Q1 2021 Key Events
- In January and
February 2021 , the Company closed 3 private placements with US institutional investors for combined gross proceeds ofCAD$80 million . The net proceeds provided the Company the financial leverage to expedite its infrastructure expansion plans, make deposits for miners and provide working capital flexibility; - On
March 2 nd, 2021, the Company placed its biggest order of mining rigs in its history; 48,000 best in class miners with MicroBT. Deliveries are anticipated to start inJanuary 2022 . When all miners are received and installed by the end of 2022, the Company anticipates its hash rate to reach 8 EH/s; - On
March 24 th, Bitfarms’ installed hashrate hit 1.2 EH/s, in line with expectations for the end of the quarter
Q1 2021 Financial Results and Operational Highlights
- Revenues of
$28.4 million , gross profit of$19.3 million (68% gross margin),
operating income of$16.4 million (58% operating margin), and net loss of$7.6 million ; - Gross mining profit1 of
$22.3 million (80% gross mining margin1); - Adjusted EBITDA1 of
$19.7 million (69% adjusted EBITDA margin1); - Negative EBITDA1 of
$3.0 million (-11% EBITDA margin1), due mainly to non-recurring, non-cash financial expenses; - Mined 598 Bitcoins with an average cost of approximately
$8,400 per Bitcoin2, and retained 548 Bitcoin worth approximately$32.4 million as ofMarch 31, 2021 ; - 4,500 miners were received and installed during the quarter adding approximately 369 PH/s
“As anticipated, increases in our hash rate and Bitcoin price significantly, and positively, impacted most of our Q1 2021 key financial metrics. Operationally, we added 4,500 miners, thus reaching 1.2 EH/s in computing power as of the end of the first quarter 2021. Financially, equity raises totalling
Financial Results for the Quarter ended
In Q1 2021, the Corporation generated revenues of
Q1 2021 gross mining profit and gross mining margin stood at
Our average cost of production per Bitcoin stood at approximately
For the quarter, adjusted EBITDA and adjusted EBITDA margin stood at
The Company’s Q1 2021 EBITDA was negative
Looking at our cashflows, the January and February private placement equity raises with US institutional investors totaling
The Company ended the quarter with approximately
Conference Call to be held
Management will host a conference call on
Participants are asked to pre-register for the call through the following link:
https://dpregister.com/sreg/10156341/e85e3388ed
Please note that registered participants will receive their dial in number upon registration and will dial directly into the call without delay. Those without internet access or unable to pre- register may dial in by calling: 1-866-777-2509 (domestic), 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the
The conference call will also be available through a live webcast found here:
https://services.choruscall.com/mediaframe/webcast.html?webcastid=PgMEVu3T
A webcast replay of the call will be available approximately one hour after the end of the call through
A presentation of the Q1 2021 results will be accessible on
About
Founded in 2017,
Having demonstrated rapid growth and stellar operations,
To learn more about Bitfarms’ events, developments, and online communities:
Website: www.bitfarms.com
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Defined Terms
PH/s: Petahash per second.
EH/s: Exahash per second.
Cautionary Statement
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the
Forward-Looking Statements
This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release. The information in this release regarding expectations in respect to listing and trading on the Nasdaq and about future plans and objectives of the Company are forward-looking information. Other forward-looking information includes, but is not limited to, information concerning: the intentions, plans and future actions of the Company, as well as Bitfarms’ ability to successfully mine digital currency, revenue increasing as currently anticipated, the ability to profitably liquidate current and future digital currency inventory, volatility of network difficulty and digital currency prices and the potential resulting significant negative impact on the Company’s operations, the construction and operation of expanded blockchain infrastructure as currently planned, and the regulatory environment for cryptocurrency in the applicable jurisdictions.
Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward- looking information.
This forward-looking information is based on assumptions and estimates of management of the Company at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: the global economic climate; dilution; the Company’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors that could impact future results of the business of
Investor and Media Contact: | Investor Relations Contact: |
CORE IR | |
Interim Chief Financial Officer and Corporate Secretary | investors@bitfarms.com |
+1.516.222-2560 | |
+1.514.691-6228 | |
MFerrara@bitfarms.com | |
(U.S.$ in thousands except where indicated) | Three months ended | |||||||
For the periods ended as indicated | 2021 | 2020 | $ Change | % Change | ||||
Revenues | 28,432 | 9,212 | 19,220 | 209% | ||||
Cost of sales | 9,120 | 7,917 | 1,203 | 15% | ||||
Gross profit | 19,312 | 1,295 | 18,017 | 1391% | ||||
Gross margin | 68% | 14% | - | - | ||||
General and administrative expenses | 2,819 | 2,805 | 14 | - | ||||
Loss on disposition of digital assets | 22 | - | 22 | - | ||||
Operating income (loss) | 16,471 | (1,510) | 17,981 | 1191% | ||||
Operating margin | 58% | (16%) | - | - | ||||
Gain on disposition of PP&E | (19) | - | (19) | - | ||||
Net financial expenses | 23,425 | 1,022 | 22,403 | 2192% | ||||
Net loss before income taxes | (6,935) | (2,532) | (4,403) | (174%) | ||||
Income tax expense (recovery) | 670 | (108) | 778 | 720% | ||||
Net loss | (7,605) | (2,424) | (5,181) | (214%) | ||||
Basic and diluted net loss per share | (0.06) | (0.03) | - | - | ||||
Revaluation gain on digital assets (net of tax) | 5,128 | - | 5,128 | - | ||||
Total comprehensive loss | (2,477) | (2,424) | (53) | (2%) | ||||
Gross mining profit (1) | 22,267 | 4,139 | 18,128 | 438% | ||||
Gross mining margin (1) | 80% | 47% | - | - | ||||
EBITDA (1) | (3,029) | 1,833 | (4,862) | (265%) | ||||
EBITDA margin (1) | (11%) | 20% | - | - | ||||
Adjusted EBITDA (1) | 19,701 | 2,780 | 16,921 | 609% | ||||
Adjusted EBITDA margin (1) | 69% | 30% | - | - |
(1) Gross mining profit, Gross mining margin, EBITDA, EBITDA margin, Adjusted EBITDA, and Adjusted EBITDA margin, are non-IFRS performance measures; please refer to the Caution Regarding Non-IFRS Financial Performance Measures section of Bitfarms’ Q1 2021 Management Discussion and Analysis (MD&A).
(2) Represents the average cost of Bitcoin based on variable cost of electricity and is calculated by taking the total electricity costs related to the Mining of Bitcoin, excluding electricity consumed by hosting clients, divided by the total number of Bitcoin mined.
Source:
2021 GlobeNewswire, Inc., source