Bitfarms .(US:BITF)2025-03-27 15:59Financial Data and Key Metrics Changes - In Q4 2024, the company earned 654 Bitcoin, generating total revenue of $56 million, which is a 21% increase compared to Q3 2024 [58] - Direct mining profit was $26 million, representing a direct mining margin of 47%, with an average of $39,000 per Bitcoin mined [59] - The company reported net income of $15 million or $0.03 per share, compared to a net loss of $37 million or $0.08 per share in the previous quarter [60] Business Line Data and Key Metrics Changes - The Bitcoin compute portfolio has nearly tripled its hashrate to 18.6 Exahash under management and improved efficiency by 45%, reaching 19 watts per terahash [8][9] - The energy portfolio increased energy capacity by over 90% to 461 energized megawatts per day, with a reduced expected average price of power to $0.043 per kilowatt hour [10] Market Data and Key Metrics Changes - The U.S. now represents 33% of the energized megawatts in the company's portfolio, expected to increase to nearly 80% in the coming years [11] - The company has secured a growth pipeline of energy assets that could scale its Pennsylvania infrastructure portfolio to over a gigawatt in the coming years [16] Company Strategy and Development Direction - The company has transformed from an international Bitcoin miner to a North American energy and compute company, focusing on growth opportunities in the U.S. and high-performance computing (HPC) [7] - The strategic rationale for acquiring Stronghold and selling Yguazu is to rebalance the portfolio towards the U.S., reduce average power costs, and minimize capital expenditures [20] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on Bitcoin mining economics for 2025, expecting significant shareholder value creation from the existing fleet and footprint [71] - The company anticipates a correction in mining economics in 2026 but believes it will return to healthy levels, providing a strong foundation for future growth [71] Other Important Information - The company has no plans for large miner purchases in 2025 or 2026, focusing instead on developing U.S. energy and HPC infrastructure [49][57] - The strategic sale of the Yguazu facility reduced planned capital expenditures for 2025 to less than $100 million, 20% lower than originally planned [18] Q&A Session Summary Question: Update on Stronghold sites and regulatory approvals - Management indicated that existing generating capacity at Stronghold does not require further regulatory approval, but additional megawatts under study may take 12 to 36 months for approvals [76][78] Question: CapEx allocation for 2025 - Approximately $95 million is expected for capital expenditures, with only $7 million allocated for miners, while the majority will go towards infrastructure development [81][82] Question: Timeline for HPC/AI customer due diligence - Due diligence timelines for hyperscalers are typically 6 to 12 months, with opportunities for powered land construction starting in advance of deals [88][90] Question: Target for 21 Exahash and future miner purchases - The company is currently at 18.6 Exahash and expects to reach 21 Exahash with ongoing upgrades, but has no plans for large miner purchases [93][96] Question: Clarification on available megawatts at Pennsylvania sites - There are currently 142 megawatts of active data center capacity available, with plans to expand beyond that depending on infrastructure investments and regulatory approvals [102][104]