Bitfarms Reports Record Q3 2021 Revenues, Up 22% from Q2 2021 and 559% from Q3 2020

Grew Revenues to $44.8 Million, Up from $6.8 Million in Q3 2020 –
- Achieved Record Profitability with Net Income of $23.7 Million, Up from a Net Loss of $4.8 Million in Q3 2020


Bitfarms Ltd. (NASDAQ: BITF // TSXV: BITF), a global Bitcoin self-mining company, reported its financial results for the quarter ended September 30, 2021. All financial references are in US dollars. During Q3 2021, Bitfarms mined 1,051 Bitcoin (BTC), up 38% from 759 BTC in Q2 2021, and reduced the average cost of BTC production* to $6,900/BTC, down 23% from $9,000/BTC in Q2 2021.

“Strong growth in production with lower costs of production and favorable Bitcoin market conditions contributed to record quarterly revenues and record profitability in the third quarter of 2021,” said Emiliano Grodzki, Bitfarms Founder and Chief Executive Officer. “In fact, we delivered positive earnings from ongoing operations, even while continuing to invest heavily in growth and to scale the business.

“Bitfarms is building a truly global enterprise by focusing on strategic opportunities to cost effectively leverage our expertise and gain market share. As of today, we have increased our hashrate to over 2 Exahash per second (EH/s) and expanded our production capacity to 106 Megawatts (MW) in Canada and the U.S., with an additional 298 MW in development underway in Canada, Paraguay and Argentina. We are confident we will create additional shareholder value as we continue our efforts to achieve our computational goals of 3 EH/s by March 31, 2022, and 8 EH/s by December 31, 2022,” added Grodzki.

Q3 2021 Financial Highlights

Increased total revenues to a record $44.8 million, up 22% from Q2 2021.

Achieved record net income of $23.7 million, or $0.13 per fully diluted share, compared to a net loss of $3.7 million, or $0.02 per basic share, in Q2 2021.

Increased gross mining margin** to 82%, up from 79% in Q2 2021.

Reported EBITDA** of $41.8 million and EBITDA margin** of 93%, up from $2.8 million and 7% in Q2 2021.

Improved Adjusted EBITDA** to $31.9 million and Adjusted EBITDA margin** to 71%, up from $23.8 million and 65% in Q2 2021.

Ended the third quarter with total liquidity of $144.5 million comprised of $43.3 million in cash and 2,312 BTC valued at approximately $101.2 million based upon a Bitcoin price of approximately $43,800 as reported by Coinmarketcap.com at September 30, 2021.

*Represents the direct cost of Bitcoin based on the total electricity costs and hosting costs related to the Mining of Bitcoin, excluding electricity consumed by hosting clients, divided by the total number of Bitcoin mined.

Recent Operating Highlights

Purchased a 24 MW facility in Washington State, U.S., in November 2021 and entered a memorandum of understanding to co-develop up to an additional 75 MW

Reached an agreement in September 2021 with the City of Sherbrooke, Québec, to fully develop 96 MW on an expedited basis.

Installed latest noise reduction technology and farm designs to significantly reduce sound levels at Sherbrooke and at other farm locations.

Expanded the farm in Cowansville, Québec, from 4 MW to 17 MW in October 2021.

Commenced construction of:

210 MW facility in Argentina;

10 MW facility in Paraguay; and

78 MW on two new farms in Sherbrooke, Québec.

Achieved by November 12, 2021, as compared to September 30, 2021:

2.0 EH/s hashrate, up from 1.5 EH/s;

106 MW in production on 6 farms, up from 69 MW on 5 farms; and

298 MW under construction on 4 farms, up from 267 MW on 3 farms.

2,780 BTC held and valued at approximately $178.4 million at a market price of $64,200/BTC as of November 12, 2021 as quoted on Coinmarketcap.com.