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Bitfarms NASDAQ: BITF executives used a recent investor presentation to detail the company’s strategy to transition from Bitcoin mining toward high-performance computing (HPC) and artificial intelligence (AI) data center infrastructure, emphasizing the growing value of power and purpose-built facilities amid rising demand from hyperscalers and enterprise customers.
Management’s market thesis: infrastructure as a constraint
Chief Operating Officer Liam Wilson said the company’s core thesis is that “infrastructure is not a bubble,” arguing that compute supply has expanded exponentially over decades and that AI is accelerating demand for data center capacity. He said the constraint is no longer capital or semiconductor production, but “power and infrastructure,” as chips can be produced faster than facilities can be built and energized.
Wilson pointed to rising lease economics as evidence of the bottleneck. He said data center lease rates, which grew roughly 3% on average over the last 20 years, have increased at an average of about 12% since 2022. He also cited industry commentary around a future power shortfall for data centers by 2030 and referenced a public statement by Microsoft’s CEO that the company has GPUs it cannot deploy due to infrastructure constraints.
Three strategic actions: build first, price later, and target next-gen GPUs
Wilson said Bitfarms plans to avoid “signing leases prematurely” and instead optimize for higher rates and margins by:
- Prioritizing infrastructure development to reduce the time between contract signing and revenue generation, which management said can minimize discounting tied to execution risk.
- Leveraging the supply-demand gap to lock in higher rates and margins under multi-year agreements once sites are closer to delivery.
- Designing for NVIDIA’s next-generation “Vera Rubin” GPUs across 99% of its 2026 and 2027 development portfolio, rather than focusing on NVIDIA’s Blackwell generation. Wilson said Vera Rubin infrastructure requirements are “largely incompatible” with Blackwell-designed facilities, and Bitfarms expects this could create stronger economics in 2027.
Energy portfolio and site updates across the U.S. and Canada
Wilson said Bitfarms’ power portfolio is concentrated in regions it views as higher value, emphasizing cooler climates and access to fiber infrastructure. He contrasted northern locations such as Pennsylvania, Washington, and Quebec with hot climates like Texas, stating that cooling needs materially affect efficiency and costs. As an example, he said a similar design could have an estimated power usage effectiveness (PUE) of about 1.4–1.5 in Texas versus roughly 1.2–1.3 in Pennsylvania, Quebec, or Washington.
Key site-specific points included:
- Moses Lake, Washington (18 MW): Wilson said the region has a “10-year waitlist for power” and described Moses Lake as part of a major West Coast data center cluster. Bitfarms is pursuing colocation opportunities and is also evaluating a potential GPU-as-a-service strategy for the site, citing low power costs and the relatively small scale as potential advantages. He said converting Moses Lake to GPU-as-a-service could, in management’s view, generate more annual net operating income than the company has ever generated from Bitcoin mining.
- Panther Creek, Pennsylvania: Wilson described Panther Creek as Bitfarms’ flagship HPC/AI campus with 350 MW of secured power under contract, including 50 MW targeted for delivery at the end of 2026 and 300 MW at the end of 2027. He said the project has acreage to develop the full amount and potentially expand. Wilson also noted $200 million remaining on a Macquarie project facility intended to finance phase one and long-lead items for phase two. He added the company has received positive indications that could support an increase to 410 MW and referenced a load study indicating potential expansion to more than 500 MW of gross capacity.
- Sharon, Pennsylvania (110 MW): Wilson said the company has 110 MW secured under an energy services agreement and is currently operating 30 MW of Bitcoin mining at the site. Bitfarms has begun development on an additional 80 MW substation, with a goal to have the full 110 MW substation online by year-end 2026. The company is targeting site completion and revenue in the first half of 2027, with infrastructure designed for Vera Rubin GPUs.
- Quebec (170 MW): Wilson said Bitfarms operates 170 MW of low-cost hydropower across multiple Bitcoin mining sites, which are 100% renewable, and said the company confirmed in the last month that it can convert those MWs to HPC/AI use. He said most sites are within a 90-minute drive of Montreal and described potential appeal to hyperscalers using a “regional campus strategy” that links smaller sites with low-latency fiber. Bitfarms plans to focus development in Sherbrooke (96 MW), using standardized design work from its Washington site, and will evaluate a potential cloud strategy in 2027. The remaining 74 MW are earmarked for potential expansion in 2028, with more detailed plans expected in 2026.
- Scrubgrass, Pennsylvania: Wilson described Scrubgrass as the only portfolio site not fully secured today, but said it represents a longer-lead “gigacampus” opportunity outside Texas with potential capacity above 1 GW. He said Bitfarms has completed conceptual load studies with FirstEnergy up to 750 MW and is moving toward a detailed load study and eventual firm service agreement. He also said the company is evaluating additional on-site generation tied to a potential pipeline connection to the Tennessee Gas Pipeline, which he said could supply up to 550 MW of natural gas. Combined, he said these pathways could potentially provide 1.3 GW of gross capacity, with earliest large-scale power implementation anticipated around 2028.
Financing, liquidity, and timeline to “notice to proceed”
Chief Financial Officer Jonathan Merne said the company’s Q3 presentation reflected a recently completed convertible financing that raised $590 million in proceeds. He also reiterated the $200 million remaining on the Macquarie Panther Creek facility and said the company’s Bitcoin operations generate about $8 million per month, which he characterized as supporting operating costs and funding investment.
Merne said Bitfarms has $750 million of “unencumbered liquidity” plus $200 million available under the Macquarie facility, and that the balance sheet allows the company to advance Washington, Sharon, and Panther Creek through “notice to proceed” (NTP)—the stage when permits and approvals allow construction to begin—without external capital. He said management expects to reach NTP for the three sites in the second half of 2026, with revenue potential “late 2027.”
On capital strategy, Merne described an infrastructure-style approach using project finance at the asset level and indicated the company is focused on avoiding three pitfalls: running out of money before NTP, over-leveraging, and “building on spec” without a lease. He also discussed the need for equity alongside debt in project financing and said the company may consider options such as selling minority interests at the project level or additional converts, while indicating that an at-the-market common equity program would be “completely unattractive” at current levels.
Commercialization approach and U.S. pivot
During Q&A, executives said inbound interest has increased, particularly over the prior three months, with Wilson highlighting unexpected demand for both the Sharon facility and the 18 MW Moses Lake site. He said other facilities are not yet at a stage where the company wants to actively market them, as Bitfarms believes lease negotiations carry meaningful discounting until projects are closer to NTP. Merne added that the company is balancing lease-price maximization against balance sheet limits and shareholder expectations.
Wilson also summarized broader corporate steps as part of Bitfarms’ U.S. pivot, including the recent sale of its Paso Pe facility as a full exit from Latin America, the company’s transition to U.S. GAAP for 2024–2025 results, the establishment of a New York City office, and work toward a potential U.S. redomiciliation in 2026.
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.
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