Mr. Geoff Morphy reports

BITFARMS EARNS 300 BTC IN FEBRUARY 2024; PROVIDES UPDATE ON FLEET UPGRADE

Bitfarms Ltd. has provided a February monthly production report as well as an update on its fleet upgrade.

Fleet upgrade review

Geoff Morphy, president and chief executive officer of Bitfarms, said: "As a critical component to our growth, we are executing well against our transformational fleet upgrade and our target of 21 exahashes per year by year-end 2024. We expect the upcoming deliveries of more high-efficiency Bitman T21 miners to begin operating at our Quebec farms in March. Based on the installation schedule, we anticipate an immediate 8-per-cent increase in hash rate to seven exahashes per second and 11-per-cent improvement in energy efficiency to 31 watts per terahash.

"I personally inspected the development in Paso Pe, Paraguay, about two weeks ago. Our incredible team continues to deliver, and I am thrilled at the progress being made. The installation of eight hydro containers and 1,920 hydro miners is well under way. Four air-cooled warehouses are nearly built and almost ready to receive the initial shipment of T21 miners. We anticipate the first miners to be energized in mid-March. Upon completion, we expect Paso Pe to contribute approximately 3.2 exahashes per second with an expected efficiency of 24 watts per terahash to meet our guidance of 12 exahashes per second by the end of Q2 2024," Mr. Morphy added.

"At Yguazu, Paraguay, we signed the engineering, procurement and construction contract for the ANDE substation that is required to energize our new 100-megawatt hydro-powered project. This is expected to contribute roughly three exahashes per second at 22 watts per terahash efficiency, which contributes to our target hash rate of 17 exahashes per second in H2 of 2024 achieved through the miner purchases already announced. Combined with stated expansion, the option of miner redeployments and a few key opportunistic acquisitions, we are aiming for 21 exahashes per second by year-end 2024," Mr. Morphy explained.

Ben Gagnon, chief mining officer of Bitfarms, said: "In mid-February, we received 12 Bitmain T21 miners that we installed in Quebec for testing. During the initial two weeks, the miners proved highly efficient and, in fact, are outperforming the manufacturer's specs in both normal and high-energy modes at this time. With that initial performance data, we are even more excited about deploying our strategic fleet upgrade program to achieve our hash rate goals."

Mining review

February mining operations generated 300 bitcoin, compared with 357 bitcoin in January, reflecting participation in grid-stabilizing curtailment programs, fewer production days in February and 16.2-per-cent increased difficulty during the month. In the last few hours of February, there was a difficulty decrease of 2.9 per cent to start the month of March.

February, 2024, select operating highlights:

• 6.5 exahashes per second on-line as of Feb. 29, 2024, up 38 per cent from Feb. 28, 2023, and unchanged from Jan. 31, 2024;
• 6.1 exahashes per second average on-line, up 3.4 per cent from January, 2024;
• 49.2 bitcoin per average exahash per second, down 18.8 per cent from 60.6 bitcoin in January, 2024;
• 300 bitcoin earned, 16 per cent lower than January, 2024, and 22 per cent lower than February, 2023;
• 10.3 bitcoin earned daily on average, equal to approximately $648,900 per day based on a bitcoin price of $63,000 at Feb. 29, 2024;
• In Quebec, installed 12 Bitmain T21 miners, which in two weeks of testing are performing above manufacturer's specifications;
• In Paraguay:
  • 80-megawatt main transformer is en route to the new Paso Pe farm;
  • Signed engineering procurement and construction contract for the high-voltage interconnection to the ANDE substation and to the transmission line to energize the new 100-megawat hydro-powered project at Yguazu.

February, 2024, financial update:

• Sold 300 bitcoin of the 300 bitcoin earned, generating total proceeds of $15.1-million;
• Maintained bitcoin held in treasury at 804, representing approximately $50.7-million based on a bitcoin price of $63,000 at Feb. 29, 2024;
• Held Synthetic HODL of 135 long-dated bitcoin call options at Feb. 29, 2024;
• Paid off $2-million of indebtedness, eliminating the company's remaining debt balance.

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global 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 operating bitcoin mining facilities and two under development situated in four countries: Canada, the United States, Paraguay and Argentina. Powered predominantly by environmentally friendly hydroelectric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

We seek Safe Harbor.