. In addition, particular factors that could affect the future performance of Bitfarms’ business include, but are not limited to: the construction and operation of the facility may not occur as currently provided, or may not occur at all; expansion may not materialize as currently anticipated, or may not materialize at all; the digital currency market; the ability to successfully extract digital currency; revenues may not increase as currently expected, or may not increase at all; it may not be possible to profitably liquidate the current digital currency inventory or anything; a decline in digital currency prices could have a significant negative impact on operations; an increase in network difficulty can have a significant negative impact on operations; the volatility of digital currency prices; projected growth and sustainability of hydropower for the purposes of cryptocurrency mining in applicable jurisdictions; the inability to maintain reliable and cost-effective energy sources for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company’s electricity costs, the cost of natural gas, changes in exchange rates, a reduction in energy or regulatory changes in energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company’s profitability. ; the ability to complete current and future financing, any regulations or laws that prevent Bitfarms from operating its business; the historical prices of digital currencies and the ability to extract digital currencies that will be consistent with historical prices; the inability to anticipate and counteract the effects of COVID-19 on the Company’s business, including, but not limited to, the effects of COVID-19 on the price of digital currencies, capital market conditions, work restriction, and international travel and supply chains. ; and, the adoption or extension of any regulations or laws that prevent Bitfarms from operating its business or making it more costly. For more information on these and other risks and uncertainties, see the company’s files at www.SEDAR.com (which are also available on the website of the United States Securities and Exchange Commission at www.sec.gov), including the annual disclosure form for December 31, 2021, filed March 28, 2022. The Company has also assumed that no significant event occurs outside the normal course of business of Bitfarms. Although the Company has attempted to identify significant factors that could cause actual results to differ materially from those set forth in the forward-looking statements, there may be other factors that may result in the results not being anticipated, estimated or anticipated. Such statements cannot be guaranteed to be accurate as actual results and future events may differ materially from those provided for in such statements. Consequently, readers should not unduly rely on any prospective information. The Company assumes no obligation to review or update any forward-looking information other than as required by law.

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Contacts:

Investor Relations:
LHA Investor Relations
David Barnard
+1 415-433-3777
Investors@bitfarms.com

American media:
YAP Global
Mia Grodsky, Account Executive
mia@yapglobal.com

Quebec media:
Ryan Public Affairs
Valérie Pomerleau, Public Affairs and Communications
valerie@ryanap.com





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