• Revenue: $56 million in Q4 2024, up 21% from Q3.
• Bitcoin Mined: 654 BTC in Q4 2024.
• Direct Mining Profit: $26 million, representing a 47% margin.
• Net Income: $15 million or $0.03 per share in Q4 2024.
• Adjusted EBITDA: $14 million or 25% of revenue in Q4 2024.
• Cash and Liquidity: Approximately $135 million as of March 26, 2025.
• CapEx Requirements: Reduced to less than $100 million for 2025.
• Hash Rate: 18.6 exahash under management.
• Energy Capacity: Increased by over 90% to 461 megawatts.
• Hash Cost: Reduced to roughly $22 per petahash.
• Operating Loss: $16 million in Q4 2024.
• Direct Mining Cost per Bitcoin: $40,800 in Q4 2024.
• All-in Cash Cost to Mine Bitcoin: $60,800 in Q4 2024.

• Warning! GuruFocus has detected 2 Warning Sign with BITF.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bitfarms Ltd (NASDAQ:BITF) has significantly increased its hash rate to 18.6 exahash, improving efficiency by 45% and reaching its Q2 2025 efficiency guidance ahead of schedule.
• The company has expanded its energy capacity by over 90% to 461 energized megawatts per day, with a pipeline of over 1.4 gigawatts, primarily based in the US.
• Bitfarms Ltd (NASDAQ:BITF) has reduced its hash cost by nearly 50%, providing a foundation for higher profitability and cash flow through 2026.
• The company has completed a transformative acquisition of Stronghold Digital Mining and a strategic sale of its Yguazu site, enhancing its portfolio and capitalizing on US growth opportunities.
• Bitfarms Ltd (NASDAQ:BITF) has initiated a new Bitcoin One strategy, building on the success of its synthetic caudal program, which achieved a 135% return in US dollar terms.

Negative Points

• The company faces regulatory challenges in expanding its energy capacity, with approvals potentially taking 12 to 36 months.
• Bitfarms Ltd (NASDAQ:BITF) has no immediate plans for large miner purchases in 2025 or 2026, which may limit its ability to quickly scale operations if market conditions change.
• The transition to HPC and AI infrastructure requires significant investment and time, with feasibility studies and customer due diligence processes potentially delaying monetization.
• The company's focus on US-based operations may lead to further divestment of profitable sites in Latin America, impacting its geographic diversification.
• Bitfarms Ltd (NASDAQ:BITF) is exposed to potential fluctuations in Bitcoin prices and mining economics, which could affect its profitability and cash flow projections.

Q & A Highlights

Q: Could you provide an update on the regulatory stance and timing for using the stronghold sites for AI and HPC capacity rather than Bitcoin mining? A: Ben Gagnon, CEO: For the existing generating and grid import capacity at the stronghold site, no further regulatory approval is needed. However, for additional megawatts under study and application, approvals could take 12 to 36 months. Immediate power capacity is available now, with potential for HPC use in 2026.

Q: Can you break down the expected CapEx for 2025, particularly how much is allocated to Bitcoin mining versus infrastructure for AI and HPC? A: Jeffrey Lucas, CFO: Of the $95 million CapEx for 2025, only about $7 million is for miner logistics. The majority is allocated to infrastructure development, particularly at the stronghold and Sharon facilities, with some work in Quebec and Argentina.

Q: What are the due diligence timelines for potential HPC and AI customers, and what kind of setup would they likely use at your facilities? A: Ben Gagnon, CEO: Hyperscalers typically have a due diligence timeline of 9 to 12 months. They may start with powered land and progress to powered shell setups. The timeline to energization is crucial for driving value in HPC deals.

Q: With the focus on North American energy and HPC infrastructure, is there potential for further divestment of your South American portfolio? A: Ben Gagnon, CEO: The South American sites are profitable and generating free cash flow, unlike the Yguazu site, which required significant investment. While we are open to opportunities, the current focus is on maintaining profitable operations.

Q: How do you address potential clients' concerns about Bitfarms' experience in HPC development, given your background in Bitcoin mining? A: Ben Gagnon, CEO: We emphasize our strategic advisors and internal team, who fill knowledge gaps and help us leverage our core competencies in Bitcoin mining for HPC and AI. This approach has been well-received by potential clients.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.