Bitfarms (NASDAQ:BITF) used its fiscal 2025 earnings call to outline a significant strategic shift away from Bitcoin mining and toward developing high-performance computing (HPC) and artificial intelligence (AI) data center infrastructure in North America, a transition Chief Executive Officer Ben Gagnon described as a “deliberate and consequential transformation.”
Gagnon said the company has moved to make “100% of our focus on North American HPC infrastructure development,” adding that “in time” the company expects to have “no Bitcoin.” He also announced that, effective April 1, the company expects to complete a U.S. re-domiciliation and finalize a rebranding to Keel Infrastructure, with trading under a Keel ticker expected to begin two business days after the transaction closes on Nasdaq and the TSX.
Strategic pivot: from Bitcoin mining to powered shell and colocation
He noted that Bitfarms had previously evaluated offering GPU-as-a-service at its Moses Lake, Washington site, but said recent customer conversations drove a shift to a colocation model. In response to analyst questions, Gagnon said the decision was based on the company’s view that “the best opportunity for us is to just remain a pure play infrastructure developer and owner and let these customers who really want these megawatts lease these megawatts.”
Asked whether the Moses Lake shift would affect prior commitments, Gagnon told Chardan’s Bill Papanastasiou there was “no impact on the capital commitments and the equipment we’ve already purchased” and added that the change “helps to reduce the CapEx ’cause we’re no longer paying for the compute.”
Development pipeline and permitting milestones
Gagnon framed the company’s transformation in a three-year plan. He described fiscal 2025 as a foundational year, 2026 as “all about execution,” and 2027 as “all about delivery,” when sites are expected to come online and begin generating HPC and AI revenue.
He said near-term milestones center on three sites—Panther Creek, Sharon, and Moses Lake—across “three simultaneous and active work streams”:
- Finalizing permits, which he said the company expects to complete “in the coming months.”
- Architecture and engineering work informed by customer requirements.
- Go-to-market and lease execution aimed at “highly financiable leases with investment-grade tenants.”
On permitting, Gagnon declined to list specific permits by jurisdiction, calling the process complex, but told Cantor Fitzgerald’s Brett Knoblauch that based on current visibility and community engagement, the company expects that “sometime around the mid to late summertime, we should be achieving the full permitted status across at least one, if not all of the sites.”
Gagnon also said interest in Panther Creek increased after zoning was secured in February, calling it a “proof point” that “investment-grade tenants value de-risk sites where they can move from lease to revenue fast.”
Leasing strategy and conditions to proceed
Management repeatedly emphasized that lease economics are closely tied to development risk and that the company is focused on achieving better terms by advancing permitting and related milestones. Gagnon said the company’s approach has been to take the time needed to “get the best terms in a lease,” particularly for “10- to 15-year agreements.”
On sequencing, Gagnon told KBW’s Stephen Glagola that investment-grade counterparties typically want a “notice to proceed” (NTP) before committing to a binding lease. “For a customer to commit to binding, in our view, they’re going to want NTP,” he said, while acknowledging some customers might sign earlier but “those aren’t the investment-grade counterparties that we’re really seeking to engage with.”
He also said leasing activity is underway across all three primary sites and that customers are engaged under mutual nondisclosure agreements. “The first site to get leased is likely to be the first site to be permitted,” he said.
Financial results: higher revenue, larger losses amid non-cash items and derivatives
Chief Financial Officer Jonathan Mir said the fiscal 2025 results reflect changes in reporting, including the classification of the Paso Pe facility in Paraguay as “held for sale” as of the third quarter of 2025. As a result, “all revenues, operating costs, and asset balances associated with Paso Pe are treated as discontinued operations” in fiscal 2025 financials, and Mir said “continuing operations” refers to the company’s North American platform.
Mir reported fiscal 2025 revenue of $229 million, up 72% year-over-year. The company posted an operating loss of $150 million, including $98 million of non-cash depreciation and $28 million of impairment charges. That compared with an operating loss of $28 million in 2024, which included $102 million of depreciation and $4 million of impairment charges.
Net loss for 2025 was $209 million, or $0.38 per basic and diluted share, compared with a net loss of $7 million, or $0.02 per share, in 2024. Mir attributed year-over-year differences to several factors, including changes in the fair value of digital assets “primarily due to the decline of Bitcoin prices,” realized gains on Bitcoin disposals, a $68 million loss tied to changes in derivative assets and liabilities, and higher impairment charges. Adjusted EBITDA was $29 million versus $31 million in 2024.
Liquidity, capital strategy, and a “disciplined Bitcoin exit”
Both executives emphasized liquidity and balance sheet flexibility as the company advances projects through permitting and leasing. Mir said Bitfarms issued an “oversubscribed” $588 million convertible offering and repaid the Macquarie debt facility in February, which he said eliminated legacy debt and freed the company from covenants. Mir described the repayment as a strategic decision that strengthens the balance sheet and improves financing flexibility for future projects.
As of March 27, 2026, Mir said liquidity stood at $520 million in cash and Bitcoin, which he said provides “the runway to advance Panther Creek, Sharon and Moses Lake through lease execution without accessing capital markets,” though he said the company could pursue financing if attractive opportunities arise.
Mir outlined a financial strategy based on three principles—capital allocation, capital formation, and capital structure—highlighting that construction funding could include project- or parent-level debt and equity or equity-linked offerings.
On the wind-down of Bitcoin mining, Gagnon said the company plans to keep mining running until sites require preparation for construction to “maximize free cash flow before selling the miners,” while also selling Bitcoin “opportunistically…into strength” to reinvest in infrastructure. Responding to questions about maintenance spending, he said, “We’re not making any investments into the Bitcoin mining sites. Basically, we’re just continuing to keep them up and running.”
Asked about interim cash generation, Gagnon confirmed that the company’s power plants participate in PJM capacity auctions and that the company benefits from capacity payments, though he said the payments have “kind of maxed out” based on auction ceilings.
Looking ahead, Gagnon reiterated the company’s expectation that the Panther Creek, Sharon, and Washington projects begin delivering megawatts and generating customer revenue in 2027, with more project-specific visibility expected after NTP is achieved and leases are signed.
About Bitfarms (NASDAQ:BITF)
Bitfarms Ltd. is a publicly traded, vertically integrated Bitcoin mining company listed on the NASDAQ under the ticker BITF. The company engages in the large-scale operation of cryptocurrency mining farms, leveraging specialized computing hardware to validate and secure the Bitcoin blockchain. By converting electrical energy into computing power, Bitfarms plays a critical role in processing transactions on the Bitcoin network and earning mining rewards.
Bitfarms operates data centers in several jurisdictions with access to low-cost, primarily renewable energy sources.
