Bitfarms Ltd. Q4 FY2025 earnings call

Ben Gagnon discussed the bold transformation in 2025 to focus on North American HPC and AI infrastructure, walking away from legacy Bitcoin business. They completed re-domiciliation to the US and rebranded as Keel Infrastructure on April 1. They have a 3-year transformation plan, nearly halfway through, with 2026 focused on execution, 2027 on delivery. They secured power, land, and expansion capacity in key markets. Jonathan Mir talked about balance sheet optimization, successful $588 million convertible offering, repaid Macquarie debt, and current cash position of $520 million providing runway for site development. The team has added talent, engaged industry leaders as partners, and has a clear execution plan with six areas: talent, partners, capital, Bitcoin exit, power assets, and speed to power.

For fiscal year 2025, revenue was $229 million, up 72% year-over-year. Operating loss was $150 million including noncash depreciation of $98 million and $28 million of impairment charges. Net loss was $209 million or a $0.38 loss per basic and diluted share. Adjusted EBITDA was $29 million compared to $31 million in 2024. The company transitioned from Bitcoin mining to focusing on North American HPC and AI infrastructure development, with the Paso Pe facility in Paraguay classified as held for sale, so continuing operations are solely the North American platform.

2026 is about execution, with milestones like finalizing permits, continuing architecture/engineering, and securing leases. 2027 is about delivery with sites coming online and revenue beginning. They expect to leave Bitcoin mining behind in 2026 as site developments progress. They have a 2.2 gigawatt pipeline and see catalysts like lease execution, securing expansion capacity, and delivery in 2027 driving reratings.

Q: Mike Grondahl asked about the decision to go with colocation at Moses Creek and lease execution strategy.

A: Ben Gagnon said they evaluated multiple models but colocation is best for maximizing shareholder value and they'll be patient to get best lease terms.

Q: Brett Knoblauch asked about permits at sites and leasing environment.

A: Ben Gagnon said permits are complex but making progress, and permits are closing conditions to leases.

Q: Stephen Glagola asked about sequencing between notice to proceed and lease execution.

A: Ben Gagnon said investment-grade customers want notice to proceed.

Q: Stephen Glagola asked about Vera Rubin hardware availability.

A: Ben Gagnon said energy is still a bottleneck so no impact on leasing.

Q: Michael Donovan asked about ESA progress at Panther Creek.

A: Ben Gagnon said converting ISA to ESA is regulatory matter, expect this year.

Q: Brian Kinstlinger asked about shift from GPU as a service to colocation and memory shortage.

A: Ben Gagnon said no delay in development, memory shortage not in their calculus.

Q: Martin Toner asked about Panther Creek expansion timeline and first lease.

A: Ben Gagnon said expansion could be 2-3 years, first lease depends on NTP.

Q: Michael Colonnese asked about data center construction timeline and hash rate reduction.

A: Ben Gagnon said 2027 is delivery year, hash rate scaling down with disciplined exit.

Q: Nick Giles asked about Panther Creek and Scrubgrass in PJM capacity auction.

A: Ben Gagnon said they participate and maxed out capacity payments.

Q: Greg Pendy asked about redomiciling to US implications.

A: Ben Gagnon said benefits like index inclusion, no cost/flexibility issues.

Q: Bill Papanastasiou asked about Washington site shift and Bitcoin mining maintenance CapEx.

A: Ben Gagnon said no impact on capital commitments, no further investments in Bitcoin mining sites