The Credibility of Bitfarms’ Financial Reporting
Please see the disclaimer at the end of this presentation.
At Bitfarms, our internal controls practices and the integrity of our financial reporting are among our highest priorities. The effectiveness and efficiency of our controls, systems, and processes are integral to our ongoing success. Our business model rests on a foundation of accurate and transparent financial disclosure that completely and truthfully represents the Company’s financial and operational performance. We believe this is one factor that sets us apart from our peers. Amidst corporate failures, bankruptcies, and financial restatements, internal controls over reporting and disclosure are being brought into question across the crypto space.
Bitfarms Governance Controls
We have strict and specific standards when it comes to governance controls surrounding our business activities and reporting and we adhere to them religiously. Bitfarms has devoted and will continue to devote substantial resources to establishing and maintaining our controls and reporting standards, backed by a top-notch accounting and finance team comprised of experienced and qualified CPAs, several with many years of public auditing experience with major accounting firms. Our entire organization recognizes and respects the systems in place, upholding the same ideals as our leadership and governance.
Our assets are protected assiduously. We rigidly adhere to a counterparty risk assessment that is comprehensive, strict, and disciplined. By retaining control of all our unencumbered Bitcoin in separate accounts with regulated custodians, we never lend them out or allow custodians or lenders to rehypothecate our Bitcoin. Bitfarms has chosen to forego interest income in the form of yield from lending our BTC to third parties, and by not doing so we have avoided risks that jeopardize the accessibility and recoverability of these valuable digital assets.
Consistent with how we manage our BTC, Bitfarms has always sought to partner with companies and service providers whose principles and priorities are aligned with ours. We changed mining pools due to controls not meeting our governance standards. Our prioritization of such controls and protocols demands that we actively search – in every aspect of our business – for partners that are the right match, top to bottom.
Bitfarms is one of the only publicly traded industrial-scale mining companies that is audited by a Big Four accounting firm and has been since 2018. This speaks to both our high standards and our commitment to the integrity of our financial reporting. Furthermore, the resources a Big Four brings to the crypto space enable us to be on top of the latest developments and thinking in terms of auditing standards and reporting practices.
Evolving with the Same Priorities
Over our five years of operating experience, we have advanced our reporting standards and continuously raised the bar. Starting in June 2021, Bitfarms became one of the first publicly traded mining companies to issue monthly production updates, and we are the only company that consistently publishes these results on the first trading day of the following month. Our monthly production updates include consistent KPI’s and other performance metrics and are largely seen as the gold standard of the industry.
More recently, we launched a completely revamped website centered around the transparency of our operations. Our mining operations, sites, miner fleet, electric efficiency, power consumption, and power sources are consistently reported and available for anyone to view and model. We believe that, to date, we are the only mining company that provides that level of information about their operations and key figures.
Bitfarms is in a very dynamic and fast-moving industry that is establishing new boundaries and regulations. While we cannot assure that control and reporting issues won’t arise, by making our controls, systems, and processes among our highest priorities, we are confident we are minimizing this risk and providing investors the transparency and quality reporting that our nascent, high potential industry of BTC mining requires. These are uncertain and turbulent times for crypto companies; we at Bitfarms are committed to upholding the same ideals as those when we started the Company in 2017.
For more information on Bitfarms, visit www.bitfarms.com.
Disclaimer Regarding Forward-Looking Information:
This blog presentation has been issued as a matter of interest to investors and other followers of Bitfarms Ltd. This presentation contains forward-looking information and Bitfarms cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Bitfarms. 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. In particular, the ability of the Company to maintain the integrity of financial reporting and safe custody of digital assets is forward-looking information. There can be no assurance that internal controls will be effective or otherwise provide for accurate financial reporting. There can be no assurance that measures taken for the safe custody of digital assets will be effective or that applicable laws or regulatory bodies will provide adequate remedies or recovery for any failure of safe custody. Readers should not place undue reliance on forward-looking information. Please refer to other risks set out in the public documents of Bitfarms filed on https://www.sedar.com/. Securities regulators including the Toronto Stock Exchange and Nasdaq have not reviewed the information disclosed in this blog presentation and no securities regulator accepts responsibility for the adequacy or accuracy of this content.” The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.