BITF — Bitfarms Ltd.

Summary of Bitfarms Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $229 million for FY 2025, a 72% increase year-over-year.
• Operating Loss: $150 million, which includes $98 million in non-cash depreciation and $28 million in impairment charges, compared to a loss of $28 million in FY 2024.
• Net Loss: $209 million, or $0.38 per share, compared to a net loss of $7 million, or $0.02 per share, in FY 2024.
• Adjusted EBITDA: $29 million, slightly down from $31 million in 2024.
• Liquidity: $520 million in cash and Bitcoin, providing significant financial flexibility.

2. Strategic Updates and Business Highlights

• Business Transformation: Bitfarms is transitioning from Bitcoin mining to focus entirely on High-Performance Computing (HPC) and AI infrastructure, rebranding as "Keel Infrastructure."
• Infrastructure Development: The company has over 2 gigawatts of power in its pipeline, positioning itself as a leader in North American HPC infrastructure.
• Site Development: Active projects include Panther Creek, Sharon, and Moses Lake, with a focus on co-location facilities rather than GPU-as-a-service.
• Permitting Progress: The company is working towards finalizing permits across its sites, expecting to achieve full permitted status in the coming months.

3. Forward Guidance and Outlook

• 2026 Focus: Emphasis on execution with expectations to finalize permits and secure leases, aiming for revenue generation to commence in 2027.
• Long-term Vision: By the end of 2027, Keel Infrastructure aims to be a proven developer in the HPC and AI space, with plans to scale to over 2 gigawatts by 2028.
• Market Positioning: The company believes it is well-positioned to capitalize on the increasing demand for AI infrastructure due to its secured power and strategic locations.

4. Bad News, Challenges, or Points of Concern

• Operating Losses: The significant increase in operating and net losses raises concerns about the financial sustainability during the transition period.
• Bitcoin Mining Decline: The company is phasing out its Bitcoin mining operations, which may impact cash flow until new revenue streams are established.
• Regulatory Risks: The permitting process is complex and varies by jurisdiction, posing potential delays in site development.
• Market Competition: The company faces competition from established players in the HPC and AI infrastructure space, which could impact lease negotiations and market share.

5. Notable Q&A Insights

• Lease Execution Strategy: Management emphasized a patient approach to lease execution, prioritizing favorable terms over speed, which may delay initial revenue.
• Permitting Process: Permits are seen as a closing condition for leases, and the company is optimistic about achieving full permits by mid to late summer.
• Impact of GPU Supply: Management does not foresee supply chain issues affecting lease discussions, as power remains the primary bottleneck in the market.
• Transitioning from Mining: The company is not investing in Bitcoin mining and is focused on maximizing cash flow from existing operations until the transition to HPC is complete.

Overall, Bitfarms is undergoing a significant transformation towards HPC and AI infrastructure, with a strong liquidity position but facing challenges related to its transition from Bitcoin mining and the complexities of the permitting process.