Bitfarms Ltd. Q4 FY2025 earnings call

• Moved away from legacy Bitcoin business and focused on North American HPC and AI infrastructure. • Completed three-year transformation plan nearly halfway, including stronghold acquisition, power and land securing, $588 million raise, U.S. redomicile, and new executive team. • Strategy is to design site and campus developments as powered shell or colocation facilities. • 2026 is year of execution with milestones like finalizing permits, architecture/engineering work, and go-to-market for leases. • 2027 is year of delivery with sites coming online and HPC and AI revenue beginning. • Secured power, land, and expansion capacity in key markets.

For fiscal year 2025, continuing operations (North American platform) had revenue of $229 million, a 72% year-over-year increase. Operating loss was $150 million, including non-cash depreciation of $98 million and $28 million of impairment charges. Net loss was $209 million, or $0.38 per basic and diluted share. Adjusted EBITDA was $29 million compared to $31 million in 2024.

• 2026 is year of execution with milestones like finalizing permits, continued architecture/engineering work, and go-to-market for leases. • 2027 is year of delivery with sites coming online, delivering megawatts to customers, and completing transition to premier North American HPC and AI infrastructure company. • Expect to leave Bitcoin and Bitcoin mining behind in 2026 as site developments progress.

• Permitting process is complicated with different rules, regulations, timelines across sites. • Geopolitical uncertainty could impact GPU hardware availability, though energy bottleneck is still primary concern. • Regulatory matters for converting ISA to firm service for power capacity expansion have uncertain timelines.

Q: Ben, talk about drivers for decision to go co-location at Moses Creek.

A: Evaluated multiple business models, but customer conversations showed best opportunity is pure play infrastructure development and ownership.

Q: Update on lease execution strategy.

A: Strategy is to get best terms for long-term leases, taking time to avoid negative impact on long-term value.

Q: Permits at sites and leasing environment.

A: Making good progress on permits, expecting full permitted status in coming months, and leasing driven by permitting and customer negotiations.

Q: Ver Rubin hardware availability and impact on leasing.

A: No impact expected as energy bottleneck is primary constraint.

Q: ESA progress at Panther Creek.

A: Converting ISA to firm service is regulatory matter, expected this year but timeline uncertain.

Q: Shift from GPU as a service to co-location impact on timing.

A: No impact on development timelines.

Q: Timeline for expanding Panther Creek capacity.

A: Regulatory conversion of ISA expected this year, and new power applications for further expansion in 2-3 years.

Q: Signing first lease and hash rate reduction.

A: Important to clear NTP for lease signing, hash rate will continue to trickle down as transition to HPC and AI continues.

Q: Utilization of generating assets in PJM capacity auction.

A: Power plants participate, and capacity payments are received but maxed out.

Q: Debt package and financing tools.

A: Compare and contrast asset and parent level financing options, markets are calm.

Q: Utilization of Bitcoin mining sites during wind down.

A: Power plants participate in PJM capacity auctions, no further investments in Bitcoin mining sites.