Mr. Geoff Morphy reports

BITFARMS MINES 385 BTC IN JUNE

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

"Deliveries and installations in Rio Cuarto, Argentina, continued on pace, and we remain on track to expand to our full operating capacity of 50 megawatts in Rio Cuarto and achieve 6.0 [exahashes per second] over all in [third quarter] 2023," said Geoff Morphy, chief executive officer of Bitfarms. "We continue to identify opportunities for accretive growth ahead of the halving in April, 2024. To this end, we are in the final stages of completing our acquisition in Baie-Comeau, Que. Once closed, we are positioned to move quickly with miner deployments and expect the first 11 megawatts of the 22-megawatt Baie-Comeau expansion to come on-line this year."

Ben Gagnon, chief mining officer of Bitfarms, said: "In June, BTC production was 385 as compared to 420 BTC in June, 2022, as a 47-per-cent year-over-year increase in our hash rate offset a 71-per-cent increase in network difficulty over the same period. On a sequential month-over-month basis, our corporate hash rate increased by 6 per cent from 5.0 EH/s to 5.3 EH/s. We recently purchased an additional 1,650 Bitmain S19 Pro+ miners for a competitive price of $12.98 per [terahash]. Continuing our strategy of focusing on return on investment and accreditive growth, these miners provide the optimal balance between high energy efficiency and performance without the premium pricing associated with the highest efficiency miners available on the market. These miners will be added to the 3,300 miners currently en route to Argentina, representing a total of 4,950 high efficiency miners that will soon fully utilize the 50 megawatts of infrastructure in Rio Cuarto."

"With the average BTC price of $27,600 in June, cash flow continues to be positive, both from operations and after scheduled interest and principal payments. We mined 385 BTC and sold 346 BTC, adding 39 BTC to our treasury in June and bringing the total held at month-end to 549 BTC," concluded Mr. Morphy.

Mining review

June production of 389 BTC was 16.1 per cent lower than the 459 BTC produced in May largely due to the temporary spike in transaction fees received in May along with one less production day.

Network difficulty decreased 1.1 per cent in June as the bitcoin network responded to summer heat waves. Difficulty is up 43.2 per cent year to date in 2023 while the bitcoin price is up roughly 84.3 per cent in the same period, resulting in a 31.3-per-cent improvement in mining economics as measured by U.S. dollar per terahash per day.

                         KEY PERFORMANCE INDICATORS

                                     June, 2023     May, 2023       June, 2022

Total BTC mined                             385           459              420
Month-end operating EH/s                    5.3           5.0              3.6
BTC/avg., EH/s                               77            93              128
Operating capacity (megawatts)              207           196              137
Hydro power megawatts                       178           178              137
Watts/terahash efficiency (w/TH)             39            39               41
BTC sold                                    346           414            3,352

June, 2023, select operating highlights:

• 5.3 exahashes per second on-line as of June 30, 2023, up 47 per cent from June 30, 2022, and up 6 per cent from May 31, 2023;
• 5.0 EH/s average on-line, up 2.0 per cent from May, 2023;
• 76.7 BTC per average EH/s, down 17.2 per cent from 92.6 in May, 2023;
• 385 BTC mined, down 8.3 per cent from June, 2022, and 16.1 per cent from May, 2023;
• 12.8 BTC mined daily on average, equivalent to about $390,400 per day and approximately $11.7-million for the month, based on a BTC price of $30,500 on June 30, 2023;
• Purchased 6,310 Bitmain S19 Pro+, S19 j Pro and MicroBT M50S+ miners with a blended energy efficiency of 28. watts per terahash and a combined hash rate of 748.5 petahashes per second for $13.68 per TH;
• In Rio Cuarto, Argentina:
  • Installed 2,900 MicroBT miners in June;
  • Expect to receive and install another 4,950 new miners in July and August;
• Continued executing Baie-Comeau acquisition representing 22 megawatts of hydro power capacity, which is expected to close in early July, 2023.

Bitfarms' BTC monthly production

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

                    MONTHLY PRODUCTION

Month              BTC mined 2023        BTC mined 2022

January                       486                   301
February                      387                   298
March                         424                   363
April                         379                   405
May                           459                   431
June                          385                   420
Total YTD                   2,520                 2,218

June, 2023, financial update:

• Sold 346 BTC of the 385 BTC mined, generating total proceeds of $9.5-million;
• Reduced total outstanding indebtedness by $1.8-million with a remaining balance of $15.5-million at June 30, 2023;
• Added 39 BTC to treasury, increasing custody to 549 BTC, representing approximately $16.7-million based on a BTC price of $30,500 on June 30, 2023;
• Held $30-million in cash and cash equivalents at June 30, 2023;
• Held $19-million in remaining credits for prepaid deposits to be applied against future miner purchase agreements at June 30, 2023.

Conferences and events

Bitfarms plans to attend the following coming event:

• Sept. 11 to Sept. 13, HC Wainwright Conference, New York.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global, publicly traded (Nasdaq/Toronto Stock Exchange: BITF) 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 analytic 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.