Bitfarms Provides July 2022 Production And Mining Operations Update

Bitfarms Ltd. (NASDAQ:BITF, TSX:BITF), a global Bitcoin self-mining company, provided a Bitcoin (BTC) production and mining operations update for July 2022.

“In July we completed The Bunker Phase 2, reached full production at Leger, and added new production in Washington state, increasing total capacity by 21% to 166 megawatts (MW),” said Ben Gagnon, Chief Mining Officer of Bitfarms. “We partially offset new miner installations at this location with miner redeployments resulting in growth in our hashrate to 3.8 exahash (EH/s), up 6% from 3.6 EH/s at the beginning of July. Unseasonably high temperatures in Québec and Washington state late in the month also slightly lowered miner productivity and affected our corporate hashrate. With cooler temperatures and the completion of remaining miner redeployments, as well as the installation of new miners, we expect our hashrate will exceed our 4 EH/s target in August.”

“Production came in strong and averaged 16.1 BTC/day for the month, up 15% from 14 BTC/day in June. Momentum continued to build throughout the month, with our production run rate hitting 17 BTC/day by month end, up 16% from 14.6 BTC/day at the beginning of July and a record high since the last halving event,” added Gagnon.

“We made significant progress on construction of the two 50 MW warehouses and associated infrastructure in Rio Cuarto, Argentina,” said Geoff Morphy, President and COO of Bitfarms. “The high voltage electrical supply lines are almost complete. The installation of racking, miners, servers, and data cabling in the first warehouse is expected to commence in late September, and production from the first 50 MW warehouse continues to be expected in the fourth quarter of 2022.”

Mining Production

• 3.8 EH/s online as of July 31, 2022, 270% from July 2021 and 6% from June 30, 2022.
• 500 new BTC mined during July 2022, up 28% from July 2021, and up 19% from June 2022.
• 16.1 BTC mined daily on average in July, equivalent to about US$384,279 per day and approximately US$12 million for the month based on a BTC price of US$23,900 on July 31, 2022.
• 2,021 BTC in custody on July 31, 2022, representing a total value of approximately US$48 million based on a BTC price of US$23,900. BTC held in custody on July 31, 2022, reflects the sale of 1,623 BTC during July 2022.

Mining Operations

• Increased total capacity to 166 MW, up 21% from 137 MW on June 30, 2022.
  • The Bunker Phase 2 added 18 MW.
  • Leger reaching full production added 8 MW.
  • Washington state new production contributed 3 MW.
• Construction continued on the two 50 MW warehouses in Rio Cuarto, Argentina. The framing and exterior of the first building is nearing completion as are the foundational supports for the transformers. The high voltage electrical supply lines are almost complete.
• Increased operational miners at the Bunker to over 9,100 miners and growing. The Bunker is currently producing 850 PH/s.

Bitfarms’ BTC 2022 Monthly Production

Financing Activities

In July, Bitfarms completed financing activities that further reduced overall debt and increased liquidity and financial flexibility. During the month, the Company utilized a portion of the proceeds received from the sale of BTC mined and in treasury to reduce the outstanding balance of its BTC-backed loan facility by $15 million. As of July 31, the loan balance of its BTC-backed facility was US$23 million.