Bitfarms (BITF) Provides December 2024 Production and Operations Update

Bitfarms Ltd. (NASDAQ: BITF), a global leader in vertically integrated Bitcoin data center operations, today issued its latest monthly production report. All financial references are in U.S. dollars.

CEO Ben Gagnon stated, “2024 was a transformative year for Bitfarms. While we did not meet our original growth targets, we accomplished a tremendous amount during the year. We doubled our hashrate and improved efficiency by 40%, upgraded 11 data centers, increased active MWs by 35%, revamped and strengthened our board of directors and management team, assumed control of our first U.S. large scale site in Sharon, PA with access to up to 120MW, negotiated a settlement to a hostile takeover attempt, and announced our proposed acquisition of Stronghold Digital Mining, Inc. (“Stronghold”), which represents the largest acquisition between two public companies in the Bitcoin mining sector.

“Consistent with our strategy to shift our portfolio towards the U.S., the Stronghold acquisition, expected to close in Q1 2025, will expand and rebalance our energy portfolio in the attractive PJM region, with visibility on a target multi-year expansion capacity of up to 1.6 GW with approximately 66% in the U.S., an eleven-fold increase from approximately 6% today. By vertically integrating with power generation, expanding our energy trading capabilities and acquiring two high potential sites for HPC/AI with significant multi-year expansion potential, we are also executing our strategy to diversify beyond Bitcoin mining to create greater long-term shareholder value.

“Importantly, the changes we have implemented over the last six months since I became CEO have laid the foundation for a better future. We enter 2025 as a stronger, more diversified company with tremendous opportunities and a promising future. I look forward to leading the company and our amazing team in executing on this important transition from the international Bitcoin miner to a North American energy and compute company to capitalize on the massive growth opportunities in both HPC/AI and Bitcoin mining.”

“With liquidity exceeding $145 million at December 31st, these transformative initiatives have presented us with efficient capital-raising opportunities to fund our growth in the U.S.,” noted Jeff Lucas, Chief Financial Officer. “We remain disciplined in raising and deploying capital, prioritizing minimal dilution and maximizing shareholder value.”

Jeff Lucas concluded, “Our Synthetic HODL program, launched as a pilot program in October 2023, has been a key source of low-cost capital, enabling superior returns and outperformance to Bitcoin. We took advantage of the higher Bitcoin prices in December to close out our positions and realize profits before the end of the year. Since the program’s inception, we have achieved a 135% return in U.S. dollar terms, generating a trading profit of approximately $18 million. Having delivered such strong performance with the Synthetic HODL program to date, we are excited to launch our expanded program in 2025.”

Mining Review
December mining operations generated 211 BTC compared to 207 BTC in November, reflecting a 4% increase in average operating EH and a 7% increase in Bitcoin difficulty.

December 2024 Select Operating Highlights

• 12.8 EH/s operational at December 31, 2024, up 97% Y/Y.
• 11.1 EH/s average operational, up 79% Y/Y and up 4% M/M.
• 19 BTC/average EH/s, 74% lower Y/Y.
• 211 BTC earned, up 2% M/M and 53% lower Y/Y.
• 6.8 BTC earned daily on average, equal to ~$639,200 per day based on a BTC price of $94,000 at December 31, 2024.

Bitfarms’ BTC Monthly Production

December 2024 Financial Update

• Sold 147 of the 211 BTC earned as part of the Company’s regular treasury management practice for total proceeds of $14.3 million.
• Total liquidity of $147 million, including approximately $60 million in cash at December 31, 2024.
• Added 64 BTC, bringing Treasury to 934 BTC, up from 870 BTC last month and representing $87.8 million based on the Bitcoin price of $94,000 at December 31, 2024.
• Capitalized on BTC price near all-time highs to close out all Synthetic HODL™ positions in December for a 135% USD denominated return since the program’s inception.

Upcoming Conferences and Events

• January 14-15, 2025: Needham Growth Conference (NYC)
• Feb 12, 2025: AGP Virtual Tech conference
• March 17-18, 2025: 37th Annual ROTH Conference (Dana Point, CA)

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