Mr. Geoff Morphy reports

BITFARMS INITIATES TRANSFORMATIVE FLEET UPGRADE THAT SUPPORTS 17 EH/S AND 391 MW IN 2024

Bitfarms Ltd. has placed a firm purchase order for 35,888 Bitmain T21 miners at a price of $2,660 per unit with deliveries scheduled from March, 2024, to May, 2024. With its recently announced financing, Bitfarms will have sufficient liquidity to complete the purchase obligations for this order. Concurrently, Bitfarms has secured a purchase option for an additional 28,000 Bitmain T21 miners. Management will discuss the 2024 transformative fleet upgrade plan on a conference call to be held on Nov. 28, 2023, at 8:30 a.m. ET.

A summary of the contracted delivery and proposed deployment plan is attached with estimated operating capacity and hash rate performance.

"We've built our world-class, scalable infrastructure in anticipation of the right time to implement a transformative equipment upgrade. Now, with the most attractive equipment pricing since 2020, we've launched our comprehensive strategy with a well-defined pathway to 17 [exahashes per second] in second half 2024 and the hardware secured for 21 EH/s in 2024," said Geoff Morphy, president and chief executive officer of Bitfarms. "In parallel with new farm development, the 35,888 Bitmain T21 miner deployment combined with our option to purchase an additional 28,000 Bitmain T21 miners are expected to increase our operating capacity 63 per cent to 391 [megawatts] and improve fleet efficiency 34 per cent to 23 [watts per terahash]. This strategy is expected to significantly increase efficiencies along with lower unit production costs and dramatic hash rate growth, positioning us well for the upcoming halving and beyond.

"In the first half of 2024, at our Paso Pe, Paraguay, facility, we expect to increase production and to expand the design from 50 MW to 70 MW, which we anticipate would boost our corporate operating capacity to 310 MW. Coupled with upgrades throughout our other farms, we are targeting to expeditiously grow our hash rate to 12 EH/s in H1 2024, a 90-per-cent increase from Nov. 27, 2023. At Yguazu, Paraguay, our plan is for an initial 80-megawatt capacity and the deployment of 70 MW of new high performance miners. As such, we expect this new phase of development in Paraguay to be a major contributor to our organic growth in [second half] 2024."

Ben Gagnon, chief mining officer of Bitfarms, said: "Our patience has paid off. These next-gen T21 miners are being purchased at a contract price of $14/TH and 190 TH/s per unit. With an ultraefficient three-phase 415-volt PSU (power supply unit) and a manufacturer-supported high energy mode, these miners are able to produce up to 233 TH/s, making them the most powerful known air-cooled bitcoin miners currently made, resulting in significant savings, including a nearly 19-per-cent cost reduction in dollar per TH with high energy mode and with significant savings throughout the supply chain.

"The high energy density of the T21 enables the upgrade of our farms, utilizing our existing infrastructure with the most competitive pricing and mining economics we have seen since 2020. We have taken full advantage by securing this competitive price to upgrade 10 of our 11 farms and energize all our contracted MW under development. With this upgrade, we believe we will leapfrog ahead of the network difficulty curve by driving rapid and meaningful improvements in hash rate, energy efficiency and costs per BTC, positioning us to thrive through the halving and capture upside from rising bitcoin prices and mining economics," Mr. Gagnon concluded.

Conference call on Nov. 28, 2023, at 8:30 a.m. ET

Management will host a conference call on Tuesday, Nov. 28, 2023, at 8:30 a.m. ET, to update investors on today's announcement. Following management's formal remarks, there will be a question-and-answer session.

Conference call access

Participants are asked to preregister for the call.

Please note that registered participants will receive their dial-in number upon registration and will dial directly into the call without delay. Those without Internet access or unable to preregister may dial in by calling the following: 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Bitfarms call.

The conference call will also be available through a live webcast.

A webcast replay of the call will be available approximately one hour after the end of the call and will be available for one year. A telephonic replay of the call will be available through Dec. 5, 2023, by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) or Canada (toll-free) 855-669-9658 and using access code 1239167. A presentation will be available on Tuesday, Nov. 28, 2023, under the investors section of the Bitfarms website.

About Bitfarms Ltd.

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