Mr. Geoff Morphy reports

BITFARMS INITIATES DEPLOYMENT PLAN FOR 50 MW OF HYDROPOWER IN PARAGUAY

Bitfarms Ltd. has initiated its first phase of development for its recently acquired 150-megawatt hydro power contracts in Paraguay announced July 19, 2023. Bitfarms will be building a new 50-megawatt farm at Paso Pe, Paraguay, which is located in close proximity to its Villarrica, Paraguay, facility, and it expects its new farm to be fully commissioned at 50 megawatts in first quarter 2024.

"Achieving high operating efficiencies while minimizing [capital expenditures] is an overarching goal in our global growth strategy heading into next year's halving. Based on our experience in the jurisdiction, Paraguay affords both low building costs and fast time to completion," said Geoff Morphy, chief executive officer of Bitfarms. "We will construct a 50-megawatt substation to power a 30-megawatt air-cooled warehouse and install 20 megawatts of containers specifically built for MicroBT M53S+ hydro-cooled miners, all of which are being purchased with vendor credits. These credits significantly reduce our overall cash outlay and will leverage cash-on-cash returns."

Ben Gagnon, chief mining officer of Bitfarms, added: "This marks our first deployment of hydro-cooled mining technology that has the potential to be less expensive than immersion technology. We look forward to integrating and quickly gaining experience with this new hydro-cooled technology in a cost-effective manner. As the 1,920 M53S+ are expected to produce an impressive 675 petahashes per second with 28.5-watt-per-terahash efficiency, they are projected to be some of the highest performance miners in our fleet."

MicroBT equipment and miner purchases:

• Eight MicroBT 2.4-megawatt hydro containers;
• 1,920 MicroBT M53S+ hydro miners;
• 675 petahashes at 28.5 watts per terahash;
• Miners and infrastructure purchased with credits.

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 11 operating farms and two farms in development 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.