Bitfarms Ltd. Q4 FY2024 earnings call

• Transformed from international Bitcoin miner to North American energy and compute company, tripling hashrate and improving efficiency, increasing energy capacity, and building a large US energy pipeline. • Completed acquisition of Stronghold Digital Mining and divested Yguazu data center. • Advanced HPC and AI strategy with hires, participation in NVIDIA GTC, and engagement of strategic advisors. • Initiated Bitcoin One program as a continuation of Synthetic HODL, focusing on Bitcoin treasury management. • Filled key management positions and revamped operational structure.

Bitfarms has transformed into a US-focused energy and compute company. In the Bitcoin compute portfolio, since January 1, 2024, hashrate nearly tripled to 18.6 Exahash Under Management, efficiency improved by 45% to 19 watts per terahash (ahead of schedule), and hash cost reduced to roughly $22 per terahash. In the energy portfolio, energy capacity increased to 461 energized megawatts a day, energy pipeline over 1.4 gigawatts with nearly 80% in US, and average power price reduced to $0.043 per kilowatt hour.

• 2025 CapEx expected to be less than $100 million, 20% lower than initial plan. • No large miner purchases planned for 2025 or 2026, focus on developing US energy and HPC infrastructure. • Bitcoin mining portfolio derisks business through 2026, providing cash flow and low CapEx foundation. • Anticipate HPC and AI to create lasting shareholder value with tangible steps taken to advance the business.

• Uncertainty in regulatory approvals for HPC infrastructure, with timelines ranging from 12 to 36 months. • Market conditions affecting Bitcoin price and mining economics could impact profitability. • Delays in regulatory processes for power applications and interconnection agreements may slow HPC development.

Q: Bill Papanastasiou asks about AI/HPC hosting terms.

A: Ben Gagnon says deal structures vary, triple-net leases common, market healthy with robust interest.

Q: Bill Papanastasiou asks about South American portfolio divestment.

A: Ben Gagnon says Latin American sites are profitable, Yguazu divestment was due to non-operating status with high costs.

Q: Brian Dobson asks about framing Bitfarms' past experience for HPC.

A: Ben Gagnon says importance of strategic advisors and internal team to bridge knowledge gap for HPC development.