Mr. Geoff Morphy reports

BITFARMS EARNS 357 BTC IN JANUARY 2024

Bitfarms Ltd. has provided an update for the month ended Jan. 31, 2024.

"In 2024, we are embarking on an aggressive growth plan, targeting hashrates of 12 EH/s [exahash/second] in 1H 2024 and 21 EH/s in 2H 2024," said Geoff Morphy, president and chief executive officer of Bitfarms. "The new farm development in Paraguay is expected to drive much of this growth. With land purchased for our 100-megawatt facility in Yguazu and shipment of the main transformer for Paso Pe, our expansion projects continued on schedule in January. This transformative fleet upgrade and growth plan are being undertaken to position Bitfarms to gain market share and be among the lowest-cost producers during this halving year, which is anticipated to be an inflection point for the industry."

Ben Gagnon, chief mining officer of Bitfarms, said: "January mining operations generated 357 BTC compared to 446 BTC in December. This reflects the typical higher curtailment during the coldest months and a return to more normal transaction fees as compared to the temporary spike experienced in December, 2023.

"Our fleet upgrade commences with the first batch of 11,600 Bitmain T21 miners scheduled to begin shipping to Quebec in February. Our construction of air-cooled warehouses and installation of 1,920 MicroBT M53S+ hydro-cooled miners and containers at Paso Pe are scheduled for February and March, respectively. We are on track to initiate production at that farm by late Q1 2024. Those new installations along with fleet upgrades elsewhere in our portfolio throughout 1H 2024 should drive rapid increases in our hashrate and increased energy efficiency," Mr. Gagnon added.

Mining review

January production of 357 BTC represented a decrease of 20 per cent from December as powerful winter storms across North America drove significantly higher energy curtailment, which is part of the grid stability programs in Quebec, and offsetting a network difficulty decrease of 2.3 per cent during January.

January, 2024, select operating highlights:

• 6.5 EH/s on-line as of Jan. 31, 2024, up 38 per cent from Jan. 31, 2023, and level with Dec. 31, 2023;
• 5.9 EH/s average on-line, down 4.8 per cent from December, 2023;
• 60.6 BTC/average EH/s, down 15.5 per cent from 71.7 in December, 2023;
• 357 BTC earned, 20 per cent lower than December, 2023, and 26.5 per cent lower than January, 2023;
• 11.5 BTC earned daily on average, equal to approximately $495,200 per day based on a BTC price of $43,000 at Jan. 31, 2024;
• 80 MW main transformer is in transit on schedule for the Paso Pe, Paraguay, farm;
• Purchased land for development of up to 100 MW production facility at Yguazu, Paraguay.

January, 2024, financial update:

• Sold 357 BTC of the 357 BTC earned, generating total proceeds of $15.3-million;
• Maintained BTC held in treasury at 804, representing approximately $34.6-million based on a BTC price of $43,000 at Jan. 31, 2024;
• Held synthetic HODL of 135 long-dated BTC call options at Jan. 31, 2024;
• Reduced total outstanding indebtedness during the month by $2-million, resulting in a remaining balance of $2-million at Jan. 31, 2024, which is scheduled to be fully repaid in February, 2024.

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 in production, one in expansion, one under construction and one in development, 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.