Loading...
01/11 18:31
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a strategic shift towards HPC and AI, with strong free cash flow from Bitcoin operations and a stock buyback program. The Q&A section highlights confidence in GPU acquisition and promising customer conversations. Despite some uncertainties, the overall sentiment is bolstered by strategic initiatives and financial strength, suggesting a positive stock movement.
Total Revenue $84 million from continuing and discontinued operations. Revenue from continuing operations was $69 million, representing a year-over-year increase of 156%. The increase was driven by higher Bitcoin production and revenue.
Bitcoin Mined 520 Bitcoin mined in Q3 2025. The average direct cost per Bitcoin mined was $48,200. The all-in cost per Bitcoin was $82,400, but after considering a net gain of $13.3 million from derivatives, the effective all-in cost was reduced to $55,200.
Gross Mining Profit $21 million, representing a gross mining margin of 35%. This was due to increased Bitcoin production and revenue.
Adjusted EBITDA $20 million or 28% of revenue, up from $2 million or 8% of revenue year-over-year in Q3 2024. The improvement was driven by higher revenue and operational efficiencies.
Cash G&A $14 million, down from $20 million in Q3 2024. The reduction was largely driven by lower professional services costs.
Operating Loss $29 million for the quarter, including an impairment charge of $9 million of nonfinancial assets.
Net Loss $46 million or $0.08 per share. This includes the operating loss and other financial impacts.
Transition to HPC and AI infrastructure: Bitfarms is advancing its transformation into a leading North American HPC and AI infrastructure company, focusing on next-generation data centers for NVIDIA's Vera Rubin GPUs.
GPU as a Service: Bitfarms is exploring GPU as a service at its Washington site, which could generate higher margins and surpass Bitcoin mining cash flows.
Market demand for data center infrastructure: The demand for data center capacity is accelerating due to AI, with lease rates for data center infrastructure growing at an average rate of 12% since 2022.
Strategic location advantages: Bitfarms' energy assets are located in high-demand areas like Pennsylvania, Quebec, and Washington, offering advantages such as low-cost renewable energy and proximity to major metros.
Energy portfolio and site-specific advancements: Bitfarms has secured power in strategic locations, including 350 MW in Pennsylvania, 170 MW in Quebec, and 18 MW in Washington, with plans to convert these to HPC and AI infrastructure.
Financial position: Bitfarms has over $1 billion in financial flexibility, including cash, Bitcoin, and a project facility with Macquarie, to fund its HPC/AI initiatives.
Exit from Latin America: Bitfarms is completing its exit from Latin America, including the sale of its Paso Pe facility, to focus on North American operations.
Focus on long-term shareholder value: The company is prioritizing high-value, long-term contracts and infrastructure development to maximize margins and shareholder value.
Data Center Infrastructure Bottleneck: The exponential increase in demand for power and infrastructure for data centers is outpacing the growth in supply, creating a bottleneck. This could lead to challenges in meeting market demands and higher costs for infrastructure development.
Rising Lease Rates: Lease rates for data center infrastructure have been increasing significantly, from an average of 3% growth over 20 years to 12% since 2022. This trend could increase operational costs and impact profitability.
Cooling Challenges in Hot Climates: Operating data centers in hot climates like Texas leads to higher CapEx and OpEx for cooling, reducing efficiency and increasing costs compared to cooler climates.
Regulatory and Power Allocation Challenges: Securing power allocations in regions like Quebec is becoming increasingly difficult, with new power allocations almost impossible to obtain. This could limit expansion opportunities.
Dependency on Future GPU Technology: The company’s strategy heavily relies on the successful development and adoption of NVIDIA’s Vera Rubin GPUs. Delays or issues with this technology could impact Bitfarms’ plans and profitability.
Long Lead Times for Power Development: Developing new power capacity, such as at the Scrubgrass campus, involves long lead times, potentially delaying revenue generation and increasing project risks.
Economic and Financing Risks: The company’s reliance on convertible notes and project-specific financing introduces risks related to interest rates, market conditions, and potential equity dilution.
Transition Risks from Bitcoin Mining to HPC/AI: The transition from Bitcoin mining to HPC/AI infrastructure involves significant operational and strategic risks, including potential delays, cost overruns, and execution challenges.
Revenue Growth: Bitfarms expects lease rates for data center infrastructure to continue growing, with analysts predicting a massive shortfall of nearly 45 gigawatts of power for data centers by 2030. This is expected to drive higher lease rates and margins for the company.
Infrastructure Development: The company plans to prioritize infrastructure development to minimize the time between signing leases and generating revenue. Bitfarms aims to develop next-generation data centers for NVIDIA's Vera Rubin GPUs, targeting completion of key projects in 2026 and 2027.
Market Trends: The demand for data center capacity is accelerating due to the exponential growth in compute and AI. Lease rates for data center infrastructure have grown at an average rate of 12% since 2022, and this trend is expected to continue.
Capital Allocation: Bitfarms has over $1 billion in financial flexibility to fund its HPC/AI growth initiatives, including the build-out of its Washington site and initial phases of construction at other key sites. The company plans to use a mix of corporate and project-level financing to support its development plans.
Strategic Focus: The company is transitioning its energy assets to HPC and AI infrastructure, with plans to convert its Washington site to GPU as a service or cloud. This strategy is expected to generate above-market margins and returns.
Future Expansion: Bitfarms is exploring the potential to expand its Panther Creek campus to over 500 megawatts of gross capacity and its Scrubgrass campus to 1.3 gigawatts of gross capacity by 2028.
The selected topic was not discussed during the call.
The earnings call presents a strategic shift towards HPC and AI, with strong free cash flow from Bitcoin operations and a stock buyback program. The Q&A section highlights confidence in GPU acquisition and promising customer conversations. Despite some uncertainties, the overall sentiment is bolstered by strategic initiatives and financial strength, suggesting a positive stock movement.
The earnings call indicates a strategic pivot towards HPC and AI, backed by a $300 million partnership with Macquarie Group, which is a strong positive catalyst. Although management avoided specifics on revenue and EBITDA margins, the overall sentiment is positive due to the strategic U.S. expansion and the Panther Creek development. The market cap suggests moderate volatility, supporting a positive outlook.
The earnings call reveals a mix of positive indicators: a 33% YoY revenue increase, better-than-expected EPS, and strong free cash flow from mining operations. The strategic acquisition and infrastructure plans are promising, though some concerns arise from operating losses and management's vague responses in the Q&A. However, market sentiment is likely to be buoyed by the optimistic outlook for Bitcoin and the company's growth strategies, leading to a positive stock price movement in the short term, especially given the small-cap nature of the stock.
The earnings call presents mixed signals. While the company has shown strong financial metrics with a 33% revenue increase and secured significant financing for HPC and AI development, there are concerns. These include operating losses, tariff risks, and vague responses in the Q&A regarding infrastructure development. Additionally, the anticipated CapEx under $100M for 2025 and the strategic acquisition of Stronghold could support future growth. However, the lack of clear guidance and potential financial strain from large capital expenditures balance out the positive aspects, leading to a neutral sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
