Bitfarms' December 2024 Operational Insights and Strategy Update

Overview of Bitfarms’ Performance in December 2024

Bitfarms Ltd. (NASDAQ/TSX: BITF) recently released its production and operational update for December 2024, showcasing remarkable advancements. The company achieved a 97% year-over-year increase in hashrate, reaching an impressive 12.8 EH/s, while improving efficiency by 40% year-over-year to 21 watts per terahash (w/TH). Over the full year of 2024, Bitfarms successfully earned 2,914 BTC and expanded its operational megawatts (MW) by 35% to a total of 324 MW.

Transformative Year for Bitfarms

CEO Ben Gagnon expressed that 2024 was a transformative year for Bitfarms. Although the company did not meet its initial growth objectives, it achieved substantial milestones. These include doubling the hashrate, enhancing efficiency, upgrading 11 data centers, and strategizing a pivotal acquisition of Stronghold Digital Mining, which is slated to close in early 2025. This acquisition marks a significant merger within the Bitcoin mining sector, positioning Bitfarms for future growth.

Strategic Shift Towards U.S. Operations

Gagnon noted that aligning with their strategy to enhance their U.S. presence, the anticipated Stronghold acquisition will rebalance their energy portfolio. This strategic initiative focuses on expanding capacity within the profitable PJM region, potentially scaling up to 1.6 gigawatts (GW). Currently, around 66% of this capacity is projected to be in the U.S., significantly up from just 6% previously.

Financial Performance and Projections

The financial overview is equally compelling. As of December 31, liquidity stood at over $145 million. Jeff Lucas, the Chief Financial Officer, highlighted that the transformation initiatives initiated under Gagnon’s leadership have opened up effective capital-raising opportunities to support U.S. expansion while maintaining minimal dilution for shareholders. The company has rigorously maintained a disciplined approach to capital management aimed at maximizing shareholder value.

Insights on the Synthetic HODL Program

Lucas also discussed the company’s Synthetic HODL program, launched as a pilot in late 2023, which has proven to be a profitable venture. With a substantial 135% return realized in U.S. dollar terms, Bitfarms closed profitable positions in December, taking advantage of favorable Bitcoin prices.

Mining Performance Highlights

In December alone, Bitfarms increased its Bitcoin production, generating 211 BTC compared to 207 BTC in November—a slight but noteworthy increase, reflecting an upward trend in operational efficiency amid rising Bitcoin difficulty levels. With a month-end operating hashrate of 12.8 EH/s and an average operating hashrate of 11.1 EH/s, the operations continue to demonstrate robust performance.

Operational Efficiency Metrics

• Total BTC earned reached 211, up 4% month-over-month.
• Average operating efficiency showed marked improvements with 19 BTC per average EH/s.
• The company sold 147 of the 211 BTC earned, generating proceeds of approximately $14.3 million.

Looking Ahead: Conferences and Events

Bitfarms has outlined its participation in several upcoming events, including the Needham Growth Conference in January, the AGP Virtual Tech Conference in February, and the ROTH Conference in March. These engagements will allow the company to connect with investors and showcase its evolving strategy within the Bitcoin mining and energy sectors.

About Bitfarms Ltd.

Established in 2017, Bitfarms stands out as a vertically integrated Bitcoin data center operator. By owning and operating its unique mining facilities, the company maximizes its operational performance and uptime. With a commitment to sustainable practices, Bitfarms harnesses predominantly renewable energy sources, primarily hydroelectric power, which is crucial for its operational success and environmental responsibility.

Frequently Asked Questions

What is Bitfarms' hashrate as of December 2024?

As of December 2024, Bitfarms reached a hashrate of 12.8 EH/s, representing a 97% year-over-year increase.

How many Bitcoin did Bitfarms earn in 2024?

In 2024, Bitfarms earned a total of 2,914 BTC.

What is the significance of the Stronghold acquisition?

The acquisition of Stronghold Digital Mining is significant as it represents the largest merger between two public companies in the Bitcoin mining sector, aimed at enhancing Bitfarms' U.S. operational footprint.

What is the Synthetic HODL program?

The Synthetic HODL program is a capital management initiative that aims to generate returns by leveraging Bitcoin price movements, achieving a 135% return since its inception.

Which sustainability practices does Bitfarms follow?

Bitfarms operates its mining facilities with a strong emphasis on sustainability, utilizing renewable energy sources, predominantly hydroelectric power, to minimize environmental impact.

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