BITF Earnings Prediction
The chart below shows how BITF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BITF sees a +2.36% change in stock price 10 days leading up to the earnings, and a -8.54% change 10 days following the report. On the earnings day itself, the stock moves by +5.76%. This data can give you a slight idea of what to expect for the next quarter's release.
BITF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
56.16M
21.46%
25.22%
Gross Margin
2.47%
-35.00%
-109.40%
Operating Margin
-35.63%
66.89%
-59.43%
Net Margin
27.00%
120.12%
-133.04%
EPS
0.03
114.29%
-137.50%
No Data Available
BITF Earnings Analysis
Bitfarms Ltd Corporation (BITF.O) Earnings Conference Call
Positive
Hashrate and Efficiency Improvement: Bitfarms has nearly tripled its hashrate to 18.6 Exahash under management and improved efficiency by 45%, reaching 19 watts per terahash three months ahead of schedule.
Energy Capacity Expansion: The company has increased its energy capacity by over 90% to 461 energized megawatts a day and built an energy pipeline of over 1.4 gigawatts, with nearly 80% based in the US.
Energy Cost Reduction: Bitfarms has reduced its expected average price of power to $0.043 per kilowatt hour, significantly lowering energy costs and driving a nearly 50% reduction in hash cost to roughly $22 per terahash.
Portfolio Transformation and Efficiency: The acquisition of Stronghold Digital Mining and the sale of the Yguazu data center have transformed Bitfarms' portfolio, allowing for greater scale and operational efficiency.
CapEx Reduction and Reinvestment: The company has reduced its planned CapEx requirements for 2025 to less than $100 million, 20% lower than initially planned, freeing up capital for reinvestment in US infrastructure.
Gigawatt Energy Potential: Bitfarms has secured a gigawatt of potential in the US, opening up new opportunities in energy generation, trading, and HPC and AI.
Leadership Expansion in HPC and AI: The company has made key hires in HPC and AI, bringing in experienced leaders to drive growth in these areas.
Strong Mining Margins: Bitfarms' Bitcoin mining business remains strong, with a direct mining margin of 47% and a cash profit per Bitcoin of over $22,600 in Q4 2024.
Liquidity and CapEx Support: The company has a total liquidity of approximately $135 million, providing sufficient funds to support its identified CapEx for 2025.
Free Cash Flow Outlook: Bitfarms expects to generate free cash flow in 2025 and 2026, even in challenging macro conditions, due to its competitive energy prices and improved mining efficiency.
Negative
Operating Loss Challenges: The company reported an operating loss of $16 million in the fourth quarter, indicating challenges in managing operational costs despite revenue growth.
High Administrative Expenses: Cash, general and administrative expenses were notably high at $14 million, which included unusual and non-recurring professional services fees of $1.3 million, suggesting potential inefficiencies in cost management.
Net Financial Income Concerns: The company experienced a net financial income of $22 million, largely driven by gains on derivative assets, which may not be sustainable in the long term, raising concerns about the reliance on such financial instruments for profitability.
Bitcoin Mining Outlook: Despite a strong performance in Bitcoin mining, the company acknowledged a probable correction in mining economics in 2026, which could impact future profitability and cash flow.
Capital Expenditure Projections: The anticipated capital expenditures for 2025 are projected to be under $100 million, but this is significantly lower than previous estimates, indicating a potential slowdown in growth initiatives and infrastructure development.
Scaling Operations Limitations: The company has no identified plans for large miner purchases in 2025 or 2026, which may limit its ability to scale operations in response to market demand.
Regulatory Approval Delays Revenue: The regulatory approval process for monetizing power generation from their plants is ongoing, which could delay potential revenue streams from HPC and AI initiatives.
BITF FAQs
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BITF Earning Call Sentiment
Bitfarms Ltd. (BITF) Q4 2024 Earnings Call Transcript
BITF.O
2.54%Positive
The company's financial performance shows improvement with a 21% revenue increase and positive net income, but regulatory and competitive risks remain significant. The Bitcoin One strategy is promising, but uncertainties in regulatory approvals and competitive pressures in Bitcoin mining temper optimism. Q&A reveals delays in regulatory approvals and unclear timelines for projects, adding uncertainty. With a market cap of $1.07 billion, the stock is likely to experience modest movements, resulting in a neutral prediction for the next two weeks.
