Bitfarms Ltd. Q2 FY2025 earnings call

Bitcoin Mining Update: - Installed over 12,000 miners, completed Bitcoin mining growth plans. - Shut down Argentina mining operation by November 11, 2025, due to rising costs and unreliable electricity. - Improved key performance indicators: energy efficiency up 1%, average electricity price improved 2%, direct hash costs improved 5%, uptime up 2%. - Sold miners and expects proceeds from Argentina shutdown to be ~$18 million. ### North American Energy Portfolio and HPC/AI Potential: - Unique energy portfolio in North America with significant presence in Quebec, Pennsylvania, and Washington. - Pennsylvania portfolio has over 1 gigawatt in pipeline, with Panther Creek campus advancing rapidly, including grid connection approval and expanded acreage. - Washington portfolio is strategically located with low-cost energy. - Quebec has potential for converting crypto mining megawatts to data center megawatts, though regulatory approval needed. ### Other Highlights: - Launched stock buyback program, repurchased ~5 million shares in first 2 weeks. - Plan to transition to U.S. GAAP for full year 2025 results, moving towards U.S. redomicile in 2026.

In the second quarter, Bitfarms earned 718 Bitcoin, achieving total revenue of $78 million. Revenue from mining activities was $71 million, with gross mining profit of $32 million representing a direct mining margin of 45% and an average direct cost of $48,200 per Bitcoin mined. The Bitcoin mining segment contributes significantly, while the HPC and AI segment is in development phase.

Forward-Looking Statements: - Expect to continue generating ~$8 million per month free cash flow from Bitcoin mining operations. - Panther Creek development to proceed with Macquarie financing, with Phase 1 50 megawatts by end of 2026 and Phase 2 300 megawatts as early as 2027. - Continued focus on executing HPC and AI initiatives, with first HPC revenue at Panther Creek dependent on customer conversations. - Intend to continue share buyback program using excess cash flow from mining operations.

Risks: - Regulatory approval needed for converting crypto mining megawatts to data center megawatts in Quebec, with no clear path. - Market undervaluation of Bitfarms' Bitcoin business and HPC potential. - Execution risks in developing HPC and AI infrastructure, including delays in customer negotiations and construction timelines.

Q: What's the game plan for getting construction procurement lined up for Panther Creek?

A: Engaged T5 as owners reps, will do civil works like clearing land and substation construction over next few months, with building construction starting in first part of next year.

Q: How much is the total build-out cost for Panther Creek?

A: Envision total build-out cost around $400 million for the full facility.

Q: What's needed for Bitcoin mining conversions at Quebec data centers?

A: Requires regulatory approval to convert crypto mining megawatts to data center megawatts, with no defined path yet.

Q: How are share buybacks going forward?

A: Will continue in range of current activity, dependent on cash flow and CapEx requirements.

Q: When might HPC revenue start at Panther Creek?

A: Dependent on customer conversations, but expect power energized by back half of 2026 and first building up by end of 2026.