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Corporate overview

OUR STOCK: BITFY ADR / BLCM.TA

AN INTRODUCTION TO
CRYPTOCURRENCY FARMING AKA MINING

IN 2009, A NEW TECHNOLOGY WAS INVENTED FOR A DECENTRALIZED, INTERNET-BASED DISTRIBUTED LEDGER TECHNOLOGY THAT INCLUDED A NATIVE ACCOUNTING TOKEN. THIS TECHNOLOGY, THE FIRST OF WHICH WAS BITCOIN, IS KNOWN AS “BLOCKCHAIN” TECHNOLOGY. IN 2009, A NEW TECHNOLOGY WAS INVENTED FOR A DECENTRALIZED, INTERNET-BASED DISTRIBUTED LEDGER TECHNOLOGY THAT INCLUDED A NATIVE ACCOUNTING TOKEN. THIS TECHNOLOGY, THE FIRST OF WHICH WAS BITCOIN, IS KNOWN AS “BLOCKCHAIN” TECHNOLOGY.

Since the creation of Bitcoin in 2009, there have been 1,000 different cryptocurrencies created. As of November 25, 2017, these cryptocurrencies have a combined market valuation of $280 billion and are owned by an estimated 15 million wallets. The fundamental principle governing the scalability, security, and adoption for Blockchain networks is the requirement for decentralized “farms” or “mines” which can physically exist anywhere on the planet as long as they are connected to the internet. These farms provide significant computing power that, depending on the algorithm employed, requires increasing amounts of electrical energy over-time to computer complex computations as a “proof of work”. By virtue of this act, the computing power provided by these farms secures and authenticates the integrity of the blockchain networks preventing a malicious actor from changing the contents of the ledger. It also means there is not one single point-offailure to shut down the network. In exchange for investing the upfront capital and providing this integral service, farmers are rewarded with ongoing fees in the form of transaction fees and newly created cryptocurrencies at various intervals depending on each blockchain networks algorithm.

OUR

COMPETITIVE ADVANTAGE

Bitfarms™ and its principals have been involved with cryptocurrency since 2009. We have invested in and operated blockchain farms around the world. Building on this experience, we have learned how to operate a successful cryptocurrency farming operation, what to focus on, and what risks to avoid. Over the last three years, we have developed a proprietary business model that has enabled us to lock-up substantial low-cost clean power capacity and a stable supply of computing chips from the leading manufacturers.

We own and operate 100% of our farms in what is a vertically integrated operation where we design, construct, and operate our facilities using a team that has grown to 80 employees and contractors.

Our founders have unique technical experience in designing, building, operating, and scaling server farms and data centres having founded one of the largest independent hosting companies in Canada.

We have a strong reciprocal relationship with Bitmain and Antminer, the largest ASIC chip manufacturer in the world and operator of the largest cryptocurrency mining pool.

We have become one of the largest consumers of power from Quebec Hydroelectric and have negotiated substantial discounts on longterm clean power contracts.

We own our own electrical contracting company with 34 employees and 12 trucks allowing us to manage 24/7 shifts and ambitious work schedules.

We believe that cryptocurrency prices will continue to rise over the long-term and focus on holding our surplus coins as long-term investment with prudent diversification of our portfolio into precious metals and investment properties.