Mr. Geoff Morphy reports

BITFARMS STARTS PRODUCTION AT BAIE-COMEAU AND INCREASES HASHRATE TARGET TO 6.3 EH/S IN Q3 2023

Bitfarms Ltd. has closed the acquisition announced on April 11, 2023, of its newest farm in Baie-Comeau, Que., and immediately started production at the site. As a result, Bitfarms increased its target hash rate to 6.3 exahashes per second by the end of Q3 2023.

"Expanding operations to 11 farms marks another major milestone for Bitfarms," said Geoff Morphy, chief executive officer of Bitfarms. "Leveraging our development expertise, we have built out Baie-Comeau infrastructure with equipment repurposed from the sale of our De La Pointe location and the cost-effective redeployment of miners from within our fleet. Baie-Comeau is positioned to deliver 22 megawatts of hydro power capacity when complete. The hashing began with an initial three megawatts, and we expect to reach 11 megawatts at the site in Q3 2023. The remaining 11 megawatts is planned to come on line in H2 2024."

Philippe Fortier, Bitfarms' senior vice-president, corporate development, stated: "This accretive transaction was completed on time and with minimal capital outlay. Consistent with our disciplined approach and with the upcoming halving in mind, we continue to pursue and evaluate similar bolt-on and larger transactions to drive growth."

Bitfarms acquired an evergreen contract with the local utility in Baie-Comeau for 22 megawatts of hydro power, which included a 10-year lease in an industrialized area with the option to purchase at a fixed price throughout the lease term. Total consideration was $2.5-million ($1.9-million (U.S.)), with $1-million ($750,000 (U.S.)), or 40 per cent paid in cash and 820,837 Bitfarms common shares, or 60 per cent, issued at a price of $1.83 per share ($1.38 (U.S.) per share).

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 11 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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