Mr. Geoff Morphy reports

BITFARMS EARNS 392 BTC IN NOVEMBER 2023

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

"In November, we delivered solid performance in the face of network difficulty increases from more miners coming on-line going into the 2024 halving and, in anticipation of the halving, we initiated our 2024 transformative fleet upgrade plan. We placed a firm purchase order for 35,888 high-performance Bitmain T21 miners, which are scheduled for deliveries from March, 2024, to May, 2024," said Geoff Morphy, chief executive officer of Bitfarms. "Deploying these new miners at seven of our eight existing farms in Quebec in conjunction with the development of our new Paso Pe, Paraguay, site, we expect to increase our operating capacity 29 per cent to 310 MW [megawatts] and our hashrate 88 per cent to 12 EH/s [exahashes per second] in H1 2024. With a contract price of $14.00/TH [terahash] and advanced high-energy features applying to the purchase order, and the option in H2 2024 for 28,000 additional miners, these next-gen miners will drive significant efficiencies throughout our portfolio and generate improved profit margins."

Ben Gagnon, chief mining officer of Bitfarms, said: "With our upgrade path, we are positioned to dramatically grow hashrate in H1 2024 as we receive and install one of the largest fleets of air-cooled miners currently made. We have matched timely capital allocation with a strategic miner deployment schedule that aligns well with the upcoming halving, ensuring our halving readiness and positioning us to benefit significantly from the anticipated bitcoin bull market."

Mining review

November production of 392 bitcoin (BTC) declined 1.5 per cent from October as network difficulty increased 19 per cent in November compared with 9.4 per cent in October, reflecting the continuing strong demand for miners going into the 2024 halving. For the 11 months ended Nov. 30, network difficulty increased 92.2 per cent while the BTC price was up approximately 128.4 per cent, resulting in a 33.9 per cent improvement in production economics as measured by United States dollars/TH/day.

November, 2023, select operating highlights:

• 6.4 EH/s on-line as of Nov. 30, 2023, up 45 per cent from Nov. 30, 2022, and up 1.6 per cent from Oct. 31, 2023;
• 5.9 EH/s average on-line, same as October, 2023;
• 66.4 BTC/average EH/s, down 1.9 per cent from 67.4 in October, 2023;
• 392 BTC earned, down 1.5 per cent from October, 2023, and down 13.5 per cent from November, 2022;
• 13.1 BTC earned daily on average, equivalent to about $495,200 per day based on a BTC price of $37,800 on Nov. 30, 2023;
• Placed a firm purchase order 35,888 Bitmain T21 miners;
• Secured an option to purchase an additional 28,000 T21 miners;
• Furthered expansion at Paso Pe:
  • Finalizing an amended contract for an additional 20 MW of energy, which will support the expansion of its air-cooled warehouse operating capacity from 30 MW to 50 MW, as well as the 20 MW of hydro-miner containers on order, bringing the total farm to 70 MW;
  • Progressing on time with site construction and manufacturing of the 80 MW transformer.

November, 2023, financial update:

• Raised $44-million in gross proceeds in a private placement of common stock and warrants;
• Sold 350 BTC of the 392 BTC earned, generating total proceeds of $12.8-million;
• Added 42 BTC to treasury, increasing hold to 802 BTC, representing approximately $30.3-million based on a BTC price of $37,800 at Nov. 30, 2023;
• Held Synthetic HODL of 35 long-dated BTC call options at Nov. 30, 2023;
• Reduced total outstanding indebtedness by $1.9-million, resulting in a remaining balance of $6-million at Nov. 30, 2023.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global, publicly traded (NASDAQ/TSX: 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 onsite technical repair centers. 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 hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable, locally based, and often underutilized energy infrastructure.

We seek Safe Harbor.