UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2024
Commission File Number: 001-40370
BITFARMS LTÉE
(Translation of registrant’s name into English)
110 Yonge Street, Suite 1601, Toronto, Ontario, Canada M5C 1T4
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
DOCUMENTS INCLUDED AS PART OF THIS FORM 6-K
On September 3, 2024, the Registrant filed with the Canadian Securities Regulatory Authorities on the System for Electronic Data Analysis and Retrieval + (SEDAR +) a material change report that includes a copy of a press release, a copy of which is attached hereto as Exhibit 99.1, which is incorporated by reference into the Registration Statements of Bitfarms Ltd. on Form F-10 (File No. 333-272989) and Form S-8 (File No. 333-278868).
See the Exhibits listed below.
| Exhibits | ||
| Exhibit No. | Description | |
| 99.1 | Material Change Report dated September 3, 2024 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BITFARMS LTÉE | |||
| Par : | /s/ Ben Gagnon | ||
| Name: | Ben Gagnon | ||
| Title: | Directeur général | ||
Date: September 3, 2024
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Exhibit 99.1
FORM 51-102F3
MATERIAL CHANGE REPORT
| Item 1 | Name and Address of Company |
Bitfarms Ltd. (“Bitfarms” or the “Company”)
110 Yonge Street, Suite 1601
Toronto, Ontario M5C 1T4
| Item 2 | Date of Material Change |
3 septembre 2024
| Item 3 | News Release |
The press release attached as Schedule “A” was released on September 3, 2024 by a newswire company in Canada.
| Item 4 | Summary of Material Change |
The material change is described in the press release attached as Schedule “A”.
| Item 5 | Full Description of Material Change |
The material change is described in the press release attached as Schedule “A”.
| Item 6 | Reliance of subsection 7.1(2) of National Instrument 51-102 |
Not applicable.
| Item 7 | Omitted Information |
Not applicable.
| Item 8 | Executive Officer |
Ben Gagnon
Directeur général
Bitfarms ltée
Bgagnon@bitfarms.com
| Item 9 | Date of Report |
September 3, 2024.
Schedule “A”
Bitfarms Provides August 2024 Production
and Operations Update
- Bitfarms to Acquire Stronghold Digital Mining, Increasing 2025 Energy Portfolio by 47% -
- Earned 233 BTC in August 2024 & Increased HODL to 1,103 BTC -
- Increased Operational Hashrate to 11.3 EH/s -
- Announces Assumption of Control of Sharon, PA Site -
Ce communiqué de presse constitue un « communiqué de presse désigné » aux fins du supplément de prospectus de la Société daté du 8 mars 2024, à son prospectus préalable de base simplifié daté du 10 novembre 2023.
Toronto, Ontario and Brossard, Québec (September 3, 2024) - Bitfarms Ltd. (NASDAQ/TSX: BITF), a global leader in vertically integrated Bitcoin data center operations, is pleased to announce its latest monthly production report alongside an important update on its fleet upgrade and expansion initiatives. All financial references in this release are in U.S. dollars.
Expansion stratégique et amélioration du portefeuille énergétique
Ben Gagnon, directeur général de Bitfarms, a souligné l'importance stratégique des récents développements : « L'acquisition de « Stronghold Digital Mining » marque une avancée importante pour Bitfarms, consolidant notre position d'acteur dominant dans les secteurs de l'exploitation du minage de bitcoins et de l'HPC/IA. Cette acquisition nous permettra d'améliorer et de rééquilibrer notre portefeuille énergétique, en visant une expansion à 950 MW d'ici la fin de 2025, avec près de 50 % de notre capacité basée aux États-Unis. 1,6 GW, dont environ 66 % aux États-Unis, ce qui représente une augmentation substantielle par rapport aux 6 % actuels. »
M. Gagnon a expliqué plus en détail la stratégie de l'entreprise : « En s'intégrant verticalement à la production d'énergie, en développant nos capacités de commerce d'énergie, et en sécurisant deux sites avec un potentiel d'expansion substantiel sur plusieurs années, Bitfarms exécute une stratégie qui nous positionne pour diversifier nos opérations au-delà du minage de bitcoins et maximiser la valeur actionnariale à long terme. »
Outre cette acquisition stratégique, Bitfarms a pris le contrôle de son premier méga-site situé à Sharon, en Pennsylvanie, qui offre un accès à 120 MW. M. Gagnon a déclaré : « Avec cette transaction, nous avons finalisé l'acquisition de 110 MW, avec 30 MW qui devraient être mis en service d'ici la fin de 2024. Nous avons également signé une lettre d'intention pour un site supplémentaire de 10 MW, ce qui portera la capacité totale de notre site à 120 MW d'ici 2025. »
These developments underscore Bitfarms’ commitment to expanding its operational footprint and optimizing its energy strategy, further reinforcing its position as a leader in the industry.
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Revue du minage
Bitcoin difficulty decreased 1.3% in the month. August mining operations generated 233 BTC compared to 253 BTC in July as a result of the increase in average network difficulty during the month, partially offset by higher corporate hashrate due to the receipt of 2,744 T21 miners from Bitmain to replace the underperforming miners which are currently being installed.
| Indicateurs clés de performance | August 2024 | Juillet 2024 | August 2023 | |||||||||
| Total des BTC obtenus | 233 | 253 | 383 | |||||||||
| EH/s opérationnels de fin de mois | 11.3 | 11.1 | 5.6 | |||||||||
| BTC/Avg. EH/s | 22 | 25 | 75 | |||||||||
| Moyen des EH/s de fonctionnement | 10.4 | 10.3 | 5.1 | |||||||||
| Capacité d'exploitation (MW) | 310 | 310 | 212 | |||||||||
| Hydroélectricité (MW) | 256 | 256 | 183 | |||||||||
| Efficacité Watts/Terahash (w/TH) | 25 | 25 | 37 | |||||||||
| BTC vendus | 147 | 142 | 323 | |||||||||
Faits marquants du mois d'août 2024
| ● | 11,3 EH/s opérationnel en 31 août 2024, en hausse de 102 % depuis l'année dernière et de 2 % depuis le mois dernier. |
| ● | 10,4 EH/s opérationnel en moyenne, en hausse de 104 % depuis l'année dernière et de 1% depuis le mois dernier. |
| ● | 22,4 BTC/moyenne EH/s, en baisse de 9 % par rapport au mois précédent en raison de l'augmentation de la difficulté moyenne du réseau. |
| ● | 233 BTC obtenus, 8 % de baisse depuis le mois précédent et 39 % de baisse depuis l'année précédente. |
| ● | 7,5 BTC obtenus quotidiennement en moyenne, égal à ~$443 000 par jour sur la base d'un prix de BTC de 59 000 $ au 31 août 2024. |
| ● | 5 040 T21 en transit. |
| o | 3 060 - Canada |
| o | 648 - Washington |
| o | 1 332 - Argentine |
Paraguay
| o | À Yguazu, la construction progresse rapidement et reste dans les délais. |
Production mensuelle de BTC par Bitfarms
| Mois | BTC Earned 2024 | BTC Earned 2023 | ||||||
| Janvier | 357 | 486 | ||||||
| Février | 300 | 387 | ||||||
| Mars | 286 | 424 | ||||||
| Avril | 269 | 379 | ||||||
| Mai | 156 | 459 | ||||||
| Juin | 189 | 385 | ||||||
| Juillet | 253 | 378 | ||||||
| Août | 233 | 383 | ||||||
| Total pour l'année | 2,043 | 3,281 | ||||||
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Mise à jour financière d'août 2024
| ● | Vente de 147 des 233 BTC obtenus dans le cadre de la pratique régulière de gestion de trésorerie de la Société pour un produit total de 8,8 millions de dollars. |
| ● | Ajouté 86 BTC, portant la trésorerie à 1 103 BTC, en hausse par rapport à 1,016 BTC le mois dernier et représentant 65,1 millions de dollars sur la base d'un prix du BTC de 59 000 dollars au 31 août 2024. |
| ● | HODL synthétique🅪 de 647 options d'achat BTC de long terme au 31 août 2024. |
Conférences et événements à venir
| ● | 9-11 septembre : 26e conférence annuelle sur l'investissement mondial de H.C. Wainwright (New York) |
| ● | 21-22 octobre : Sommet de l'AIM (Dubaï) |
| ● | 13-14 novembre : Cantor Crypto, Conférence sur les actifs numériques & Infrastructure IA (Miami) |
Fondée en 2017, Bitfarms est une société mondiale de centres de données de bitcoins à intégration verticale qui met sa puissance informatique à la disposition d'un ou de plusieurs « pools » de minage dont elle reçoit le paiement en bitcoins. Bitfarms développe, possède et exploite des installations de minage intégrées verticalement, avec une gestion interne et des services d'ingénierie et d'installation électrique appartenant à la Société, ainsi que de nombreux centres de réparation technique sur site. Le système d'analyse de données exclusif de la Société permet d'obtenir les meilleures performances opérationnelles et le meilleur temps de fonctionnement de sa catégorie.
Bitfarms a actuellement 12 l’exploitation de centres de données bitcoins et deux en cours de développement situés dans quatre pays : le Canada, les États-Unis, le Paraguay et l’Argentine. Alimenté principalement par des contrats hydroélectriques et d’électricité à long terme respectueux de l’environnement, Bitfarms s’engage à utiliser une infrastructure énergétique durable et souvent sous-utilisée.
Pour en savoir plus sur les événements, les développements et les communautés en ligne de Bitfarms :
www.bitfarms.com
https://www.facebook.com/BitfarmsFR/
https://twitter.com/bitfarms_fr
https://www.instagram.com/bitfarms_fr/
https://www.linkedin.com/company/bitfarms-fr
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Glossaire des termes
| ● | A/A ou M/M = année sur année ou mois sur mois |
| ● | BTC ou BTC/jour = Bitcoin ou Bitcoin par jour |
| ● | HPC = Calcul haute performance |
| ● | IA = Intelligence artificielle |
| ● | EH ou EH/s = Exahash ou exahash par seconde |
| ● | MW ou MWh = Mégawatts ou mégawattheure |
| ● | GW ou GWh - Gigawatts ou gigawattheures |
| ● | PH ou PH/s = Petahash ou Petahash par seconde |
| ● | TH ou TH/s = Terahash ou terahash par seconde |
| ● | w/TH = Efficacité en watts/terahash (y compris le coût de l’alimentation de l’équipement supplémentaire) |
| ● | HODL™ synthétique = l’utilisation d’instruments qui créent une exposition équivalente au BTC |
Mise en garde
Le commerce des titres de la Société doit être considéré comme hautement spéculatif. Aucune bourse, commission des valeurs mobilières ou autre autorité réglementaire n'a approuvé ou désapprouvé les informations contenues dans le présent document. Ni la Bourse de Toronto, ni le Nasdaq, ni aucune autre bourse de valeurs ou autorité de réglementation n'acceptent la responsabilité de la pertinence ou de l'exactitude de ce communiqué.
Énoncés prévisionnels
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 and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding 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 receive 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 lease transactions (collectively, the “Sharon Acquisitions”) , the ability to gain access to additional electrical power and grow the hashrate of the Stronghold business and the other Sharon Acquisitions, performance of the plants and equipment upgrades and the impact on operating capacity including the target hashrate and multi-year expansion capacity, the opportunities to leverage Bitfarms’ proven expertise to successfully enhance energy efficiency and hashrate, the benefits of the growth strategy including to merge HPC / AI with Bitcoin mining operations, and other statements regarding future plans and objectives of each of Bitfarms, Stronghold and the combined company, improved financial performance and balance sheet liquidity, hashrate growth in general, energy efficiency and cost savings in general, and other growth opportunities and prospects, and other statements regarding future growth, plans and objectives of the Company are forward-looking information.
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Toute déclaration impliquant des discussions relatives à des prédictions, des attentes, des croyances, des plans, des projections, des objectifs, des hypothèses, des événements ou des performances futurs (en utilisant souvent, mais pas toujours, des expressions telles que « s'attend à » ou « ne s'attend pas à », « est attendu », « anticipe » ou « n'anticipe pas », « planifie », « budget », « programmé », « prévisions », « estimations », « perspectives », « croire » ou « avoir l'intention » ou des variantes de ces mots et de ces expressions ou déclarant que certaines actions, événements ou résultats « peuvent » ou « pourraient », « seraient », « pourraient » ou « seront » pris pour se produire ou être atteints) ne sont pas des déclarations de faits historiques et peuvent constituer de l'information prospectives.
This forward-looking information is based on assumptions and estimates of management of each of Bitfarms and Stronghold 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 each of Bitfarms and Stronghold 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: receipt of the approval of the shareholders of Stronghold and the Toronto Stock Exchange for the Stronghold acquisition as well as other applicable regulatory approvals; that the Stronghold acquisition may not close within the timeframe anticipated or at all or may not close on the terms and conditions currently anticipated by the parties for a number of reasons including, without limitation, as a result of a failure to satisfy the conditions to closing of the Stronghold acquisition, the letter of intent on the 10 MW is subject to entering into a definitive lease agreement and TSX approval, none of which is assured; the power purchase agreements and economics thereof may not be as advantageous as expected; the inability of Bitfarms to operate the plants as anticipated following consummation of the Sharon Acquisitions; the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine digital currency is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the power purchase agreements and economics thereof may not be as advantageous as expected; potential environmental cost and regulatory penalties due to the operation of the Stronghold plants which entail environmental risk and certain additional risk factors particular to the business of Stronghold including, land reclamation requirements may be burdensome and expensive, changes in tax credits related to coal refuse power generation could have a material adverse effect on the business, financial condition, results of operations and future development efforts, competition in power markets may have a material adverse effect on the results of operations, cash flows and the market value of the assets, the business is subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with, existing or future energy regulations or requirements, the operations are subject to a number of risks arising out of the threat of climate change, and environmental laws, energy transitions policies and initiatives and regulations relating to emissions and coal residue management, which could result in increased operating and capital costs and reduce the extent of business activities, operation of power generation facilities involves significant risks and hazards customary to the power industry that could have a material adverse effect on our revenues and results of operations, and there may not have adequate insurance to cover these risks and hazards, employees, contractors, customers and the general public may be exposed to a risk of injury due to the nature of the operations, limited experience with carbon capture programs and initiatives and dependence on third-parties, including consultants, contractors and suppliers to develop and advance carbon capture programs and initiatives, and failure to properly manage these relationships, or the failure of these consultants, contractors and suppliers to perform as expected, could have a material adverse effect on the business, prospects or operations; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power to operate cryptocurrency mining assets; the risks of an increase in electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which Bitfarms and Stronghold operate and the potential adverse impact on profitability; future capital needs and the ability to complete current and future financings, including each of Bitfarms’, Stronghold’s or the combined company’s ability to utilize an at-the-market offering program (each, an “ATM Program”) and the prices at which securities may be sold in each such ATM Program, as well as capital market conditions in general; share dilution resulting from an ATM Program and from other equity issuances; volatile securities markets impacting security pricing unrelated to operating performance; the risk that a material weakness in internal control over financial reporting could result in a misstatement of financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent any of Bitfarms, Stronghold or the combined company from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to Bitfarms’ filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024 and the MD&A for the three and six months ended June 30, 2024 filed on August 8, 2024 and Stronghold’s filings on www.sec.gov, including the Annual Report on Form 10-K for the fiscal year ended 2023, filed on March 8, 2024, the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, filed on May 8, 2024, the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed on August 14, 2024, and subsequent reports on Forms 10-Q and 8-K. Although each of Bitfarms and Stronghold has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by Bitfarms or Stronghold, as applicable. There can be no assurance that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. Neither Bitfarms nor Stronghold undertakes any obligation to revise or update any forward-looking information other than as required by law.
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Information complémentaire sur la fusion et où les trouver
Cette communication concerne un projet de fusion entre Stronghold et Bitfarms. Dans le cadre de la fusion proposée, Bitfarms a l'intention de déposer auprès de la SEC une déclaration d'inscription sur le formulaire F-4, qui comprendra une circulaire de sollicitation de procurations de Stronghold qui constitue également un prospectus de Bitfarms. Une fois la déclaration d'inscription déclarée effective, Stronghold enverra la circulaire de sollicitation de procurations/le prospectus à ses actionnaires. Cette communication ne remplace pas la déclaration d'inscription, la déclaration de procuration/le prospectus ou tout autre document pertinent que Bitfarms et Stronghold ont déposé ou déposeront auprès de la SEC. Les investisseurs sont invités à lire attentivement et dans leur intégralité la circulaire de sollicitation de procurations/le prospectus (y compris tous les amendements et tous les suppléments y afférents) et les autres documents pertinents déposés auprès de la SEC si et quand ils seront disponibles, car ils contiendront de l'information importante sur la fusion proposée et les questions connexes.
Investors may obtain free copies of the registration statement, the proxy statement/prospectus and other relevant documents filed by Bitfarms and Stronghold with the SEC, when they become available, through the website maintained by the SEC at www sec.gov. Copies of the documents may also be obtained for free from Bitfarms by contacting Bitfarms’ Investor Relations Department at investisseurs@bitfarms.com and from Stronghold by contacting Stronghold’s Investor Relations Department at SDIG@gateway-grp.com.
Pas d'offre ni de sollicitation
Cette communication n'est pas destinée à constituer et ne constitue pas une offre de vente ou la sollicitation d'une offre d'achat, de vente ou de sollicitation de titres ou d'une procuration, d'un vote ou d'une approbation, et il n'y aura pas de vente de titres dans une juridiction où une telle offre, sollicitation ou vente serait illégale avant l'inscription ou la qualification en vertu des lois sur les valeurs mobilières d'une telle juridiction. Aucune offre de valeurs mobilières n'est réputée être faite si ce n'est au moyen d'un prospectus répondant aux exigences de la section 10 de la loi sur les valeurs mobilières de 1933, telle qu'elle a été modifiée.
Participants à la sollicitation relative à la fusion
Bitfarms, Stronghold, their respective directors and certain of their respective executive officers may be deemed to be participants in the solicitation of proxies from Stronghold’s shareholders in respect of the proposed merger. Information regarding Bitfarms’ directors and executive officers can be found in Bitfarms’ annual information form for the year ended December 31, 2023, filed on March 7, 2024, as well as its other filings with the SEC. Information regarding Stronghold’s directors and executive officers can be found in Stronghold’s proxy statement for its 2024 annual meeting of stockholders, filed with the SEC on April 29, 2024, and supplemented on June 7, 2024, and in its Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024. This communication may be deemed to be solicitation material in respect of the proposed merger. Additional information regarding the interests of such potential participants, including their respective interests by security holdings or otherwise, will be set forth in the proxy statement/prospectus and other relevant documents filed with the SEC in connection with the proposed merger if and when they become available. These documents are available free of charge on the SEC’s website and from Bitfarms and Stronghold using the sources indicated above.
Contacts pour les relations avec les investisseurs :
Bitfarms
Tracy Krumme
SVP, Head of IR & Corp. Comms.
+1 786-671-5638
tkrumme@bitfarms.com
Innisfree M&A Incorporated
Gabrielle Wolf / Scott Winter
+1 212-750-5833
Groupe consultatif Laurel Hill
1-877-452-7184
416-304-0211
assistance@laurelhill.com
Contacts pour les médias :
États-Unis : Joele Frank, Wilkinson Brimmer Katcher
Dan Katcher or Joseph Sala
+1 212-355-4449
Québec : Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca
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