Mr. Geoff Morphy reports

BITFARMS ANNOUNCES MARCH 2024 PRODUCTION AND OPERATIONS UPDATE

Bitfarms Ltd. has provided its monthly production report, and an update on its fleet upgrade and expansion.

Fleet upgrade review

Geoff Morphy, president and chief executive officer, said: "In March, we exercised our previously announced purchase option for 28,000 Bitmain T21 miners and purchased an additional 19,280 Bitmain T21 miners, along with 3,888 Bitmain S21 miners and 740 Bitmain S21 hydro miners.

"Having confirmed the tremendous performance of our T21 miners currently running, and with bitcoin prices reaching all-time highs, we acted quickly to secure these miners at attractive prices in advance of anticipated hardware price increases. Together, with our 35,888 Bitmain T21 purchases and farm expansions announced in November, these new 87,796 miners are sufficient to reach 21 EH/s [exahashes per second] by year-end, with greater operating efficiency.

"These orders solidify our expansion plan for 2024, and provide the pathway to operating one of the newest and potentially most-efficient mining fleets in the industry. Securing these miners is a key part of our strategy to drive rapid and meaningful improvements across three principal operating metrics of hashrate, energy efficiency and operating costs per terahash as we plan to capture greater upside from rising bitcoin prices and expanding mining margins," added Mr. Morphy.

Ben Gagnon, chief mining officer, said: "In March, we received 1,650 T21 miners with 6,400 additional miners in transit. The majority of the miners received are installed and on-line. Garlock installations are now planned for completion in the first week of April. With curtailment in Quebec and Paraguay, as well as power plant maintenance in Argentina, we had fewer miners on-line than normal, resulting in a month-end hashrate of 6.5 EH/s. We expect to achieve seven EH/s by mid-April.

"As we enter the halving, we remain focused on our 2024 transformational fleet upgrade and expansion plan, which triples our hashrate to 21 EH/s, increases our targeted operating capacity by 83 per cent to 440 MW [megawatts] and improves our fleet efficiency by 38 per cent to 21 w/TH [watt per terahash]. This marks the largest growth in the company's history and propels us toward becoming one of the industry leaders in energy efficiency. Bitfarms is well positioned, with a strong balance sheet, to execute on our growth plans and capitalize on opportunities in the upcoming bull market and beyond."

Mining review

March mining operations generated 286 BTC (bitcoin) compared with 300 BTC in February. This reflects participation in grid-stabilizing curtailment programs, power plant maintenance in Argentina, downtime associated with facility upgrades, resulting in temporary lower average operating EH/s, and a 4.8-per-cent increase in network difficulty.

March, 2024, select operating highlights:

• 6.5 EH/s on-line at March 31, 2024, up 35 per cent year-over-year (Y/Y) and unchanged from previous month;
• 5.7 EH/s average on-line, down 6.6 per cent from the previous month;
• 50 BTC/average EH/s, up 2 per cent from the previous month;
• 286 BTC earned, 5 per cent lower than previous month and 33 per cent lower Y/Y;
• 9.2 BTC earned daily on average, equal to approximately $647,700 per day based on a BTC price of $70,400 at March 31, 2024;
• 1,656 Bitmain T21 miners received with majority on-line:
• In Paraguay:
  • At Paso Pe:
    • 80 MW main transformer received and installed;
    • 3,905 Bitmain T21 miners in transit;
    • 1,920 Bitmain M53S+ hydro miners received and ready for installation upon receipt of hydro containers in mid-April.
  • At Yguazu, purchase agreements signed for all long-lead-time equipment, including large transformers, cabling and related interconnects.

March, 2024, financial update:

• Sold 284 of the 286 BTC earned as part of the company's regular treasury management process for total proceeds of $19.2-million.
• BTC held in treasury increased to 806, representing $56.7-million based on a BTC price of $70,400 at March 31, 2024.
• Held Synthetic HODL of 85 long-dated BTC call options at March 31, 2024, reflecting 50 contracts exercised at maturity prior to month-end.
• Held $66-million in cash, for total liquidity of $123-million at March 31, 2024.
• Exercised purchase option for 28,000 Bitmain T21 miners and purchased 19,280 Bitmain T21 miners, along with 3,888 Bitmain S21 miners and 740 Bitmain S21 hydro miners.
• Received $1.7-million net proceeds from the sale and leaseback of the Garlock facility, as part of the company's focus on efficient capital utilization.

Upcoming conferences and events:

• April 8 to April 9: DigitalABC's First Annual Canadian Crypto Asset and Blockchain Policy Conference, Ottawa;
• April 9: Bitcoin Policy Summit, Washington, D.C.;
• April 29 to April 30: AIM Summit, London;
• May 14 to May 15: 19th Annual Needham Technology, Media & Consumer Conference, New York;
• May 15: Digital Blockchain Summit, Washington, D.C.;
• May 22 to May 23: B. Riley Securities 24th Annual Institutional Investor Conference, Beverly Hills, Calif.

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 analytic 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.