Mr. Ben Gagnon reports

BITFARMS PROVIDES APRIL 2024 PRODUCTION AND OPERATIONS UPDATE

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

Highlights:

• Earns 269 bitcoin in April, 2024;
• Improves corporate energy efficiency 9 per cent to 31 watts per terahash;
• Tracking to 21 exahashes per second and 21 watts per terahash in 2024 with transformative fleet upgrade;
• Expects VAT (value-added tax) refund from Canada of $23.7-million (U.S.).

Fleet upgrade review

With miner installations under way at Paso Pe and full site energization scheduled in May, the company's transformative fleet upgrade and expansion plan is on schedule to deliver 21 exahashes per second and 21 watts per terahash in 2024.

Ben Gagnon, chief mining officer, said: "In April, we fully upgraded two farms in Quebec with Bitmain T21 miners, improving energy efficiency by 51 per cent at those farms and 9 per cent on a companywide basis. Our miner upgrades are progressing at a rapid pace, with Bunker and Cowansville scheduled to be completed in May and Leger in June. The Paso Pe energization is anticipated to contribute approximately two exahashes per second at 23 watts per terahash. With these deployments, we expect to reach approximately 10 exahashes per second and 28 watts per terahash in May and remain on schedule to reach our midyear target of 12 exahashes per second and 25 watts per terahash in Q2 2024."

In addition, in April, Bitfarms achieved a favourable outcome in Quebec's VAT treatment, securing a $23.7-million (U.S.) tax refund and reducing Canadian electricity costs and capital expenditures by 15 per cent with the recovery of future VAT paid in the normal course of business. This decision provides both a near-term source of cash and a long-term reduction in operating and capital costs.

Mining review

April mining operations generated 269 bitcoin compared with 286 bitcoin in March. This reflects the effect of the bitcoin halving that occurred on April 19, 2024, a 5.9-per-cent increase in network difficulty compared with March and turbine maintenance in Argentina, which temporarily lowered available capacity at Rio Cuarto from 54 megawatts to 21 megawatts.

April, 2024, select operating highlights:

• 7.0 exahashes per second on-line at April 30, 2024, up 40 per cent year over year and 8 per cent from March 31, 2024;
• 6.1 exahashes per second average on-line, up 7 per cent from the previous month;
• 44 bitcoin per average exahash per second, down 12 per cent from the previous month;
• 269 bitcoin earned, 6 per cent lower than the previous month and 29 per cent lower year over year;
• 9.0 bitcoin earned daily on average, equal to approximately $551,700 per day based on a bitcoin price of $61,300 at April 30, 2024;
• In Quebec:
  • At the Bunker -- installed 2,200 T21s;
  • At Garlock -- installed 3,168 T21s;
  • At Farnham -- installed 1,710 T21s and 100 M53S+ hydro miners;
• In Paraguay:
  • At Paso Pe:
    • Installed 2,880 Bitmain T21 miners;
    • Installed 560 M53S+ Hydro miners;
  • At Yguazu -- started construction of the facility;
• At Rio Cuarto, Argentina, one of the turbines was down for corrective maintenance for approximately 20 days, resulting in reduced power availability from 54 megawatts to 21 megawatts during this period;
• In Washington State -- installed approximately 300 T21s.

April, 2024, financial update:

• Sold 245 of the 269 bitcoin earned as part of the company's regular treasury management process for total proceeds of $16.1-million;
• Bitcoin held in treasury increased to 830 bitcoin, representing $50.9-million based on a bitcoin price of $61,300 at April 30, 2024;
• Increased Synthetic HODL by 85 long-dated bitcoin call options to 170 long-dated bitcoin call options at April 30, 2024;
• Received confirmation from the Canadian tax authorities that $23.7-million (U.S.) of VAT, plus interest, will be refunded and the company will not be restricted from recovering VAT refunds going forward.

Coming conferences and events:

• May 9 to May 10 -- Bitcoin Asia, Hong Kong;
• 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 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.