Mr. Geoff Morphy reports

BITFARMS MARKS 21,000TH BITCOIN MINED USING ENTIRELY RENEWABLE ENERGY

In six years of operations, Bitfarms Ltd. has mined 21,000 bitcoin (BTC) with renewable hydro power.

"On May 7, 2023, Bitfarms achieved an important milestone by producing its 21,000th BTC mined with renewable power, representing one of 1,000 of all BTC to ever be mined," said Geoff Morphy, chief executive officer of Bitfarms. "Leading the industry, this accomplishment is a testament to the proven capabilities of our mining operations that have powered on average between 1 per cent and 2 per cent of the BTC network, and we are proud to have done so with sustainable hydro power."

Mr. Morphy continued: "Bitfarms recognized early on the advantages of hydro power as a renewable energy resource and its sustainable and consistent economics. Our hydro power contracts provide a low direct cost of production and deliver higher mining margins than if we prioritized exahash growth alone. Bitfarms' strategic expansions into Washington State and Paraguay are similar to our initial operations in Quebec, as we take advantage of excess hydro power infrastructure that became available with the migration of heavy industry. We have harnessed sustainable power with favourable economics for our shareholders, while simultaneously revitalizing communities with new jobs, capital investment, incremental tax revenues and upgrades to the local electrical infrastructure. We thank our shareholders, directors and team members, past and present, who made this great achievement possible."

BTC network protocol and 21 million BTC limitation

Bitcoin is a cryptocurrency that operates on a decentralized network of computers. One of its most distinctive features is that there is a maximum limit of 21 million BTC that can ever be created. This limit was built into the bitcoin protocol from the beginning and is expected to be reached in the year 2140.

As of May 7, 2023, there were approximately 19.4 million BTC in circulation, with a total value of approximately $550-billion. The remaining 1.6 million BTC are expected to be mined over the next century or so, with the rate of new BTC creation slowing down over time due to a process known as halving. The next halving event is expected to occur in the year 2024.

Having mined 21,000 BTC, Bitfarms has now produced one of every 1,000 BTC that will ever be created. With its extensive portfolio of hydro-powered operations, it has achieved this using 100 per cent renewable energy. This accomplishment has been permanently memorialized on the bitcoin blockchain at block 788,607.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global, publicly traded bitcoin mining company. Bitfarms develops, owns and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service and multiple on-site technical repair centres. The company's proprietary data analytics system delivers best-in-class operational performance and uptime.

Bitfarms currently has 10 farms, which are located in four countries: Canada, the United States, Paraguay and Argentina. Powered by predominantly environmentally friendly hydroelectric and long-term power contracts, Bitfarms is committed to using sustainable, locally based and often underutilized energy infrastructure.

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