Bitfarms Ltd. Q1 FY2025 earnings call

• Pivoted to focus on HPC and U.S. expansion, acquiring strategic U.S. energy campuses and divesting Yguazu Bitcoin mining site.
• Bitcoin mining saw Exahash Under Management grow over 50% to 19.5 exahash, with almost no planned Bitcoin mining CapEx remaining and most miners installed.
• Secured up to $300 million from Macquarie Group for HPC and AI development, with progress on Panther Creek campus and feasibility assessments validating U.S. sites for HPC and AI conversion.

In the first quarter, Bitfarms earned and received 699 Bitcoin for total revenue of $67 million, up 33% year-over-year. Revenue from mining activities was $65 million, with about $2 million from Volta electrical services and Stronghold’s businesses. Gross mining profit was $28 million, representing a direct mining margin of 43% and an average of $40,100 per Bitcoin mined. Adjusted EBITDA was $15 million, or 23% of revenue.

• Received $50 million initial tranche from Macquarie for Panther Creek development, with $250 million available upon achieving milestones.
• Bitcoin mining business well positioned to benefit from Bitcoin upside with low CapEx.
• 2025 CapEx mostly for electrical infrastructure, funded or with financing in place.

• Potential uncertainties in macroeconomic conditions impacting HPC and Bitcoin markets.
• Dependence on successful execution of HPC development milestones and securing customers.

Q: On the HPC, AI side, what are the specifics of the $100 million CapEx not including HPC development?

A: Still in process of finalizing master site plan, with Ben Gagnon stating they're completing the plan this quarter and ballparking what $300 million can accomplish at Panther Creek.

Q: On Bitcoin mining, any further room to optimize power costs?

A: About 6% of miners remaining to be installed with higher efficiency, and PJM facilities provide more control over energy prices for flexibility.

Q: How rank Scrubgrass, Sharon, Washington State for HPC?

A: Panther Creek is top due to immediate power, scalability, and proximity; others have different qualities for different customers.

Q: Where are you in discussions with potential tenants for HPC capacity?

A: Initial conversations held, need to complete master site plan to have serious discussions with customers.

Q: Thoughts on Bitcoin HODL vs planned sales going forward?

A: Plan to use sales for operating requirements, with potential to accumulate HODL and use Bitcoin One program.