Mr. Geoff Morphy reports

BITFARMS MINES 459 BTC IN MAY

Bitfarms Ltd. has provided a bitcoin (BTC) production and mining operations update for May, 2023.

"During May, 2023, our increased visibility into deliveries and installations in Rio Cuarto, Argentina, led us to accelerate our organic growth target of 6.0 exahashes per second from the end of Q4 2023 to the end of Q3 2023," said Geoff Morphy, chief executive officer of Bitfarms. "We are focused on organic and other growth opportunities that bring value and accretive cash flow to us ahead of the halving expected in April, 2024. Contributing to our organic growth will be reaching full production at the first 50-megawatt facility in Rio Cuarto and the first 11 megawatts of the 22-megawatt expansion in process of closing in Baie-Comeau, Que. In addition, we continue to build liquidity and remain well positioned to move quickly as attractive prospects for equipment and sites emerge."

Ben Gagnon, chief mining officer of Bitfarms, said: "In May, BTC production increased 6.5 per cent year over year, largely due to a temporary spike in BTC transaction fees. A 47-per-cent year-over-year increase in our hash rate was offset by a 65-per-cent increase in network difficulty in the same period. On a sequential month-over-month basis, our corporate hash rate held steady with 5.0 exahashes per second. Of the 6,200 miners ordered in April, 2,900 arrived in Argentina in May as expected, and the remaining 3,300 are en route."

"With the average BTC price of $27,500 in May, we continued to be cash flow positive, both from operations and after scheduled interest and principal payments. Mining 459 BTC and selling 414 BTC, we added 45 BTC to treasury in May, bringing the total held at month-end to 510 BTC," concluded Mr. Morphy.

Mining review

Network difficulty increased another 5.2 per cent in May and is up 44.9 per cent year to date in 2023, while bitcoin price is up roughly 63.5 per cent in the same period, resulting in a 26.7-per-cent improvement in mining economics as measured by U.S. dollar per terahash.

Production increased to 459 BTC, up 21.1 per cent from April, as energy curtailment in Quebec fully subsided and an additional day of production was gained with 31 days in the month of May.

May, 2023, select operating highlights:

• 5.0 exahashes per second on-line as of May 31, 2023, up 47 per cent from May 31, 2022, and comparable with April 30, 2023;
• 4.9 exahashes per second average on-line, up 4.3 per cent from April, 2023;
• 92.6 BTC per average exahash per second, up 14.9 per cent from 80.6 BTC per exahash per second in April, 2023;
• 459 BTC mined, up 6.5 per cent from May, 2022, and up 21.1 per cent from April, 2023;
• 14.8 BTC mined daily on average, equivalent to about $401,100 per day and approximately $12.4-million for the month, based on a BTC price of $27,100 on May 31, 2023.

In Rio Cuarto, Argentina:

• 2,900 MicroBT miners landed in Argentina and are scheduled to be installed in June;
• Expects to receive and install another 3,300 Bitmain miners in June;
• Continued executing Baie-Comeau acquisition, representing 22 megawatts of hydro power capacity, which remains on track to close in June, 2023.

Bitfarms' BTC monthly production

The attached table presents an overview of BTC mined per month in each of the first five months of 2023 and 2022, respectively.

May, 2023, financial update:

• Sold 414 BTC of the 459 BTC mined, generating total proceeds of $11.3-million;
• Reduced total outstanding indebtedness by $1.8-million, leaving a balance of $17.4-million at May 31, 2023;
• Added 45 BTC to treasury, increasing custody to 510 BTC, representing approximately $13.8-million based on a BTC price of $27,100 on May 31, 2023.

Conferences and events

Bitfarms plans to attend the following coming event:

• June 14 to June 15 -- Cantor Fitzgerald Technology Conference in New York.

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.

We seek Safe Harbor.