Bitfarms stock continues bull run with solid October

• Bitfarms (TSX:BITF), a small-cap Bitcoin mining stock, added 57 Bitcoins to its coffers in October, bringing total coins held to 760, which are valued at approximately US$26 million
• The company has been ramping up its operating capacity amid BTC’s gain of approximately 107.8 per cent over the past 10 months
• Bitfarms is a global Bitcoin mining company
• Bitfarms stock (TSX:BITF) is up by more than 150 per cent year-to-date, but has lost approximately 30 per cent since inception in 2019

Bitfarms (TSX:BITF), a small-cap Bitcoin mining stock, added 57 Bitcoins to its coffers in October, bringing total coins held to 760, which are valued at approximately US$26 million.

October production declined 3.2 per cent from 411 BTC earned in September because network difficulty – which determines the computing power required to mine Bitcoin based on mining demand – increased by 9.4 per cent in October compared to 2.7 per cent in September. Production is down by 18.1 per cent from October 2022 with network difficulty having increased by 76.6 per cent year-to-date.

The rising demand for miners coincides with an upcoming April 2024 halving of the Bitcoin reward miners receive for mining Bitcoin, an inflationary measure that occurs every four years, and is associated with bullishness for the cryptocurrency. BTC has gained approximately 107.8 per cent for the 10 months ended Tuesday.

Select October 2023 operating highlights

• 6.3 exahash (EH/s) online as of Oct. 31, 2023, up 50 per cent from Oct. 31, 2022, and up 3 per cent from Sept. 30, 2023
• An average of 12.8 BTC earned daily, equivalent to US$437,800 per day and approximately US$13.6 million for the month based on a BTC price of US$34,200 on Oct. 31, 2023
• Reduced total debt by US$1.9 million, with US$7.9 million remaining as of Oct. 31, 2023
• Installed 2,100 miners
• Civil work and construction is advancing on schedule at the mining facility in Paso Pe, Paraguay
• The facility in Rio Cuarto, Argentina increased capacity by 3 MW to 54 MW and its hashrate to 1.6 EH/s
• The facility in Baie-Comeau, Québec has ramped up phase-1 operating capacity to its full 11 MW

October 2023 production in perspective

Monthly BTC production through October 2022-2023

Management commentary

“In October, we increased our hashrate to 6.3 EH/s as we completed energization of our Baie-Comeau, Québec, facility at 11 MW and boosted Rio Cuarto from 51 MW to 54 MW. We ended October with 240 MW of operating capacity, up 31 per cent from a year ago,” Geoff Morphy, CEO of Bitfarms, said in a statement. “With long-term and low-cost energy contracts totaling 574 MW, we still have significant room to expand our portfolio and build new farm infrastructure that would more than double our current 240 MW in production.”

“We’ve been steadfast this year in increasing our financial flexibility and strengthening our balance sheet while executing our 2023 growth plan. We have cost-effectively grown our hashrate and farm infrastructure while prudently paying down debt. Our disciplined strategy of carefully timing fleet upgrades has embedded optionality as next-generation miners coming to market now could generate dramatic production increases at our existing state-of-the-art facilities. In short, we are well-positioned to invest for the remainder of 2023 and into 2024 and take advantage of disruptive opportunities around the April halving,” Morphy said.

“As we look to 2024 and the halving, we are paying close attention to the rapid growth of network hashrate, which historically has preceded many bull runs,” added Ben Gagnon, chief mining officer at Bitfarms. “On cue, network difficulty is up 9.4 per cent during the month, outpacing hashrate growth of 3.2 per cent. Anticipating that these macro conditions were likely to occur, we remained disciplined in our approach to growth and capital expenditures, which has made us well-positioned to take full advantage of the acquisition of new-gen miners announced on Oct. 2, 2023.”

Bitfarms is a global Bitcoin mining company with 11 facilities in operation across Canada, the United States, Paraguay and Argentina.

Bitfarms stock (TSX:BITF) opened with a gain of 2.04 per cent trading at C$1.50 per share. The stock is up by more than 150 per cent year-to-date, but has lost approximately 30 per cent since inception in 2019.

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