Bitfarms .(US:BITF)2025-11-13 14:02Financial Data and Key Metrics Changes - In Q3 2025, Bitfarms achieved total revenue of $84 million, with $69 million from continuing operations, representing a year-over-year increase of 156% in revenue [40][41] - Gross mining profit was $21 million, with a gross mining margin of 35% and an average direct cost of $48,200 per Bitcoin mined [41] - Adjusted EBITDA from continuing operations was $20 million, or 28% of revenue, up from $2 million, or 8% of revenue year-over-year in Q3 2024 [42] Business Line Data and Key Metrics Changes - The company introduced a new program for digital asset management, Bitcoin 2.1, aimed at offsetting Bitcoin production costs and achieving higher value per Bitcoin sold [41] - The all-in cost per Bitcoin from continuing operations was $82,400, which, after accounting for net gains from derivatives, effectively reduced to $55,200 [42] Market Data and Key Metrics Changes - The demand for data center infrastructure is accelerating, with lease rates growing at an average rate of 12% since 2022, compared to 3% over the previous 20 years [8][10] - Analysts predict a massive shortfall of nearly 45 GW of power for data centers by 2030, confirming the increasing demand for HPC and AI infrastructure [10] Company Strategy and Development Direction - Bitfarms is transitioning to become a leading North American HPC and AI infrastructure company, focusing on optimizing lease rates and margins [5][12] - The company plans to prioritize infrastructure development, take advantage of the supply-demand gap, and develop infrastructure for NVIDIA's next-generation Vera Rubin GPUs [12][13] - The strategic focus includes converting existing Bitcoin mining sites to HPC and AI workloads, with significant developments planned in Washington and Pennsylvania [20][25][30] Management's Comments on Operating Environment and Future Outlook - Management expressed high conviction in the value of their energy portfolio and the demand for power, emphasizing the strategic location of their megawatts [16][19] - The company is well-capitalized with over $1 billion available for funding development projects, indicating strong financial health and a clear vision for future growth [44][45] Other Important Information - The company has secured 170 MW of operating power in Quebec, with plans to convert Bitcoin mining infrastructure to HPC and AI, representing a unique opportunity to increase data center capacity [19][29] - A successful convertible note offering raised $588 million, enhancing financial flexibility and supporting ongoing development initiatives [38][39] Q&A Session Summary Question: Can you share more on how you guys are thinking about economics for Vera Rubin GPU infrastructure? - Management highlighted that the increasing shortage of infrastructure will drive economics, with higher energy density requirements for next-generation GPUs leading to greater economic incentives for deployment [47][49] Question: What is the expected timeline for expanding power capacity at Panther Creek and Scrubgrass? - Management indicated that positive indications for power capacity expansion have been received, with potential quick conversions subject to regulatory approval [59][60] Question: Can you clarify the counterparty to the $128 million critical IT supply agreement for Washington? - The agreement is with a large publicly traded American national company that supplies data center equipment and services, enhancing the facility's attractiveness for both colocation and cloud services [72] Question: What are the biggest challenges to meeting timelines for Washington, Sharon, and Panther Creek? - Management noted that construction bottlenecks are hard to forecast, but having strong partners and project management teams in place mitigates risks [78] Question: What is the expected CapEx for 2026? - Management stated that CapEx figures for 2026 are still being finalized, with more clarity expected in Q1 as NVIDIA completes reference designs for the Vera Rubin infrastructure [79][80]