Mr. Geoff Morphy reports

BITFARMS EARNS 398 BTC IN OCTOBER 2023

Bitfarms Ltd. has provided a monthly update for October, 2023.

"In October, we increased our hash rate to 6.3 exahashes per second as we completed energization of our Baie-Comeau, Que., facility at 11 megawatts and boosted Rio Cuarto from 51 MW to 54 MW. We ended October with 240 MW of operating capacity, up 31 per cent from a year ago," said Geoff Morphy, chief executive officer of Bitfarms. "With long-term and low-cost energy contracts totalling 574 MW, we still have significant room to expand our portfolio and build new farm infrastructure that would more than double our current 240 MW in production.

"We've been steadfast this year in increasing our financial flexibility and strengthening our balance sheet while executing our 2023 growth plan. We have cost-effectively grown our hash rate and farm infrastructure while prudently paying down debt. Our disciplined strategy of carefully timing fleet upgrades has embedded optionality as next-generation miners coming to market now could generate dramatic production increases at our existing state-of-the-art facilities. In short, we are well positioned to invest for the remainder of 2023 and into 2024 and take advantage of disruptive opportunities around the April halving," added Mr. Morphy.

Ben Gagnon, chief mining officer of Bitfarms, said: "With Argentina and Baie Comeau now fully operational, we have executed on our 2023 growth plan. As we look to 2024 and the halving, we are paying close attention to the rapid growth of network hash rate which historically has preceded many bull runs. On cue, network difficulty is up 9.4 per cent during the month, outpacing hash rate growth of 3.2 per cent. Anticipating that these macro conditions were likely to occur, we remained disciplined in our approach to growth and capital expenditures, which has made us well positioned to take full advantage of the acquisition of new-gen miners announced on Oct. 2, 2023."

Mining review

October production of 398 bitcoin declined 3.2 per cent from the 411 bitcoin earned in September as network difficulty increased 9.4 per cent in October compared with 2.7 per cent in September, reflecting the continuing strong demand for miners going into the 2024 halving. For the 10 months ended Oct. 31, 2023, network difficulty increased 76.6 per cent while the bitcoin price was up approximately 107.8 per cent, resulting in a 23.3-per-cent improvement in production economics as measured by U.S. dollars per terahash per day.

October, 2023, select operating highlights:

• 6.3 EH/s on-line as of Oct. 31, 2023, up 50 per cent from Oct. 31, 2022, and up 3.0 per cent from Sept. 30, 2023;
• 5.9 EH/s average on-line, up 1.0 per cent from September, 2023;
• 67.4 bitcoin per average EH/s, down 4.3 per cent from 70.4 in September, 2023;
• Bitcoin earned down 3.2 per cent from September, 2023, and down 18.1 per cent from October, 2022;
• 12.8 bitcoin earned daily on average, equivalent to about $437,800 per day and approximately $13.6-million for the month based on a bitcoin price of $34,200 on Oct. 31, 2023;
• Installed 2,100 miners;
• At Paso Pe, Paraguay, civil work and construction continued to advance on schedule;
• At Rio Cuarto, Argentina:
  • Increased capacity by three MW to 54 MW and hash rate to 1.6 EH/s;
• At Baie-Comeau, Que.:
  • Completed remaining installations and ramped phase 1 operating capacity to its full 11 MW.

Bitfarms' bitcoin monthly production

An attached table presents an overview of bitcoin earned in each of the first 10 months of 2023 and 2022, respectively.

October, 2023, financial update:

• Sold 341 bitcoin of the 398 bitcoin earned, generating total proceeds of $10-million;
• Added 57 bitcoin to treasury, increasing its holdings to 760 bitcoin, representing approximately $26-million based on a bitcoin price of $34,200 at Oct. 31, 2023;
• Initiated the company's Synthetic HODL strategy with the purchase of 35 long-dated bitcoin call options;
• Reduced total outstanding indebtedness by $1.9-million, resulting in a remaining balance of $7.9-million at Oct. 31, 2023.

Conferences and events

Bitfarms plans to attend the following coming events:

• Nov. 14, 2023: Benzinga Future of Crypto -- New York;
• Nov. 16, 2023: Blockchain Jungle -- San Jose, Costa Rica.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global, publicly traded bitcoin mining company that contributes its computational power to one or more mining pools from which it receives payment in bitcoin. 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.

We seek Safe Harbor.