Bitfarms Enters into 10,000 Miner Hosting Agreement with Stronghold Digital Mining

- Agreement to support 2.2 EH/s with energization expected in October, two months ahead of schedule - - Company reiterates 2024 & 2025 guidance of 21 EH/s & 35+ EH/s, respectively - TORONTO, Ontario and BROSSARD, Québec, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ/TSX:BITF) ("Bitfarms" or the "Company"), a global leader in vertically integrated Bitcoin data center operations, has entered into a miner hosting agreement (the "Hosting Agreement") with Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc. (NASDAQ:SDIG) ("Stronghold") at Stronghold's Panther Creek site in Pennsylvania. Under the terms of the Hosting Agreement, Bitfarms will be accelerating the deployment of 10,000 Bitmain T21 miners, originally scheduled to come online at the Company's Yguazu, Paraguay site in December 2024, to Stronghold's Panther Creek site. Energization is anticipated in October 2024 and will bring 2.2 EH/s online immediately. "This Hosting Agreement represents an important milestone in our efforts to further optimize our assets and take greater control over our top cost element, the cost of power," stated Ben Gagnon, Chief Executive Officer. "The opportunity to vertically integrate our operations with Stronghold's existing power generation infrastructure provides a robust pathway to continued, profitable growth. Further, Stronghold's Pennsylvania sites have substantial multi-year expansion potential and provide access to energy trading opportunities, competitive power costs, and HPC/AI. We look forward to completing our acquisition of Stronghold and accelerating our strategy to diversify beyond Bitcoin mining to create greater long-term shareholder value." The Hosting Agreement will commence on October 1, 2024, and continue for an initial term expiring on December 31, 2025, after which it will automatically renew for additional one-year periods unless either party provides written notice of non-renewal. Pursuant to the Hosting Agreement, Bitfarms will pay Stronghold a monthly fee equal to fifty percent of the profit generated by the Bitfarms miners, subject to certain monthly adjustments between the parties to account for the upfront monthly payment due from Bitfarms to Stronghold in the amount of $210,000 and for taxes and the net cost of power associated with the operation of the Bitfarms miners. In connection with the execution of the Hosting Agreement, Bitfarms also deposited with Stronghold $7.8 million, equal to the estimated cost of power for three months of operations of the Bitfarms miners, which will be refundable in full to Bitfarms within one business day of the end of the initial term expiring on December 31, 2025. About BitfarmsFounded in 2017, Bitfarms is a global vertically integrated Bitcoin data center company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining facilities with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company's proprietary data analytics system delivers best-in-class operational performance and uptime. Bitfarms currently has 12 operating Bitcoin data centers and two under development situated in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure. To learn more about Bitfarms' events, developments, and online communities: www.bitfarms.comhttps://www.facebook.com/bitfarms/https://twitter.com/Bitfarms_iohttps://www.instagram.com/bitfarms/https://www.linkedin.com/company/bitfarms/ Glossary of Terms HPC = High-performance computing AI = Artificial intelligence EH or EH/s = Exahash or exahash per second Cautionary StatementTrading 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 Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release. Forward-Looking StatementsThis 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 and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding the impact of the Hosting Agreement, projected growth, target hashrate, opportunities relating to the Company's geographical diversification and expansion, upgrading and deployment of miners as well as the timing therefor, closing of the Stronghold acquisition on a timely basis and on the terms as announced, the ability to integrate and successfully operate the Sharon mega-site with access to up to 120 MW, entering into a definitive lease agreement and receiving regulatory approvals in respect of the letter of intent for a lease to an additional 10 MW site in Sharon, the benefits of the Stronghold acquisition and the other Sharon ...