Press release

Bitfarms Announces Drawdown of US$5M Second Tranche of Loan Financing

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Bitfarms Ltd. (the “Company”) (TASE:
), one of the largest blockchain infrastructure companies in
the world through its ownership of Backbone Hosting Solutions Inc.
(operating under the name “Bitfarms”), is announcing today the
drawdown of a second US$5,000,000 tranche of financing pursuant to the
loan financing entered into with Dominion Capital LLC (“Dominion”)
on March 15, 2019.

As announced in the Company’s news release dated March 17, 2019,
Bitfarms secured US$20,000,000 in debt financing made available in four
(4) US$5,000,000 tranches tied to the ongoing satisfaction of various
operational and corporate milestones. Pursuant to the second tranche
funding and the Bitfarms’ loan financing agreement, Bitfarms Ltd.
(Canada) has issued an additional 1.67M common share purchase warrants
to Dominion at an exercise price of US$0.40 per share. For further
details on the loan financing please refer to the original news

Expanding on this announcement, Wes Fulford, CEO of Bitfarms added: “We
have successfully invested the proceeds of our first loan financing
tranche and we are excited with the progress we have made to date. This
second round of funding will allow us to continue to execute our
operational expansion.”

About Bitfarms Ltd. (formerly Bitfarms Technologies Ltd. and
Blockchain Mining Ltd.)

Through its ownership of Bitfarms, the Company owns and operates
computing centres that power the global decentralized financial economy.
Bitfarms provides computing power to cryptocurrency networks such as
Bitcoin, earning fees from each network for securing and processing
transactions. Powered by clean and competitively priced
hydroelectricity, Bitfarms operates 4 computing centres in Québec,
Canada with 36MW of built-out infrastructure and approximately 220 Ph/s
of installed hash power. Bitfarms’ strong and experienced management
team is comprised of veteran industrial-scale data centre operators and
capital markets professionals, focused on building infrastructure for
the future by developing and hosting the ecosystem growing around
blockchain-based technologies.

Keep up-to-date on Bitfarms’ events, developments and online communities:


Cautionary Statement

This press release does not constitute an offer to sell or a
solicitation of an offer to buy or sell securities or other financial
instruments in any jurisdiction or any advice or recommendation with
respect to such securities or other financial instruments of the Company.

Investors are cautioned that, except as disclosed in the Company’s
regulatory disclosures prepared in connection with transactions
described herein, any information released or received with respect to
the transactions described herein may not be accurate or complete and
should not be relied upon. 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.

Forward-Looking Statements

This news release contains certain “forward-looking information”
within the meaning of applicable securities laws that are based on
expectations, estimates and projections as at the date of this news
release. The information in this release about the terms and conditions
of the Loan Financing, the proposed Arrangement with Bitfarms Ltd.
(Canada), and the 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 following the Bitfarms Loan Financing, the
timing for the implementation of the Arrangement, the listing of the
Common Shares of Bitfarms Ltd. (Canada) on stock exchanges, the
potential benefits of the Loan Financing and the Arrangement, the
likelihood of future drawdowns under the Loan Financing which are based
on expansion milestones and ongoing satisfaction of debt covenants,
receipt of applicable shareholder approvals and completion of the
Arrangement, as well as Bitfarms’ ability to successfully mine digital
currency, revenue increasing as currently anticipated, the ability to
profitably liquidate the current digital currency inventory,
fluctuations in digital currency prices and the resulting significant
negative impact on Bitfarms’ operations, the volatility of digital
currency prices, the construction and operation of blockchain
infrastructure as currently planned, and no regulation or law that will
prevent Bitfarms from operating its business.

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 reasonable assumptions
and estimates of management of the Company at the time it was 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 ability to
receive further drawdowns under the Loan Financing
which are
based on expansion milestones and ongoing satisfaction of debt
covenants; risks relating to debt service and debt covenants;
uncertainties associated with the Arrangement including risks relating
to the receipt of applicable shareholder approvals and completion of the
Arrangement or termination of the Arrangement in certain circumstances;
risks relating to certain directors and officers of the Company possibly
having interests in the Arrangement that are different from other
shareholders; global economic climate; dilution; Bitfarms’ limited
operating history; future capital needs and uncertainty of additional
financing; the competitive nature of the industry; currency exchange
risks; the need for Bitfarms 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 Bitfarms and the industry; network security
risks; the ability of Bitfarms 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 which could impact future result of the business of Bitfarms
include but are not limited to:
the construction and operation of
blockchain infrastructure may not occur as currently planned, or at all;
expansion may not materialize as currently anticipated, or at all; the
ability to receive further drawdowns under the Loan Financing is not
assured in the event that all or a portion of the prescribed expansion
milestones are not attained or debt covenants are not otherwise
satisfied throughout the term of the Loan Financing; the ability to
service debt obligations and maintain flexibility in respect of debt
covenants pursuant to the Loan Financing; 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; the volatility of digital currency prices;
historical prices of digital currencies and the ability to mine digital
currencies that will be consistent with historical prices; and there
will be no regulation or law that will prevent Backbone from operating
its business. The Company has also assumed that no significant events
occur outside of Bitfarms’ normal course of business.
the Company has attempted to identify important factors that could cause
actual results to differ materially, there may be other factors that
cause results not to be as anticipated, estimated or intended. 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 forward-looking information. For a more detailed description of the
risk factors and uncertainties affecting the Company, refer to the
Company’s reports filed from time-to-time with the Israeli Securities
Authority and the Tel-Aviv Stock Exchange. The forward-looking
statements contained in this press release are made as of the date of
this press release, and the Company undertakes no obligation to update
or revise them, except as required by law.