Q3 2025 Bitfarms Ltd Earnings Call

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After the speaker presentation, there will be a question and answer session.

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Dr. Ramon one one again.

I would now like to hand, the call over to Jennifer drew bear from bit farms Investor Relations. Please go ahead.

Ben Gagnon: I now have the pleasure to hand the call over to our new CFO, Jonathan Mur. Turning to slide 14, Jonathan, over to you. Thank you, Ben, for the warm introduction. I'm excited to join Bitfarms at this pivotal moment in the company's transformation. My principal objectives as the new CFO are centered around capital allocation, capital sourcing, and capital structure. I'm working hand in hand with the operations and development teams on the ground to ensure we implement financing plans that are appropriate for the company and its assets, efficient, and support long-term shareholder value creation, and that we are also allocating capital to its best possible risk-adjusted returns. With an extensive background in energy infrastructure strategy and financing, I believe there's an extraordinary opportunity to use our strong balance sheet, unique assets, and the talents of our people to create value in the high-growth HPC AI space.

Thank you and welcome to the farms third quarter 2025 conference call.

With me on the call today are Bang, Daniel Zhang Chief Executive Officer and director.

And Jonathan <unk>, our Chief Financial Officer.

Before we begin please note this call is being webcast with an accompanying slide presentation todays press release and our presentation can be accessed on our website at <unk> dot com under the Investor section.

Turning to slide two.

I'd like to remind everyone that certain forward looking statements will be made during the call and that future results could differ from those implied in the statements.

The forward looking information is based on certain assumptions and are subject to risks and uncertainties named by each consultant bid farms and DNA for a complete list.

Ben Gagnon: I look forward to working closely with the team to deliver on our strategy and capture the exceptional long-term shareholder value that would accompany our successful execution. Turning to slide 15, today, Bitfarms has the strongest balance sheet and most available capital in the company's history. In Q3, we were able to execute across several initiatives. First and foremost, we recently completed a very successful convertible note offering where we were able to upsize the offering to $588 million while improving on pricing, preserving upside, and minimizing potential equity dilution through a 125% capped call. Bitfarms chose to issue convertible notes because they allow us to access capital at a lower coupon than straight debt and with less dilution than straight equity. The cash-settled capped calls we purchased allow us to offset economic dilution up until $11.88 per share, representing a significant premium to the share price today.

Please note that references will be made to certain measures not recognized under ifr and therefore may not be comparable to similar measures presented by other companies.

We invite listeners to refer to today's press release, and our MD&A for definition of the aforementioned non <unk> measures and their reconciliations to ifr as measures. Please note that all financial references are dominated in U S dollars unless otherwise noted.

And now turning to slide three it is my pleasure to turn the call over to Bank Gagnon, Chief Executive Officer and director Ben. Please go ahead.

Good morning, everyone and welcome to pit farms third quarter 2025 earnings call. We've made strong steady progress in Q3 building on the momentum from the first half of the year as we advance our transformation into a leading north American <unk> and AI infrastructure company.

Today, I'll walk you through our investment thesis value proposition and key developments, including updates on our energy portfolio and site specific advancements all of which you've spit farms, a competitive advantage to capitalize on the surge in demand for HBC and AI infrastructure.

Ben Gagnon: It is also important to highlight that investor commitment to Bitfarms is strong. 100% of institutional investors that management met with during the marketing process participated in the transaction, and invested their capital in Bitfarms. We're thrilled with the outcome of this raise, and it will allow us to advance our pipeline in tangible ways. Second, we converted our previously announced $300 million debt facility with McCrory to a project-specific financing facility dedicated to the development of our Panther Creek data center. Moving the debt facility from the corporate level to the asset level materially enhances financial flexibility for the entire company. In October, we drew an additional $50 million from the facility in order to accelerate development of the site, for a total of $100 million drawn to date.

Turning to slide four.

I would like to kick off today's call by outlining our market thesis one that we believe differentiates us from our peers and best aligns with farms with long term investors in our transition to HBC and AI.

Infrastructure is not a bubble.

Since the invention of modern compute to supply of compute has increased exponentially.

As <unk> grows so too does the data center industry that powers it.

This is a trend that has a trajectory of over 20 years of exponential growth and an annualized growth rate of eight 8% behind at.

Ben Gagnon: Finally, we maintained steady and efficient mining operations throughout the quarter, achieving approximately $8 million in monthly free cash flow after G&A. We expect to use this cash flow to support our HPC AI development projects. Looking ahead, we anticipate continuing to use a mix of both corporate-level and project-level debt and equity financing as we advance our project milestones. On an ongoing basis, we will evaluate a wide range of opportunities and choose those that we believe support both a strong, stable balance sheet, and realize the full potential shareholder value creation that would accompany the successful execution of our plans and fund milestone objectives. Turning to slide 16, let's focus now on our third-quarter financial performance. In Q3, we achieved a total revenue of $84 million from continuing and discontinued operations.

This isn't a bubble it's.

It's a reflection of a new paradigm that showed no signs of slowing down before AI and now as AI rewrites the rules of how humans interact with computers the demand for data center capacity is accelerating.

But the demand for compute and infrastructure has reached an impasse.

Data centers they used to be measured in kilowatts are now being measured in megawatts in gigawatts.

Racks that used to support 10 kilowatts are now being designed to support 370 kilowatts.

The exponential increase in demand for power can no longer be met at the pace of the market demands and.

And as a result, the lease rates for data center infrastructure, which has grown at an average rate of 3% over the last 20 years are now growing at an average rate of 12% since 2022, and we expect this trend to continue.

Ben Gagnon: With the intention to sell the Paraguay site in order to complete our Latin American exit, all revenue from that asset is classified as discontinuing operations. From continuing operations, we earned 520 Bitcoin and achieved revenue of $69 million, representing a year-over-year increase of 156% in revenue. For our continuing operations, our gross mining profit was $21 million, representing a gross mining margin of 35% and an average direct cost of $48,200 per Bitcoin mined. During the third quarter, we introduced a new program for digital asset management, Bitcoin 2.1, which is designed to offset Bitcoin production costs and achieve higher value per Bitcoin sold as a low-cost, low-risk funding mechanism for the energy infrastructure investments that define Bitfarms going forward. It is important to highlight that we are not a Bitcoin treasury company.

Turning to slide five.

Infrastructure is a bottleneck.

As manufacturers continually introduce newer more efficient chips and increased production every year. This trend continues to accelerate.

Next year nobody alone is expected to be shipping somewhere between 10, and 15 Gigawatts of Gpus.

And that doesn't include of course, AMD, Intel and Qualcomm and others, who are also producing their own hardware with over 100 Gigawatts of chips expected to be produced by 2030.

While the supply of compute shifts continues to increase the growth in data center infrastructure is happening at a much slower pace.

It is not silicon nor capital that will be the real bottleneck for continued growth in HBC, NII, but power and infrastructure.

Over the next few years the gap between the amount of ships that are being produced and the megawatts in the racks available to plug them in and operate them, we'll continue to widen significantly.

Ben Gagnon: The goal of this program is not to accumulate Bitcoin, but rather to offset the production cost of Bitcoin and, by doing so, contribute to cost-effectively funding our HPC AI initiatives. This is a multi-strategy program that primarily sells both short and long-dated out-of-the-money covered calls on the Bitcoin and treasury, as well as forward Bitcoin production. During Q3, we incurred an all-in cost per Bitcoin of $82,400 from continuing operations. When considering our net gain of $13.3 million from derivatives against our all-in production costs, it would bring the effective all-in cost down to $55,200. Cash G&A for Q3 was $14 million, compared to $20 million in Q3 2024. The improvement was largely driven by lower professional services costs. Operating loss from continuing operations was $29 million for the quarter, including impairment charge of $9 million of non-financial assets.

We strongly believe that adds to this dynamic continues to play out the value and the economics will continue to move in favor of those who own the energy and data center infrastructure.

We've watched this play out in the market with the contracts that have been announced in the industry to date.

When core scientific and core we've announced their landmark transaction in April of last year. The rates were contracted around a $120 per kilowatt per month.

As we've moved further along the curve that's shown on the slide those rates have continued to trend up work most of the contracts over the past few months has been around $150 per kilowatt per month.

As time goes on this trend is expected to continue with analysts predicting a massive shortfall of nearly 45 gigawatts of power for data centers by 2030.

Just within the last two weeks such as <unk>, the CEO of Microsoft confirm the shortfall when he publicly stated on our recent podcast that they have gpus they cannot deploy.

Ben Gagnon: As a result, net loss from continuing operations for Q3 was $46 million, or $0.08 per share. For the third quarter, our 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, and up from $9 million, or 15% of revenue in Q2 2025. Turning to slide 17, before we begin Q&A, I'd like to reiterate our strong financial position and review our expected capital investment plans for the next 12 months. We are extremely well-capitalized to fund our HPC AI growth initiatives. We have a war chest of over $1 billion comprised of roughly $820 million in cash and Bitcoin, and the remaining $200 million available to draw from our McCrory facility.

We believe that over time the companies who've allocated and we will continue to allocate billions of dollars in the compute will be increasingly economically incentivized to pay rising prices in order to deploy their compute faster and with greater certainty.

Every day, they do not deploy is a Dave revenue they will never recover and because their customers will simply move on to a competitor.

With direct operating margins for new Gpus, typically in the 80% or 90% range. This infrastructure expense as a modest cost driver for those who are on the compute.

To a low single digit percentage of Opex.

If this cost were to double it would not impact direct opex for the customer by more than a low single digit percentage.

Ben Gagnon: With these funds, we expect to be able to fully finance the build-out of our Washington site and the initial phases of construction at our Sharon, Sherbrooke, and Panther Creek sites. As we advance our development, the actual investment in our projects will be dependent on a number of factors. We are currently focused on executing on the initial phases of our projects, beginning construction, and securing long lead-time items to ensure our project timelines. We will continuously evaluate a wide range of financing alternatives at both the corporate and project level. Maximizing shareholder value with accretive financing will determine our choices, as well as the need for a healthy balance sheet.

These rates, which are largely inconsequential for the customer are very significant for bit farms as the developer.

With Opex costs that are largely fixed every additional dollar earned in a lease goes to the bottom line.

This is what <unk> is aiming to optimize for.

The fastest contract, but the highest value per megawatt and the greatest margins for the longest period of time with great customers.

We believe this will be the primary driver of our multiple expansion and what trucks shareholder value creation long term.

Ben Gagnon: In closing, I'll underscore that Bitfarms is in the strongest financial position in the company's history, and we have a clear vision of how we are going to best utilize this capital to advance our HPC AI build-outs in North America. The entire Bitfarms team is incredibly enthusiastic and engaged about the opportunities ahead. With that, I'll now turn the call over to the operator for Q&A. I'm Ben. To ask a question, you will need to remove yourself from the queue. You may press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mike Colonies of HPC Wainwright. Please go ahead, Mike. Hi, good morning, guys. Appreciate all the color in the HPC strategy this morning. First, for me, Ben, you mentioned that infrastructure for the Vera Rubin GPU should command a premium to the Blackwell infrastructure.

Our investment thesis is clear and backed by decades of data.

Our conviction is high backed by consistent incoming demand we.

We don't want to cap, our upside by signing leases prematurely.

Instead bid farms plants to optimize and achieve higher lease rates and margins through the following three strategic actions.

One prioritize infrastructure development first by minimizing the time between signing the lease and generating revenue for a customer we will minimize the discounts that would otherwise be applied to the lease rates and locked into multiyear contracts.

Two.

Take advantage of the increasing gap between supply of data center infrastructure and data center demand to lock in higher rates and greater margins under multi year agreements and.

And three.

While the industry is focused on Nvidia GBP 200, and GBP 300.

Did firms' plans to leapfrog and videos Blackwell architecture and lead the industry in developing infrastructure for new videos next generation Vera Rubin Gpus across 99% of our 2026 and 2027 development portfolio.

Ben Gagnon: Can you share more on how you guys are thinking about economics there and the CapEx differences? Thanks, Mike. Yeah, happy to speak to that a little bit. There's kind of two driving forces there with our expectations on Vera Rubin and economics. The first is that as the dynamic continues to play out where the infrastructure is going to be an increasingly greater and greater shortage, there's going to be a driver there that will drive the economics. The second part of this is that the economics around supply and demand imbalance are really specific to GPU models. If you look at H100s, H200s, the GBs, the 200s and 300s, and then what's going to be the next series, the VR, there's a lot more infrastructure available to support those older GPUs, which have less specific requirements.

With Vera Rubin GP is expected to begin shipping in Q4 of 2026 and the infrastructure requirements to support them largely incompatible with facilities designed for Blackball Gpus, We believe there Reuben infrastructure will be in the greatest demand and shorter supply in 2027.

And we will command significantly greater economics.

Turning to slide six.

We are able to take this approach because we have a robust balance sheet to fund development and know the value of what we own.

While we don't have the largest portfolio of power among the public miners, who are transitioning to HCP NII, we do have the largest portfolio of power in each of the regions in which we operate.

Ben Gagnon: When you look at what's going to happen with the VR series, the energy density is going up from 190kW per rack with the GB300s to upwards of 370kW per rack with the VR200s. A lot of the infrastructure that's being built right now is not going to be compatible with the next generation. As companies allocate all this money into those Vera Rubin GPUs, they're going to be very economically incentivized to deploy them. What I spoke to with regards to our investment thesis earlier today is that as this dynamic continues to play out, would you rather sit on your GPUs and not deploy them, or would you rather pay a higher infrastructure expense in order to deploy them and start monetizing the asset?

None of which are in Texas, and all of which are either existing or emerging data center hubs.

With consistent inbound demand for our sites, we have high conviction in the value of our unique energy portfolio the demand for our power and our ability to develop next generation HBC and AI infrastructure.

We believe that not all megawatts are created equal.

Our megawatts are strategically located in high value areas that have multiyear waitlist to secure the power we have today.

Our campuses are close to major metros and existing data center clusters have ample access to major fiber trunk clients in undersea fiber optic cables and benefit from temperate climates compared to places like Texas.

Ben Gagnon: Really, the margins are so high on these GPUs, especially when the GPU is the newest, most cutting-edge, state-of-the-art GPUs, as the Vera Rubins will be in 2027, that the economic incentive to deploy those faster with very few options available should drive higher economics. We do not have a firm price point of exactly where that is going to lie, but we think the trend is abundantly clear that the economics next year and in 2027, they are just going to continue to get better and better, especially as the shortfall continues to get exacerbated. Really helpful color there, Ben. What should we think about the wind down of your mining operations in the coming years, specifically as it relates to the pace and timing of Hashira coming offline as you start to convert and make further progress in converting your data centers over to HPC AI?

While Texas is undisputedly, a great energy market and arguably the easiest market to grow and develop megawatts in the U S. There are of course tradeoffs.

The tradeoff to short term development efficiencies is long term operating inefficiencies.

No secrets that besides power the primary challenge with data centers as cooling and.

And cooling is becoming an increasingly more difficult problem to solve as energy density continues to increase with every generation of new hardware.

Building, an operating data centers in a hot arid desert like climate like Texas as opposed to cooler northern climates, like Pennsylvania, Washington, and come back it needs more capex and Opex for cooling.

This isn't an opinion it's.

It's math and engineering.

We built our exact same datacenter for Panther Creek with the same design equipment and materials in Texas. It would have a <unk> of about one four to about one five.

Ben Gagnon: Yeah, happy to speak to that. I mean, the first area is the LATAM that we've been working on. We obviously shut down our Argentina facility earlier this year. I think one of the big areas here is the Paraguay facility, which is an asset that's being held for sale. That represents around a little bit under 20% of our hash rate, so that will impact the hash rate for the company rolling forward. When we look at transactions like this, just like how we looked at the economics around shutting down the Argentina facility, we expect to pull forward a significant amount of expected free cash flow from those operations today so that we can reinvest them more immediately in the US, in North American HPC and AI infrastructure, to greater effect.

Whereas in Pennsylvania, Quebec, our Washington, It would be about one two to one three.

That means for every megawatt we're converting more of those electrons or going to compute which is the revenue generating activity for customers as opposed to supporting revenue generation through cooling.

Simply put.

Our megawatts are harder to get and higher demand areas.

Produce more value for customers and are worth more per megawatts.

In Pennsylvania, we have the strategic foresight to acquire our three campuses and submit our energy applications in 2024 before the HBC NII demand really came into play in the state earlier. This year. This is positioned us with secured power Panther Creek, and Sharon and at the front of the queue with very well advanced power applications scrub.

Ben Gagnon: While it should have an impact on the free cash flow from operations, really the impact is very mitigated by the fact that we're taking one to two years' worth of free cash flow from operations and bringing it forward for reinvestment now. We also have the risking factor with regards to having less and less Bitcoin exposure, or Bitcoin mining exposure, I should say. As we move forward through 2026, the next sites that would be coming offline would be coming offline as we develop the HPC and AI infrastructure, and they would get replaced. Washington would probably happen sometime in the middle of the year. That would be about 1x a hash, and everything else would kind of come off slowly as we convert over the facilities to HPC and AI.

With consistent inbound demand for our sites, we have high conviction in the value of our unique energy portfolio. The demand for our power and our ability to develop Next Generation, HPC, and AI infrastructure.

Dress.

In Quebec, New power allocations are almost impossible to get with numerous data center applications denied by the province in the past year.

We believe that not all megawatts are created equal.

<unk> has 170 megawatts operating with some of the cheapest power rates for data centers in North America, and 100% renewable.

Our megawatts are strategically located in high-value areas that have multi-year weight list, to secure the power we have today.

100% of these megawatts are currently being utilized for bitcoin mining and just in the last month, we confirm that we will be able to convert our bitcoin megawatts for HBC and AI.

Our campuses are close to major metros and existing data centers. Clusters have ample access to major fiber trunk lines and undersea fiber optic cables, and benefit from temperate climates compared to places like Texas.

This means our Quebec portfolio represents a unique and strategic opportunity to increase total data center megawatts in the province by 25% from about 700 megawatts today.

While Texas is undisputable a great energy market and arguably the easiest Market to grow and develop, megawatts in the US. There are of course, trade-offs

While fulfilling two strategic national and provincial objectives, the scaling back of bitcoin mining megawatts, while increasing HBC NII infrastructure and data sovereignty.

Is long-term operating inefficiencies.

Ben Gagnon: It would be a bit of an orderly transformation, and we'll continue to update the market as we announce those plans. Great. Thank you for taking my questions. Thanks, Mike. Thank you. Our next question comes from the line of Brett Noble of Canter Fitzgerald. Please go ahead, Brett. Hi, guys. Thanks for taking my question. Thanks for allowing the color on the different sites throughout the call. I guess when it comes to maybe your PA sites and getting additional power, I feel like that's kind of like the biggest catalyst maybe over the near term. I believe Stronghold was kind of in queue before you guys went out and acquired it, which was probably, I don't know, over a year ago now. Do you have any idea on an update of when you expect to maybe expand the power capacity at those Panther Creek and Scrubgrass?

It is no secret that, besides power, the primary challenge with data centers is cooling.

In Washington, We had 18 megawatts of secured power in the largest datacenter cluster on the west coast with the cheapest power in the U S for data centers and 100% renewable.

The cooling is becoming an increasingly more difficult problem. To solve as energy density, continues to increase with every generation of new hardware.

Because of this the area has a 10 year wait list for power.

Building and operating data centers in a hot arid desert lake climate like Texas as opposed to cooler. Northern climates like Pennsylvania, Washington, and combat needs more capex and Opex for cooling.

Everybody is looking to grow here and it is nearly impossible to do so outside of secured megawatts like ours.

This isn't an opinion.

It's math and engineering.

This means that despite the relatively smaller scale of Washington sites in the area are in high demand by both enterprise and Hyperscale are alike.

If we built our exact same data center for Panther Creek with the same design equipment and materials in Texas, it would have a PE of about 1.4 to about 1.5.

I would now like to spend a few minutes discussing Washington, and the news we issued this morning in more detail.

Whereas, in Pennsylvania, Quebec or Washington, it would be about 1.2 to 1.3.

Turning to slide seven.

Earlier. This morning, we announced plans for the conversion of our 18 megawatt Washington site to HBC and AI workloads.

Ben Gagnon: Is that a couple of months thing, within six months thing? How should we think about the timing there? Thanks, Brett. Yeah, it's a pretty exciting development there at Panther Creek because just over the last couple of weeks, we've received positive indications on the conversion of the ISA to an ESA, as well as the expansion with an additional load study. It's a little too early to say exactly when that would come onto site. What we're planning here is an additional phase three and phase four, which would come likely after phase two. It's possible that the conversion of the ISA to an ESA could happen very quickly because all of the infrastructure is in place. There's no investments that need to be made. It's really just subject to the regulatory approval, and signing some paperwork for all of that to be converted over.

We signed a fully funded binding agreement for $128 million for all of the critical infrastructure and building materials to develop the full 18 megawatts gross capacity with anticipated industry, leading energy efficiency between one two and one three.

That means for every megawatt we are converting. More of those electrons are going to compute which is the revenue generating activity for customers as opposed to supporting Revenue generation through Cooling.

Simply put.

Our megawatts are harder to get.

Higher demand areas.

Produce more value for customers and are worth more per megawatt.

The state of the art facility will feature one validated reference designs, ensuring compatibility and performance with <unk> three hundreds.

In Pennsylvania, we have this strategic foresight to acquire our 3 campuses and submit our energy applications in 2024 before the HBC and AI demand really came into play in the state earlier this year.

Two modular infrastructure, enabling phased deployment and scalability, reducing the downtime of bitcoin mining revenues and ramping up our time to HP C&I revenues and three proven thermal and power management systems critical for HCC and AI operations.

This is positioned us with secured power at Panther Creek and Sharon, and at the front of the queue with very well, Advanced power applications as scrub grass.

In combat, new power allocations are almost impossible to get, with numerous data center applications denied by the province in the past year.

The construction team is in Washington today, with the general contractor and are kicking off the conversion of the Washington site, which is targeted for completion in December 2026.

Ben Gagnon: I would think within phase three, it's not really clear exactly when that's going to take place, but it could happen quickly. It could take several months. When it comes to a phase four, that's likely going to be a 2028 deal. Awesome. On the GPU cloud as a service, the CapEx figure that you noted on, I guess, maybe converting that Bitcoin mining to host GPUs, that was not including the GPUs, correct? Correct. That's not including GPUs and some of the construction costs associated with converting over the facility. There will be additional expenses at the Washington site. We've had several conversations now with some of the leading GPU manufacturers, and we think that there's very attractive financing options on the GPUs as well that would really keep the CapEx requirement down to basically the infrastructure expense.

It forms has 170 megawatts operating with some of the cheapest power rates for data centers in North America and 100% renewable.

Turning to slide eight.

I would now like to discuss a monetization strategy at Washington.

100% of these megawatts are currently being utilized for Bitcoin mining and just in the last month we confirmed that we will be able to convert our Bitcoin megawatts for HBC and AI.

With decade long lead times for new power and the cheapest power in the U S. For data centers. We are actively pursuing co location for both Hyperscale and enterprise, where we can capitalize on the long lead times as previously discussed.

This means our Quebec portfolio represents a unique and strategic opportunity to increase total data center megawatts in the province by 25%, from about 700 megawatts today.

This morning for the first time, we announced we are also pursuing GPU as a service or cloud.

While fulfilling two strategic national and provincial objectives.

While our focus is on developing next generation Vera Rubin infrastructure across most of our portfolio. We believe there are some compelling reasons to potentially go with cloud as a monetization strategy and Moses Lake specifically.

The scaling back of Bitcoin, mining megawatts, while increasing HBC and AI infrastructure and data sovereignty.

One.

In Washington, we have 18 megawatts of secured power in the largest data center. Cluster on the west coast with the cheapest power in the US for data centers and 100% renewable.

GPU as a service would enable us to capture the benefit the lowest cost power for data centers in the U S for ourselves.

Because of this, the area has a 10-year wait list for power.

Ben Gagnon: We'd be able to fund potentially up to 100% of the compute through these GPU manufacturers, which could be done on what we believe to be really attractive terms. We also think that it would provide a significantly greater return profile on doing GPU as a service or cloud. From a capital allocation, I guess, standpoint, what is your guys' preference? Obviously, the PA sites appear to be leaning more towards colocation, Washington site cloud. Do you guys expect to kind of grow both businesses at the same time? Is there a preference for one to kind of get online sooner than the other? The expectation is that the Washington site will be the first site that's fully online.

And generate what we expect to be above market margins and returns for cloud.

Everybody is looking to grow here and it is nearly impossible to do. So outside of security megawatts like ours,

To the.

The relatively smaller scale makes a lot of the site easier to execute and finance, we have more than enough liquidity to consider to the site and strategy fully funded today and are in active discussions with leading GP manufacturers on GPU sourcing and financing, which we believe could be done on very attractive terms.

this means that despite the relatively smaller scale of Washington sites in the area are in high demand by both Enterprise and hyperscalers alike.

I’d now like to spend a few minutes discussing Washington and the news we issued this morning in more detail.

Turning to slide 7.

GPU financing could materially reduce capex requirements and enhance expected returns.

Earlier this morning, we announced plans for the conversion of our 18, megawatt Washington site to HBC, and AI workloads.

Three we expect that by demonstrating our ability to execute across the entire stack. We will also be able to better understand customer needs and provide better quality service and negotiate better leases at our other facilities.

Ben Gagnon: The Sharon site will probably be the second site that's fully online because Scrubgrass, or sorry, Panther Creek is split out into those two phases in 2027 with additional phases three and phase four, which still need to be confirmed. Our priority is managing the critical paths and all the project management timelines that we have across our various facilities. When we're looking at capital and how we'd allocate it across, it's managing the critical path, and it's also making sure that when it comes to looking at the opportunities around cloud, we're doing so in a way that makes sense and is affordable. One of the benefits of doing it at Washington is a relatively smaller scale does make it very cost-effective to do it. It's something that we could consider fully funded today. It's something that we could get financing for at that scale.

Lastly, but most importantly despite.

We signed a fully funded binding agreement for 128 million, for all the critical, it infrastructure and building materials to develop the full 18 megawatts of gross capacity. With anticipated industry-leading Energy, Efficiency between 1.2 and 1.3 pee.

Despite being less than 1% of our total development portfolio.

We believe that the conversion of just our Moses Lake site to GPU as a service could produce more net operating income per year than we've ever generated with bitcoin mining.

The state-of-the-art facility will feature 1 validated reference designs ensuring compatibility and performance with Nvidia, GB 300s.

Abiding the company with a strong cash flow foundation that was done Opex G&A debt service and contribute to Capex as we wind down our bitcoin mining business.

2 modular infrastructure, enabling phase deployment and scalability reducing the downtime of Bitcoin. Mining revenues and ramping up our time to HBC Andy revenues.

And 3.

Proven thermal and power management systems critical for HPC and AI operations.

I will now walk through the rest of our sites in a bit more detail starting with Panther Creek.

Turning to slide nine.

Panther Creek is our flagship HBC and AI campus and Eastern Pennsylvania.

The construction team is in Washington today with the general contractor and our kicking off the conversion of the Washington site, which is targeted for completion in December 2026.

Turning to slide 8.

As we've discussed previously we have 350 megawatts of secured power with PPL. This powers contractually obligated to be delivered with 50 megawatts at the end of 2026 and 300 megawatts at the end of 2007. The site has sufficient acreage for the development of the entire 350 megawatts with capacity to go beyond that.

I would now like to discuss monetization strategy at Washington.

Ben Gagnon: Whereas when you're looking at the really large campuses that we have in Pennsylvania, a colocation strategy is going to be a lot easier to finance. Awesome. Thank you guys. Really appreciate it. Thank you. Thanks, Brett. Our next question comes from the line of Steven Gigola of Jones Trading. Please go ahead, Steven. Hey, Ben. On the $128 million critical IT supply agreement for Washington, can you clarify the counterparty to that agreement? Is that T5 or is that another firm? Additionally, just a follow-up to the last one on the GPU cloud model potentially at Washington and Sherbrooke, can you maybe elaborate on what factors make GPU as a service compelling relative to standard colocation in these markets? Sort of how are you evaluating both potential GPU risk and your, let's say, return on invested capital IRR hurdle for the cloud opportunity? Thank you.

With decade long, wait times for new power and the cheapest power in the US for data centers. We are actively pursuing collocation for both hyperscaler and Enterprise where we can capitalize on the long, wait times as previously discussed.

<unk>, we have $200 million remaining on our project facility with Macquarie that is intended to finance phase one of the project as well as the two long lead time expenses for phase III.

This morning, for the first time, we announced that we are also pursuing GPU as a service or cloud.

We also have some exciting news around potential further capacity expansion at Panther Creek.

Lately there have been a number of developments, including the recent 403 letter from the department of energy and commitments to deploy more natural gas energy generation in Pennsylvania that have given us line of sight to expand beyond the existing 350 megawatts of secured power capacity.

as a monetization strategy and Moses Lakes specifically,

1.

TPU as a service would enable us to capture the benefit the lowest cost power for data centers in the US for ourselves.

We have received positive indication on converting our existing interconnection service agreement or RSA 60 megawatts to affirm energy service agreement or Esa of 60 megawatts to expand power to 410 megawatts.

And generate what we expect to be above Market, margins and returns for cloud.

2.

The relatively smaller scale makes flat out the site easier to execute and finance.

And on a recent load study to expand power capacity to over 500 megawatts of growth capacity.

Ben Gagnon: Yeah, thanks, Steven. When it comes to the supply agreement that we have for the Washington site, it's not with T5. It is with a large publicly traded American national company who serves and supplies data center equipment and data center services. The facility is really an attractive facility for both colocation and cloud. When you look at the opportunities that we have here to go fully up the stack and what that might mean for the company, both in terms of a free cash flow perspective, as well as our ability to really demonstrate ourselves not only as a developer, but as an operator, I think there's a lot of tangible benefits there that will pay dividends in the long run.

We have more than enough liquidity to consider the site and strategy fully funded today. And our inactive discussions with leading GP manufacturers on GPU sourcing and financing, which we believe could be done on very attractive terms.

With these positive developments that could meaningfully expand capacity at this campus and in line with our investment thesis. We are modifying our original phase one design for black oils, Gpus and planning a new phase three and phase four.

GPU, financing could materially reduce capex requirements and enhance expected returns.

The entire campus will now be developed for in a videos Vera Rubin Gpus and Theyre greater energy density to accommodate our new expectations on future expanded power capacity.

We expect that by demonstrating our ability to execute across the entire stack, we will also be able to better understand customer needs, provide better quality service, and negotiate better leases at our other facilities.

lastly, but most importantly,

despite being less than 1% of our total development portfolio.

This is expected to delay the <unk> in a phase one marginally from December 2026 into the first half of 2027 with no anticipated impacts to phase III timelines.

We believe that the conversion of just our Moses Lake site to GPU is a service could produce more net operating income per year than we have ever generated with Bitcoin mining.

Ben Gagnon: The conversion of the site, according to our modeling and similar transactions that have happened in the market over the last couple of months, indicate that this one site could be worth significantly more than the entire Bitcoin mining business that the company has been operating for multiple years. That would provide us with a really strong free cash flow foundation as the Bitcoin mining business winds down. It'll also enable us to better understand and better learn these facilities as we're looking to provide service and work with hyperscale, enterprise customers, and NeoCloud customers on really large campuses. The benefit of doing it at this smaller facility is that we should be able to extract a lot of knowledge and value that we can apply to a lot of our other facilities as well. All right. Thank you. Thanks, Steven. Thank you.

We believe this will enable the company to achieve significantly higher economics in line with our long term thesis and strategy.

Providing the company with a strong cash flow Foundation, that would fund Opex, GNA Debt Service and contribute to capex. As we wind down, our Bitcoin, mining business,

Turning to slide 10.

Moving on to Sharon, where we have 110 megawatts of power secured by an Esa with Firstenergy in PJM under development we.

I will now walk through the rest of our sites in a bit more detail starting with Panther Creek.

Turning to slide 9.

We are currently operating 30 megawatts of bitcoin mining on site, but it started development on an additional 80 megawatt substation, bringing the total available for <unk> to a 110 megawatts.

Panther Creek is our Flagship HBC and AI campus in Eastern Pennsylvania.

As we've discussed previously, we have 350 megawatts of secured power with PPL.

We expect to have the full 110 megawatt substation online by year end 2026.

We recently closed on the purchase of the land for the site effectively ending our lease and enabling us to move forward with our planned development of HTC NII infrastructure.

This power is contractually obligated to be delivered with 50 megawatts at the end of 2026 and 300, megawatts. At the end of 2027, the site has sufficient acreage for the development of the entire 350, megawatts, with capacity, to go beyond that.

Similarly to Panther Creek, we will be working to develop the campus per barrel Reuben Gpus targeting insight completion and revenue in the first half of 2027 for the full 110 megawatts of gross capacity.

Additionally we have 200 million remaining on our project, facility with McCrory that is intended to finance Phase. 1 of the project as well as a few long lead time expenses for Phase 2.

We also have some exciting news around potential for the capacity expansion at Panther Creek.

Ben Gagnon: Our next question comes from the line of Mike Rondal of Northland. Please go ahead, Mike. Hey, Ben. Just curious, what would you describe as the two biggest challenges to maybe meeting your timelines for Washington, Sharon, and Panther Creek? What's going to be the potential bottlenecks, and how are you dealing with them? Hey, Mike. I mean, the potential bottlenecks in construction are a little hard to forecast. Construction is something that is changing every single day on the ground. I think that the key way that you mitigate potential risks in construction is having great partners with your owners rep, your general contractors, having a great team of project managers internally who are making sure they're on track of everything every step of the way, and they're trying to think forward on all the potential problems in managing those critical paths.

Turning to slide 11.

In Quebec, we have 170 megawatts of low cost hydropower currently operating across multiple bitcoin mining sites, almost all of which are within our roughly 90 minute drive from Montreal.

Lately. There have been a number of developments including the recent 403 letter from the Department of energy and commitments to deploy more Natural Gas, Energy generation in Pennsylvania that have given us line of sight to expand beyond the existing 350, megawatts of secured, power capacity,

This is an incredibly attractive opportunity for Hyperscale as we're all in what's called a regional campus strategy.

This is something that was pioneered by Amazon, where smaller sites can be directly connected with direct fiber infrastructure in order to reduce the latency between sites blow two milliseconds, enabling many sites to be connected together to function as one larger site.

We have received positive indication on converting, our existing interconnection service agreement or Isa 60 megawatts to a firm Energy service agreement or Esa of 16 megawatts to expand power to 410 megawatts.

And on a recent load study to expand power capacity to over 500 megawatts of growth capacity.

As I mentioned, it's almost impossible to grow organically in the products and in October we confirm the ability to convert over a bitcoin mining infrastructure to HBC NII with regulators and utilities in the region.

With that pathway clear, we are accelerating our plans in Quebec we.

With these positive developments that could meaningfully expand capacity at this campus. And in line with our investment thesis, we are modifying. Our original Phase 1 designed for Blackwell's gpus and planning a new phase 3 and phase 4.

We will focus our development efforts on the city of <unk>, where we have 96 megawatts robust fiber connectivity are strong and developed local labor force and ample support from the local energy utility and municipality.

Ben Gagnon: It's not possible, I think, to identify what would be the key bottleneck or the key risk. I think with the team that we have in place, the strategic partners that we have in place, and the kind of groups that we're working with on the contracting side and on the owners rep side, we're in a really strong position to execute. Great. Any rough guidelines or framework you can give us for sort of like 2026 CapEx? When we're looking at 2026 CapEx, we've outlined some of the numbers for Washington. We're still working on clear path forward as we're revising for Vera Rubin. The real challenge with providing full CapEx figures for 2026 is that the Vera Rubin infrastructure is so new that even NVIDIA hasn't completed their validated reference designs to support that equipment and that infrastructure.

The entire campus will now be developed for nvidia's verar Ruben gpus and their greater energy density to accommodate our new expectations on future expanded power capacity.

We will be applying some of the standardized engineering and design plans completed for our Washington site to Sherbrooke in order to convert these facilities from bitcoin mining into next generation <unk> infrastructure adapted for bare <unk> Gpus.

This is expected to delay. The energization of phase 1, marginally from December 2026 into the first half of 2027 with no anticipated impacts to phase 2 timelines.

We believe this will enable the company to achieve significantly higher economics in line with our long-term thesis and strategy.

Similar to Washington, Quebec has a cool climate and some of the lowest cost energy in North America for data centers with strong unmet demand for GPU cloud our Montreal Sherbrooke also represents a potential opportunity to scale up a cloud business in 2027 with Dr. Two hundreds a strategy that we will evaluate.

Turning to slide 10.

Moving on to Sharon, where we have 110, megawatts of power secured by an Esa with First Energy and PGM under development.

<unk> as we worked through the engineering and development plans for sure Brook.

We are currently operating 30 megawatts of Bitcoin mining on site but it started development on an additional 80 megawatt substation, bringing the total available for HPC and AI use to 110 megawatts.

The remaining 74 megawatts of bitcoin mining in the province are earmarked for potential expansion in 2028, and we look forward to providing more detailed plans for Quebec and 2026.

We expect to have the full 110 megawatt, substation online by year end 2026.

Ben Gagnon: That's something that's adjusting in real time and still moving forward. We should expect to have a better indication of what CapEx looks like in 2026 in Q1. From our conversations that we're having with the various different engineering firms, suppliers, and partners of NVIDIA, NVIDIA is going to be producing the first Vera Rubin GPUs and taking them for their own purposes in probably Q2 of next year. Sometime in Q1, the reference design should be relatively final, and we should be clear in terms of what the CapEx implications are for 2027 and 2026. Got it. Okay. Hey, thank you. Thanks, Mike. Thank you. Our next question comes from the line of Nick Giles of BRiley. Your line is open, Nick. Thanks, operator. Good morning, guys. Appreciate all the detail here.

Turning to slide 12.

We recently closed on the purchase of the land for the site, effectively ending or lease and enabling us to move forward with our plan development of HPC and AI infrastructure.

Last but certainly not least we have our scrub grass campus in Pennsylvania.

30 minutes away from a Sharon, Pennsylvania campus on the western side of the state.

With the exception of the New Panther Creek Phase III and phase four which I spoke to a minute ago. This is the only power in our portfolio that is not 100% fully secured today. This is a very very exciting development opportunity for bit farms.

Similarly to Panther Creek we will be working to develop the campus for Bear. Ruben gpus targeting site, completion and revenue in the first half of 2027 for the full 110 megawatts of gross capacity.

Turning to slide 11.

We believe this is the only campus outside of Texas for public miners converting the HBC and AI that has over eight gigawatt potential capacity.

This is an incredibly attractive opportunity for hyperscalers. We're following what's called a regional campus strategy.

And while we have made great progress on developing the power story for this gig a campus. There is still quite a few steps to be taken in order to contractually secure the power, which falls into two buckets.

First.

We have completed three conceptual load studies with Firstenergy, starting with 250 megawatts 500, and then 750 megawatts. Thus.

This is something that was pioneered by Amazon, where smaller sites can be directly connected with direct fiber infrastructure in order to reduce the latency between sites below 2 milliseconds, enabling many sites to be connected together to function as 1 larger site.

Ben Gagnon: Ben, you mentioned the higher rack density of the Vera Rubin gen and that it could make the rack density suited for Blackwells obsolete. It wasn't that long ago that 100 kilowatts per rack was the high end of the rack density. How are you thinking about future proofing as this trend continues? Are there any contract structures that could protect you from the need to upgrade later down the road? Thanks, Nick. It's a great question. The evolution of hardware is happening at a rapid pace, right? The GB200s were 150. The GB300s were 190 kilowatts per rack. Now the Vera Rubins are going to be over 370. What that means is that your cooling needs to provide a lot more capacity in a very small footprint. It also means that your electrical distribution is very different.

As I mentioned, it's almost impossible to grow organically in the province.

Just moving over to what's called a detailed load study with Firstenergy, which would eventually be converted over to firm service and an Esa.

And in October we confirm the ability to convert over a Bitcoin mining infrastructure to HBC and AI with regulators and Utilities in the region.

Second.

We have made substantial progress on evaluating the potential to add additional generating capacity on site.

With that pathway. Clear? We are accelerating our plans in Quebec.

This can be accomplished by building a three to four mile pipeline from a campus to the second largest natural gas pipeline in the U S. The Tennessee natural gas pipeline, which we have confirmed to supply up to 550 megawatts of natural gas multiplying our generation capacity on site.

We will focus our development efforts on the city of Sherbrooke where we have 96 megawatts, robust, fiber connectivity, a strong and developed local, labor force in ample support from the local energy utility and municipality.

We're still in the early stages of evaluating how we would expand the generating capacity and will provide more details as we progress.

We will be applying some of the standardized engineering and design plans completed for our Washington site to Sherbrooke in order to convert these facilities from Bitcoin mining into next Generation. HPC and AI infrastructure adapted for Vera Rubin gpus,

Combined the two buckets could potentially provide one three gigawatts of gross capacity.

Ben Gagnon: Most of the networking is more or less the same, but on the cooling and the electrical, it's a really big challenge. One of the things that NVIDIA is looking at doing is increasing the voltage and even going to direct DC systems for the Vera Rubin technology. They're looking at switching over to 800-volt DC. That doesn't mean that you necessarily have to go upwards of 800 volts or switch over to DC, but it does mean that as the increasing energy density continues to accelerate, you need to be rethinking your energy infrastructure and how you're actually building out these facilities.

Additionally, there is very good fiber infrastructure in the area with over eight fiber infrastructure networks nearby and is in close proximity to Pittsburgh and Cleveland as well as the other data centers, which are starting to pop up throughout the state.

Similar to Washington, Quebec has a cool climate and some of the lowest-cost energy in North America for data centers, with strong unmet demand for GPU cloud. Montreal and Sherbrooke also represent a potential opportunity to scale up a cloud business in 2027 with VR 2000s.

The earliest time that we anticipate we could have additional power at this kind of scale implemented scrip graph is around 2028.

A strategy that we will evaluate as we work through the engineering and development plans for Sherbrooke.

So there is a longer lead time canvas for us we believe that with the forecast on power and demand for HP C&I infrastructure, the timing per gig a campus will play well with the cycle, our investment thesis and our other development plans.

The remaining 74, mango of Bitcoin. Mining in the province are earmarked for potential expansion in 2028 and we look forward to providing more detailed plans for Quebec in 2026.

Turning to slide 12.

Turning to slide 13.

Ben Gagnon: I think one of the ways that you try and do this is you try and build for the hardware at the time, then you try and lock that in with multi-year agreements, which help you recover your investment and capitalize those investments over a long period of time. When you're signing an agreement for 5, 10, 15 years, most of the time, those agreements don't anticipate material upgrades to the infrastructure or any upgrades to the infrastructure. You're locking yourself in. The customer is locking themselves in with the infrastructure that they have in hand. I think the best way to mitigate those risks is to spread out your facilities, make sure you have a pipeline that exists over multiple years, and make sure that you're building to the technology that's coming, not to the technology that already exists today.

Last but certainly not least, we have our Scrub Grass campus in Pennsylvania.

To sum up we believe that we are incredibly well positioned to execute against our investment thesis in 2026, and 2027 and maximize long term shareholder value.

This is about 30 minutes away from our Sharon Pennsylvania. Compass on the western side of the state.

One we have a very unique portfolio of energy assets that we aim to fully convert to HBC and AI infrastructure.

With the exception of the new Panther Creek phase 3 and phase 4, which I spoke to a minute ago. This is the only Power in our portfolio. That is not 100% fully secured today. This is a very, very exciting development opportunity for bit Farms

Two we have announced our plans to convert our Washington site to HPE C&I workloads and lead the industry in the development of next generation data centers for an Nvidia is Vera Rubin Gpus.

We believe this is the only campus outside of Texas for public miners converting to HPC and AI that has over a gigawatt of potential capacity.

Three we are actively evaluating a potential cloud monetization strategy for Washington site, which we believe would be a meaningful driver of cash flows and could eclipse and EBIT Queen mining cash flows we've ever generated.

And while we have made great progress, on developing the power story for this Giga campus. There are still quite a few steps to be taken in order to contractually, secure the power, which falls into 2 buckets.

First.

Four we are well capitalized to make our currently planned investments with the financial flexibility that exceeds $1 billion across cash Bitcoin and our Panther Creek project facility with Macquarie.

Ben Gagnon: Because if you're building for today's technology, by the time the facility's done, it's obsolete. Ben, I really appreciate that perspective. That takes me to my next question. You mentioned the pipeline. Obviously, you have a lot of growth in front of you, but how much time are you spending on M&A opportunities? Where does that ultimately rank in terms of capital allocation? Virtually none, Nick. Our focus as a management team is execution, execution, execution. We don't believe that there is a tremendous value that comes for our shareholders for looking at opportunities that are 2029, 2030, and these kind of long lead time items. We believe the value comes from executing against our existing portfolio. We continue to get inbounds in terms of new opportunities and growth opportunities, but none of them seem to compare at all with what we already have in hand.

We have completed 3, conceptual load studies with First Energy starting with 250 megawatts 500 and then 750 megawatts.

That's moving over to what's called a detailed load study with FirstEnergy, which would eventually be converted over to firm service in an ESA.

All of which are going to fund capex.

Second.

As we continue to produce strong free cash flows from our bitcoin mining operation that fund Opex G&A debt service and contribute to Capex with no further planned minor capex.

We've made substantial progress on evaluating the potential to add additional generating capacity on-site.

And lastly, we continue to execute on our U S pivot with the anticipated sale of our <unk> facility and our full Latam exit our transition to U S. GAAP for Q4, the establishment of our New York City office and working towards a U S. Domicile in 2026.

This could be accomplished by Building Up, 3 to 4 Mile pipeline from our campus to the second largest natural gas pipeline in the US, the Tennessee natural gas pipeline.

Which we have confirmed, could Supply up to 550 megawatts of natural gas.

Multiplying our generation capacity on site.

We believe this would give us significantly greater index inclusion and meaningfully improve the institutional composition of our cap table.

We're still in the early stages of evaluating how we would expand the generating capacity, and we'll provide more details as we progress.

I'd now have the pleasure to hand, the call over to our new CFO Jonathan environment.

Combine, the 2 buckets could potentially provide 1.3 gigawatts of gross capacity.

Turning to slide 14, Jonathan over to you.

Ben Gagnon: I think the best opportunity for us is to continue to execute against our existing pipeline. There will be a time in the future where we're going to want to continue to expand that pipeline, but that's probably an easy year or year and a half out from today. Got it. That's good to hear. Maybe one more, if I could, just for Jonathan. Sorry if I missed any commentary around this earlier, but how are you ultimately thinking about the Bitcoin treasury? Would you look to liquidate these holdings around the time that mining operations wind down, or would those be separate timelines? To be clear, first, it's nice to meet you. We are definitely not operating as a Bitcoin treasury company, and we don't want to be one.

Thank you Dan for the warm introduction I'm excited to join that farms. This pivotal moment in the company's transformation.

Additionally, there's very good fiber infrastructure in the area with over 8 fiber infrastructure now. Works nearby and is in close, proximity to Pittsburgh and Cleveland as well as the other data centers, which are starting to pop up throughout the state

Principal objectives as the new CFO are centered around capital allocation capital sourcing the capital structure.

The earliest time that we anticipate, we could have additional power at this kind of scale implemented. A script grass is around 2028.

I am working hand in hand, with the operations and development teams on the ground to ensure we implement financing plans that are appropriate for the company and its assets efficient and support long term shareholder value creation and we are also allocating capital to its best possible risk adjusted returns with an extensive background in energy.

Though this is a longer lead time campus for us we believe that with the forecast on Power and demand for HBC and I infrastructure the timing for a giga campus will play in well with the cycle, our investment thesis and our other development plans.

Turning to slide 13.

Infrastructure strategy in financing I believe there is an extraordinary opportunity to use our strong balance sheet unique assets and the talent of our people to create value in our high growth <unk> space.

To sum up, we believe that we are incredibly well, positioned to execute against our investment thesis in 2026 and 2027 and maximize long-term shareholder value.

Ben Gagnon: What we're doing right now through programs like Bitcoin 2.1 is offset Bitcoin production costs and achieve higher value per Bitcoin sold in a low-risk, low-cost funding mechanism for the energy infrastructure investments that define Bitfarms going forward. The program primarily sells short and long-dated out-of-the-money calls on the Bitcoin and the treasury, as well as for Bitcoin production. Our efforts are focused around maximizing yields and minimizing costs. We expect a Bitcoin treasury to wind down into strength as we allocate it to CapEx. Understood. Guys, thanks again for all the detail, and continued best of luck. Thanks, Nick. Thank you. Our next question comes from the line of Martin Toner of ATV Capital Markets. Please go ahead, Martin. Thanks for taking my question, and congrats on all this progress, guys. My question is around the GPUs.

Look forward to working closely with the team to deliver on our strategy and capture the exceptional long term shareholder value that would accompany our successful execution.

We have a very unique portfolio of energy assets that we aim to fully convert to HPC and AI infrastructure.

Turning to slide 15.

Hey, good farms has the strongest balance sheet and most available capital in the company's history in Q3, we were able to execute across several initiatives.

2, we have announced our plans to convert our Washington site to HPC and Ai workloads and lead the industry in the development of Next Generation, data centers for nvidia's Vera, Rubin gpus,

First and foremost we recently completed a very successful convertible note offering where we were able to upsize the offering to $588 million, while improving on pricing preserving upside and minimizing potential equity dilution through day, 125% capped call.

Any Bitcoin mining cash flows we have ever generated.

Bitforms chose to issue convertible notes because they allow us to access capital at lower coupons than straight debt and with less dilution from straight equity.

We are well-capitalized to make our currently planned investments with the financial flexibility that exceeds $1 billion across cash, Bitcoin, and our Panther Creek project facility with McCrory.

All of which are going to fund capex.

The cash settled capped calls repurchase allow us to offset the economic dilution up until $11 88 per share representing a significant premium to the share price today.

as we continue to produce, strong free cash flows from our Bitcoin mining operations that fund Opex GNA Debt Service and

contribute to capex with no further plan minor capex.

It is also important to highlight that investor commitment to bid farms strong 100% of institutional investors that management met with during the marketing process participated in the transaction and invested their capital and did firms. We're thrilled with the outcome of the space and it will allow us to advance our pipeline and tangible ways.

Ben Gagnon: What's your confidence in being able to acquire them on a timely basis? Would you go through a distributor that comes with the financing, or who might finance them? Thanks, Martin. Yeah, happy to speak to that. We've had quite a few conversations with leading GPU manufacturers. As you probably know, NVIDIA produces GPUs themselves, but they also sell chips to a lot of OEM manufacturers. When you speak with those manufacturers, they often have finance programs in place, and those finance programs can be pretty attractive, especially if you have the right infrastructure to ensure the quality and the lifespan of those GPUs. Going with an OEM manufacturer has a lot of benefits. They'll provide a full turnkey solution with regards to the servers themselves, and they can often come with financing.

And lastly, we continue to execute on our us pivot with the anticipated sale of our Paso team facility, and our full Lab. Mxit our transition to us. Gaap for Q4 the establishment of our, New York City office and working towards a Us re-domicile in 2026.

Second we converted our previously announced $300 million debt facility with Macquarie.

We believe this would give us significantly greater index inclusion and meaningfully improve the institutional composition of our cap table.

I now have the pleasure to hand the call over to our new CFO, Jonathan mrr.

A project specific financing facilities dedicated to the development of our path to create data center moving.

Turning to site for team, Jonathan over to you.

Moving to debt facility from a corporate level to the asset level materially enhances financial flexibility for the entire company in October we drew an additional $50 million from the facility in order to accelerate development of the site for a total of $100 million drawn to date.

Thank you, Ben, for the warm introduction. I'm excited to join. Bit farms at this pivotal moment in the company's transformation. My principal objectives as the new CFO are centered around Capital allocation Capital sourcing and capital structure.

Finally, we maintained steady and efficient mining operations throughout the quarter.

Cheating approximately $8 million in monthly free cash flow. After G&A, we expect to use this cash flow to support our HBC AI development projects.

Looking ahead, we anticipate continuing to use a mix of both corporate level and project level debt and equity financing as we advance our project milestones.

Ben Gagnon: With our timeline for end of next year on Washington, we're highly confident in sourcing our GPUs, and we believe that there's a lot of financing options out there that we are evaluating and could really juice up those return profiles. That's great. Thanks. Is there a good exahash number to use for Q4? Our exahash should stay relatively consistent in Q4 when you're looking at our continuing operations. It's not possible right now to really forecast the impact or when the impact from the pass-up pay sale is going to happen. The site continues to run today. It continues to hash. It continues to generate free cash flow. It's just not classified there under normal revenue. According to IFRS standards, we have to hold that under discontinuing operations.

On an ongoing basis, we will evaluate a wide range of opportunities and choose those that we believe support both a strong stable balance sheet and realize the full potential shareholder value creation that would accompany the successful execution of our plans and fund milestone objectives.

I'm working hand in hand with the operations and development teams on the ground to ensure we Implement financing plans that are appropriate for the company and its assets efficient and support long-term, shareholder value creation and that we are also allocating Capital to its best possible risk. Adjusted returns with an extensive background and energy infrastructure strategy and financing. I believe there's an extraordinary opportunity to use our strong balance sheet unique assets, and the talents of our people to create value in the high growth. HPC AI space.

I look forward to working closely with the team to deliver on our strategy and capture the exceptional long-term shareholder value. That would accompany our successful execution.

Turning to slide 16, let's focus now on our third quarter financial performance in Q3, we achieved total revenue of $84 million from continuing and discontinued operations with the intention to sell the Paso pay site in order to complete our Latin American exit all revenue from that asset is classified as discontinuing ops.

Turning to slide 15 today, Bitfarms has the strongest balance sheet and most available capital in the company's history in Q3. We were able to execute across several initiatives.

<unk>.

In continuing operations, we earned 540, bitcoin and achieved revenue of $69 million, representing a year over year increase of 156% and revenue.

First and foremost, we recently completed a very successful convertible, note offering where we were able to upsize the offering to 588 million while improving on pricing preserving upside and minimizing potential Equity dilution 38125 percent kept call.

Bitforms chose to issue convertible notes because they allow us to access capital and lower coupon than straight debt, and with less Solutions than straight equity.

For continuing operations, our gross profit was $21 million, representing a gross margin of 35% on an average direct cost of $48200 per bitcoin mind.

Ben Gagnon: I think if you just look at the hash rate associated with the rest of our portfolio, that will stay relatively constant. Well, it will stay constant throughout Q4, and then we'll make adjustments to it throughout 2026 as we execute on the HPC and AI development. Fantastic. Can you give us a sense for initial conversations with customers of the GPU as a service product reaction and confidence in being able to contract them on a timely basis? Conversations on the GPU front are really new for us because we've only started evaluating this in the last month or two as we've seen the market dynamic really take fold. I think the inbound demands that we've had across Washington, and specifically Panther Creek, is a lot.

During the third quarter, we introduced a new program for digital asset management declined $2, one which is designed to offset bitcoin production costs and achieve higher value per bitcoin sold as a low cost and low risk funding mechanism for the energy infrastructure investments that define the farms.

The cash settled cap calls. We purchase allow us to offset economic dilution up until 11 dollars and 88 cents per share. Representing a significant premium to the share price today. It is also important to highlight that investor commitment to bit Farms is strong. 100% of institutional investors that management met with during the marketing process participated in the transaction and invested their capital in bit Farms. We're thrilled with the outcome of this phase and it will allow us to advance our pipeline in tangible ways.

Going forward.

It is important to highlight that we are not a bitcoin treasury company. The goal of this program is not to accumulate bitcoin, but rather to offset the production costs of bitcoin and by doing so contribute to cost effectively funding our HBC AI initiatives.

Second, we converted our previously announced, $300 million debt facility with McQuarrie to a Project Specific financing facility dedicated to the development of our Panther Creek Data Center.

This is a multi strategy programs that primarily sells both short and long data out of the money covered calls on the bitcoin and treasury as well as for the corn production.

Ben Gagnon: When we're looking at what's the best way to service those customers, what's the best way to lock in long-term value under those agreements, there's a variety of different customers who are coming to us, and some of them want the GPUs included in there, and there's an associated premium that could be potentially extracted from that. It's a little too early to indicate exactly what we would expect with economics, but we do believe the economics from our conversations, from the internal modeling that we've done, and from the transactions that a lot of the companies in the space have announced in the last couple of months is very compelling, especially when we can execute it at a smaller site like Washington, which we can consider fully funded today. That's very helpful. Thanks very much. Thanks for taking my questions that day. Thanks, Martin. Thank you.

Moving the debt facility from a corporate level to the asset level materially enhances financial flexibility for the entire company. In October, we drew an additional $50 million from the facility in order to accelerate the development of the site, for a total of $100 million drawn to date.

During Q3, we incurred an all in cost per bitcoin of $82400 from continuing operations when considering our net gain of $13 3 million from derivatives against our all in production cost it would bring the effective all in costs down to $55200.

Finally we maintain steady and Mining operations throughout the quarter achieving approximately 8 million dollars and monthly free cash flow after GNA, we expect to use this cash flow to support our HPC AI development projects.

Cash G&A for Q3 was $14 million compared to $20 million in Q3 2020 for.

Looking ahead. We anticipate continuing to use a mix of both corporate level and project level debt and Equity financing. As we advance our project milestones

The improvement was largely driven by lower professional services costs.

Operating loss from continuing operations was $29 million for the quarter, including impairment charge of $9 million of non financial assets. As a result net loss from continuing operations for Q3 was $46 million or <unk> <unk> per share.

On an ongoing basis, we will evaluate a wide range of opportunities and choose those that we believe support both a strong, stable balance sheet and realize the full potential for shareholder value creation that would accompany the successful execution of our plans and fund milestone objectives.

Ben Gagnon: Our next question and comments from the line of Brian Dobson of Clear Street. Please go ahead, Brian. Yes, thanks very much. I guess more broadly speaking about Bitcoin mining, as more and more miners transition megawatts to HPC, how do you see the global hash rate evolving over the next few years? Interesting question, Brian. Personally, I think that hash rate is going to continue to evolve at the same rate that it has been evolving. If Bitcoin price is not moving up meaningfully, that would be a major headwind to further growth. I think what you'll see more likely is that Bitcoin miners are continuing to rotate out to lower and lower cost jurisdictions.

For the third quarter, our 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, and up from $9 million or 15% of revenue in Q2 2025.

Turning to slide 16. Let's focus now on our third quarter financial performance in Q3 we achieved a total revenue of 84 million from continuing and discontinued operations. With the intention to sell the Paso pay site in order to complete our Latin American exit, all revenue from that asset is classified as discontinuing operations.

Turning to slide 17.

Before we begin Q&A I'd like to reiterate our strong financial position and review our expected capital investment plans for the next 12 months.

156 % in Revenue.

We are extremely well capitalized to fund our HBC AI growth initiatives.

We have a war chest of over $1 billion.

Comprised of roughly $820 million in cash and recorded in the remaining $200 million available to draw from our Macquarie facility with.

For our continuing operations, our gross mining profit was 21. Million representing a gross mining margin of 35% and an average direct cost of 48,200 per Bitcoin. Mined

Ben Gagnon: I think one of the big dynamics that is taking place is that the public miners represented almost 1/3 of the entire network, and they all seem very keen on moving over to the higher economics associated with HPC and AI. That removes a lot of the available and current existing infrastructure for Bitcoin mining. There could be some potential headwinds in exahash growth for the network. I think what you'll see is it's just going to rotate off to different jurisdictions. We've seen huge growth in the Middle East, in Africa. I think Russia is a very large booming market for Bitcoin mining right now. I think the best opportunity for most miners in the United States really is this transition to HPC and AI.

With these funds, we expect to be able to fully finance the buildout of our Washington site and the initial phases of construction at our share in Sherbrooke and Panther Creek sites.

As we advance our development the actual investment in our projects will be dependent on a number of factors. We are currently focused on executing on the initial phases of our projects begin construction and securing long lead time items to ensure our project timelines, we will continuously evaluate a wide range of financing alternatives.

During the third quarter, we introduced a new program for digital asset management, Bitcoin 2.1, which is designed to offset Bitcoin production costs and achieve a higher value per Bitcoin. This program is sold as a low-cost and low-risk funding mechanism for the energy infrastructure investments that define big farms going forward.

The corporate and project level maximizing shareholder value with accretive financing will determine our choices as well as the need for a healthy balance sheet.

Closing ill underscore that did farms is in the strongest financial position in the company's history, and we have a clear vision of how we are going to best utilize this capital to advance our HPE AI build outs in North America. The entire bid farms team is incredibly enthusiastic and engaged about the opportunities ahead.

It is important to highlight that we are not a Bitcoin treasury company. The goal of this program is not to accumulate Bitcoin but rather to offset the production cost of bitcoin and by doing so contribute to cost-effectively funding our HPC AI initiatives. This is a multi-strategy program that primarily sells those short and long dated out of the money covered calls on the Bitcoin and treasury, as well as for Bitcoin production.

Ben Gagnon: The economics are really going to drive that forward because the US is the best market to invest in for HPC and AI, whereas Bitcoin mining is largely location agnostic. It's happy to go to cheaper locations, higher-risk locations, more remote locations than HPC and AI is. Yeah, excellent. Thanks. Just a quick follow-up. As you're reviewing your portfolio, do you see an opportunity to engage in this type of megawatt redeployment in a broader sense? When we're looking at whether or not we could redeploy our Bitcoin mining asset somewhere else, I think the opportunities are really few. I don't think that's a great use of management's resources or time. I think the best opportunity is to basically bring forward what should be estimated free cash flow for mining operations today into cash and reinvest those into HPC and AI. Great.

With that I'll now turn the call over to the operator for Q&A.

during Q3 we incurred an all-in cost per Bitcoin of 82,400 from continuing operations, when considering our net gain of 13.3 million from derivatives against our all-in production costs, it would bring the effect of all in costs down to 55,200,

Got it.

To ask a question.

Good morning.

Cast DNA for Q3 was 14 million compared to 20 million in Q3 2024.

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The Improvement was largely driven by lower Professional Services costs.

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Our first question.

Operating loss from continuing operations was 29 million for the quarter including impairment charge of $9 million of non-financial assets.

Comes from the line of Mike colonies of H C. Wainwright. Please go ahead Mike.

As a result net loss from continuing operations for Q3 was 46 million or 8 cents per share.

Hi, Good morning, guys. Appreciate all the color on Hp's strategy. This morning first for me.

But you mentioned that infrastructure for the Vera Rubin Gpus should command a premium to the Blackwell infrastructure.

We'll share more on how you guys are thinking about economics, there and the Capex differences.

For the third quarter, our adjusted Ava from continuing operations was 20 million or 28% of revenue, from 2 million, or 8% of Revenue year-over-year in Q3 2024 and up from 9 million or 15% of Revenue in Q2 2025.

According to slide 17.

Ben Gagnon: Thanks, Ben. Thank you. Our next question comes from the line of Michael Donovan of Compass Point. Please go ahead, Michael. Hi, Ben, Jonathan. Ben, you mentioned dollar per kilowatt trends. Can you quantify premium on dollar per kilowatt that you're seeing for power secured in Pennsylvania or Washington versus Texas? Yeah, it's a good question. There are a few variables that go into dollar per kilowatt on these leases. One is obviously timeline, one is location, another one is risk factors that go into the development timeline. It's not really possible to pinpoint an exact price per location because there are multiple factors which come into play when you're looking at what the total lease rates can accumulate to.

Thanks, Mike Yeah happy to speak to that a little bit there Scott two driving forces there with our expectations on Vera Rubin and economics. The first is that.

Before we begin Q&A, I'd like to reiterate our strong financial position and review our expected capital investment plans for the next 12 months.

As the dynamic continues to play out where the infrastructure is going to be an increasingly greater and greater shortage. There is.

We are extremely well capitalized to fund our HPC AI growth initiatives.

Is going to be a driver there that will drive the economics and the second part of this is that the economics around.

We have a war test of over a billion dollars comprised of roughly 820 million in cash and Bitcoin and the remaining hundred million dollars available to draw from our query facility.

Supply and demand imbalance are really specific to GPU models. Since you look at each 100 <unk> hundred the GBS the two hundreds and three hundreds and then what's going to be the next series of VR.

With these funds. We expect to be able to fully Finance the build out of our Washington site and the initial phases of construction at our Sharon Sherbrooke and Panther Creek sites.

There is a lot more infrastructure available to support those older Gpus, which have less specific requirements.

And when you look at what's going to happen with the VR series. The energy density is going up from 190 kilowatts per rack with the GBP $300 to upwards of 370 kilowatts per rack with the VR two hundreds and so a lot of the infrastructure. That's being built right now is not going to be compatible with the next generation.

Ben Gagnon: I think if you look around at the transactions that are here and you look around at kind of what Bitfarms could secure today at Pennsylvania before it's even really broken ground at our Panther Creek site, which we plan to do next month, we could probably lock in $140 to $150 per kilowatt per month. I think when you look at that rate, that rate takes into consideration the location. It also takes into consideration the shovel has not been put in the ground yet. What we don't want to do is we don't want to lock in a lot of discounts that would be associated with the build timeline and the uncertainties around the build timeline into a 10, 15-year agreement. What we'd rather do is we'd rather execute against our construction milestones, utilizing the substantial war chest that we have today.

And as companies allocate all this money into those Vera Rubin Gpus, theyre going to be very economically incentivize to deploy them and what I spoke to with regards to our investment thesis earlier today.

Is that.

As we advance our development, the actual investment in our projects will be dependent on a number of factors. We are currently focused on executing the initial phases of our projects, beginning construction and securing long lead time items to ensure our project timelines. We will continuously evaluate a wide range of financing alternatives. At both the corporate and project level, maximizing shareholder value with creative financing will determine our choices, as well as the need for a healthy balance sheet in closing. I'll underscore that Bitfarms is in the strongest financial position in the company's history, and we have a clear vision of how we are going to best utilize this capital to advance our HPC AI buildout in North America. The entire Bitfarms team is incredibly enthusiastic and engaged about the opportunities ahead.

As this dynamic continues to play out would you rather sit on your Gpus and not deploy them or would you rather pay a higher infrastructure expense in order to deploy them and start monetizing the asset and really the margins are so high on these gpus, especially when the GPU is the newest most cutting edge state of the <unk>.

With that, I'll now turn the call over to the operator for Q&A.

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The Vera Rubin will be in 2027 that the economic incentive to deploy those faster with very few options available should drive higher economics, we don't have a firm price point of exactly where that's been alive, but we think the trend is is abundantly clear.

Ben Gagnon: The closer we can bring that window down from signing a lease to actually generating revenue from a customer, the more that we should expect to get. It's hard to put an exact price, but I would think that if that window was shorter, we could probably get upwards of $180 per kilowatt per month if we didn't have the risks and uncertainty priced into the timeline that would bring it down to $140 to $150 per kilowatt today. That's internal estimates and modeling. There are a lot of factors that go into that. We also think that as you execute against 2026, and as the gap between data center supply and data center demand continues to exacerbate, those numbers could get even better. When we look at how the margins work out for these contracts, you're largely looking at pretty fixed opex.

Our first question.

Comes from the line of Mike colonies of HC Wayne Wright. Please go ahead. Mike,

At the economics next year and in 2027, Theyre, just going to continue to get better and better, especially as the short haul continues to get exacerbated.

Very helpful color there Ben.

Should we think about the wind down of your mining operations in the coming years, specifically as it relates to the pace and timing of cash rate coming offline as you start to convert.

Hi, good morning guys appreciate all the color and HPC strategy this morning. Um first for me, uh then you mentioned that infrastructure for the Vera Ruben GPU should come in a premium to the Blackwell infrastructure. Can you share more on how you guys are thinking about economics there in the capex differences?

Further progress in converting your data centers over to HBC.

Yeah happy to speak to that I mean, the first area is the Latam that we have been working on we are obviously shut down our Argentina facility earlier this year.

Thanks Mike. Yeah happy to speak to that a little bit. Um there's kind of 2 driving forces there with our expectations on on VAR Ruben and economics. Uh, the first is that

Ben Gagnon: The difference for the company between getting $140 per kilowatt hour, $140 per kilowatt per month versus $150 or $180 is not only a huge increase in terms of the top line revenue, but it's an even larger increase in terms of the profit margin, in terms of what your adjusted EBITDA is going to be. That all translates out into that multiple expansion that we're targeting with this transformation, right? If you're getting a significantly higher free cash flow out of that operation, that's what the multiple expansion is going to be based on. We really want to make sure that we're not pricing in those discounts. We're trying to maximize the dollar per kilowatt per month in the lease, and that's going to be the way that we achieve the highest multiple expansion for shareholders in the long term. That's helpful, Ben.

One of the big areas here as the Paso base facility, which is an asset that's being held for sale.

That represents around a little bit under 20% of our hatch rate and so that will impact the tax rate for the company rolling forward, but when we look at transactions like this just like how we looked at the economics around shutting down the Argentina facility, we expect to pull forward.

And the second part of this is that, you know, the economics around, um, you know, supply and demand imbalance are really specific to GPU models. So if you look at h100s h200 the GBS, the 200s and 300s and then what's going to be the the next series of VR? Um, there's a lot more infrastructure available to support those uh older gpus which have less specific requirements.

Significant amount of expected free cash flow from those operations today, so that we can reinvest them more immediately in the U S in North American <unk> infrastructure to greater effect. So while it should have an impact on the free cash flow from operations really the impact is very mitigated.

By the fact that we're taking one to two years worth of free cash flow from operations and bringing it forward for reinvestment now and then we also have the disc the derisking factor with regards to having less and less of bitcoin exposure.

Ben Gagnon: You talked about connecting data centers to be one campus. I was hoping you can unpack this a bit more. How can we think about distance between halls or pods versus theoretical loss and performance for compute? Yeah, there's a strategy that Amazon pioneered. It's called the regional campus strategy. They've effectively determined that somewhere around 300mi is the cost-effective range to build direct fiber infrastructure. The real thing is the latency that you could get between your sites. Obviously, when you're looking at these facilities, you're even concerned about the latency in rack and in between racks or inside the facility to go from one rack to another rack on the other side of the facility. That latency is becoming an increasingly bigger bottleneck as you're looking at performance on the high, high end of GPUs.

And when you look at what's going to happen with the VR series, the energy density is going up from 190 kilowatts per rack with the GB 3000 to upwards of 370 kilowatts per rack with the VR 2000's. And so a lot of the infrastructure that's being built right now is not going to be compatible with the Next Generation. And as companies allocate, all this money into those very Ruben gpus, they're going to be very economically incentivized to deploy them and what I spoke to with uh, regards to our investment thesis earlier today.

Or bitcoin mining exposure I should say.

So as we move forward through 2026.

The next site that would be coming offline would be coming offline as we develop the HP C&I infrastructure and they would get replaced.

Washington would probably happen sometime in the probably middle of the year.

And that would be about one extra hash and everything else, we kind of come off slowly.

Is that, you know, as this Dynamic continues to play out, you know, would you rather sit on your gpus and not deploy them? Or would you rather pay a higher infrastructure expense in order to deploy them? And start monetizing the asset and really you know the the margins are so high on these gpus especially when the GPU is the newest most Cutting Edge state-of-the-art gpus is the Vera Rubin will be in 2027 that, you know, the economic incentive to deploy those faster with very few options available should drive.

As we as we convert over the facilities <unk>. So it would be a bit of an orderly transformation and we'll continue to update the market as we as we announced those plans.

Great. Thank you for taking my questions.

Thanks, Mike.

Higher economics. We don't have a a firm price point of exactly where that's going to lie. But we think the trend is is abundantly clear, um, that the economics next year and in 2027, they're just going to continue to get better and better especially as a shortfall continues to get exacerbated.

Ben Gagnon: What we've seen is that most of our facilities in Montreal, where we'd be looking at this regional campus strategy, are much closer than 300 miles. They're all within 90 minutes of Montreal. Many of them are a 15 or 20-minute drive apart from each other. It would be possible to reduce the latency below 2 milliseconds with direct fiber. It would be pretty cost-effective to do so, and you'd get a lot of benefits from doing that in terms of the scalability, given it's just so difficult to scale up new megawatts in the province. Appreciate it, Ben. Thank you. I would now like to turn the conference back to Ben Gagnon for closing remarks. Sir, thank you very much. I would like to thank everyone for attending our earnings call this morning. The management team is very excited.

Thank you.

Next question comes from the line of Brett Knoblauch of Cantor Fitzgerald. Please go ahead Brett.

Hi, guys. Thanks for taking my question. Thanks for a lot of the color on the different type throughout the call I guess when it comes to maybe your PPA sites and getting additional power I feel like that's kind of like the biggest catalyst maybe over the near term.

Very helpful color there been and I should think about the wind down of your mining operations in the coming years. Specifically, as it relates to the PACE and timing of hash rate coming offline as you start to convert, uh and make further progress in converting your data centers over to HBC. Uh, AI

Yeah, happy to speak to that.

I believe stronghold was kind of before you guys went out and acquired it which is probably.

I mean, the first area is is

Over a year ago now.

If you have any idea on that on an update of when you expect to maybe expand the power capacity at Blue Creek, and scrubbed breadth of data.

Couple of month thing within six months thing how should we think about the timing there.

Thanks, Brett.

It's a pretty exciting development there at Panther Creek, because just over the last couple of weeks. We have received positive indications on the conversion of the ISI to an Esa as.

Ben Gagnon: Our long-term investment strategy, we believe, is fully aligned with long-term investors. We are really, really excited about the future of this company and what we're building at Bitfarms. We appreciate your continued support. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

As well as the expansion with an additional load steady.

It's a little too early to say exactly when that would come.

Onto site of what we're planning here as an additional phase III and phase four which would come likely after phase II, but it's possible that the conversion of the ISI to an Esa could happen very quickly because all of the infrastructure is in place. There is no investments that need to be made it's really just.

The the latan that we've been working on, um, you know, we all obviously shut down our Argentina facility earlier this year. Um, and I think 1 of the, the big areas here, is the Paso Pace facility, which is an asset that's being held for sale. Um, you know, that represents around, uh, a little bit under 20% of our hash rate. And so that will impact the hash rate for the company rolling forward. But when we look at transactions like this, just like how we looked at the the economics around shutting down the Argentina facility. You know, we expect to pull forward a, a significant amount of expected free cash flow from those operations today so that we can reinvest them more, uh, immediately in the US in North American, you know, HPC and AI infrastructure to Greater effect. So, while it should have an impact on the free capital,

Subject to.

The regulatory approval.

And signing some paperwork for all of that to be converted over so I would think within the the phase III, it's not really clear exactly when that's going to take place, but it could happen quickly it could take.

Several months.

When it comes to our phase four that's likely going to be a 2028 deal.

Awesome and then on the GPU cloud as a service.

The Capex figure that you noted and all I can say that converting that quint mining to host Gpus that was not included in the GP was correct.

Cash flow from operations. Really, the impact is very mitigated by the fact that, you know, we're taking 1 to 2 years worth of free cash flow from operations and bringing it forward for reinvestment now. And then we also have the the disc uh, the de-risking factor with regards to having less and less Bitcoin exposure, um or Bitcoin mining exposure, I should say. Um so you know, as we move forward through 2026, um, you know, the the next site that would be coming offline, would be coming offline as we develop the HPC and I infrastructure and they would get replaced um Washington would probably happen sometime in in the probably middle of the year um and that would be about 1X a hash and everything else will kind of come off slowly. Um,

Correct, that's not including Gpus and some of the construction costs associated with converting over to the facility.

you know as we as we convert over the facilities to HPC and AI so it would be a bit of an orderly transformation and we'll continue to update the market as we um as we announce those plans,

So there will be additional expenses at the Washington site. We've had several conversations now with some of the leading GPU manufacturers and we think that there's very attractive financing options on the gpus as well.

Great. Thank you for taking my questions.

Thanks Mike.

That would really keep the capex.

Thank you. Our next question comes from the line of Brett. Nova of Cantor, Fitzgerald. Please go ahead. Brett.

Requirement down to basically the infrastructure expense and we'd be able to fund potentially up to 100% of the compute.

Through the CPU manufacturers, which could.

Hi guys, thanks for taking my questions. Thanks for a lot of the color on the different sites throughout the call. I guess when it comes to maybe your PA sites and getting additional power, I feel like that’s kind of like the biggest catalyst, you know, maybe over the near term.

Could be done on what we believe to be really attractive terms and we also think that it would provide a significantly.

Greater return profile on doing GPU as a service or cloud.

And from a capital allocation standpoint.

What is your guys' preference obviously the.

Sites appear to be leaning more towards co location in Washington say cloud.

I believe stronghold was kind of in queue before you guys went out and acquired it which, you know, is probably, you know, over a year ago now. Like, do you have any idea on on an update of when you expect to maybe expand it? The power capacity at those pamper Creek and and scrub grass is that a, you know, a couple of months thing, you know, within 6 months thing, how should we we think that the timing there?

Do you guys expect to kind of grow both businesses at the same time is there a preference for one to kind of get online sooner than the other.

The expectation is that the Washington site will be the first site that's fully online.

Sharon site will probably be the second site, that's fully online because scrub grass or sorry Panther Creek is split out into those two phases in 2027 with additional phases, three and phase four which still needing to be confirmed.

Our priority is managing the critical pass in all of the project management timelines that we have across our various facilities.

But when we're looking at capital.

And and how we've allocated across its managing the critical path and it's also making sure that.

When it comes to looking at the opportunities around cloud we're doing so in a way that makes sense and is affordable and one of the benefits of doing it at Washington is a relatively smaller scale does make it very cost effective to do it it's something that we could consider fully funded today, it's something that we could get financing for it that scale, whereas when youre looking at.

Over the last couple of weeks. We've, we've received positive indications on the conversion of the ISA to an Esa uh, as well as the expansion uh with an additional load study. Um it's a little too early to say exactly when that would come uh you know, on to cite what we're planning here is an additional phase 3 and phase 4, which would come likely after Phase 2. Um, but it's possible that the conversion of the ISA to an Esa Could Happen very quickly, because all of the infrastructure is in place, there's no Investments that need to be made. It's really just subject to, uh, the regulatory approval, um, and signing some paperwork for all of that to be converted over. So I would think within the, the phase 3. It's, it's not really clear. Uh, exactly when that's going to take place, but it could happen quickly, it could take, you know, uh, several months. Um, when it comes to a phase 4, that's likely going to be a 2028 deal.

Really large campuses that we have in Pennsylvania, a co location strategy, it's going to be a lot easier to finance.

Awesome. Thank you guys really efficient.

Okay.

Thank you thanks Brett.

Awesome. And then on the uh, GPU Cloud. As a service, um, the capex figure that you you noted on, I guess, maybe converting that to the coin mining to host gpus that was not including the the gpus correct.

Our next question.

Comes from the line of Steven <unk> of Jones trading. Please go ahead Steven.

On the 128 million critical supply agreement in Washington can you clarify the counterparty to that agreement is that T. Five or is that another firm and then.

Additionally, just a follow up to the last one on the GPU cloud model potentially at Washington, Sherbrooke can you maybe elaborate.

What factors make GPU as a service compelling relative to.

Correct, that's not including gpus and and some of the construction costs associated with converting over to the facility. Um, so there will be additional expenses at the Washington site. We've had several conversations Now with, uh, some of the leading GPU manufacturers and we think that there's very attractive financing options on the gpus as well. Um, that would really keep the capex uh requirement down to basically the infrastructure expense and we'd be able to fund you know potentially up to 100% of the compute um through these GPU manufacturers which

Standard co location in these markets.

How are you evaluating both potential GP.

GPU risk in your let's say a return on invested capital or IRR hurdle.

could be done on what we believe to be really attractive terms. And we also think that it would provide uh, a significantly greater return profile on on doing GPU as a service or cloud.

For the cloud opportunity. Thank you.

Yeah. Thanks, Steven when it comes to the supply agreement that we have for the Washington site, it's not with <unk> five it is with a large publicly traded.

And from a a capital allocation, I guess standpoint. What is your guys preference? Obviously the

American National Company, who serves.

And supply datacenter equipment and data Center services.

CA sites appear to be lean more towards co-location in Washington site Cloud. Um, if you guys expect to kind of grow both businesses at the same time, is there a preference for 1 to kind of get online sooner than the other?

The facility is really an attractive facility for both co location in both cloud, but when you look at.

The opportunities that we have here to go fully up the stack and what that might mean for the company. Both in terms of a free cash flow perspective, as well as our ability to to really demonstrate ourselves not only as a developer but as an operator I think there is a lot of tangible benefits there that will pay dividends in the long run.

The expectation is that the Washington site will be the first sight that's fully online. Um, the share in sight, will probably be the second site that's fully online. Because scrub grass, or sorry Panther Creek is split out into those 2 phases in 2027 with additional phases 3 and and and phase 4 which which still needing to be confirmed. Um you know our priority is managing the critical paths and all the project management.

B the conversion of the site according to our modeling and similar transactions that have happened in the market over the last couple of months indicate that this one site could be worth.

Significantly more than the entire bitcoin mining business that the company has been operating for multiple years, and so that would provide us with a really strong free cash flow foundation as the bitcoin mining business winds down it will also enable us to better understand and better learn these facilities as we're looking to provide service and work with.

Hyperscale and enterprise customers and neo cloud customers on really large campuses and so the benefit of doing it at a smaller facility is that we should be able to extract a lot of knowledge and value that we can apply to a lot of our other facilities as well.

Timeline that we have across our various facilities. Uh but when we're looking at Capital and and how we'd allocated across, its its managing the critical path and it's also making sure that, you know, when it comes to looking at the opportunities around Cloud, we're doing so in a way that that makes sense and is Affordable and 1 of the benefits of doing it at Washington is the relatively scholar scale does make it very cost effective to do it. Um, it's something that, you know, we could consider fully funded today, it's something that we could get financing for at that scale. Whereas when you're looking at the really large campuses that we have in Pennsylvania, a collocation strategy uh is going to be a lot easier to finance.

Awesome. Thank you guys, really appreciate it.

Thank you. Thanks Brett.

Our next question.

Alright, thank you.

Comes from the line of Stephen Jaga of Jones trading. Please go ahead Stephen

Thanks Steven.

Thank you. Our next question comes from the line of Mike Grondahl of Northland. Please go ahead Mike.

A critical it Supply agreement for Washington, can you? Clarify, you know, the

Hey, Ben.

Just curious.

What would you describe as the two biggest challenges to maybe meeting your timelines for for Washington, Sharon and Panther Creek.

Party to that agreement. Is that T5? Or is that another firm? And then additionally, uh, just a follow-up to the last 1 on on the GPU Cloud Model. Um, potentially, at Washington and Sherbrooke. Um, can you maybe elaborate on what factors make

What's going to be the the potential bottlenecks and how are you dealing with them.

Hey, Mike.

Potential bottlenecks in construction are a little hard to forecast and construction is something that is changing every single day on the ground I think that the key way that to mitigate potential risks in construction as having great partners with your owners wrap your general contractors, having a great team of project managers into.

GPU as a service compelling relative to, you know, standard collocation in these markets and sort of, how are you evaluating both potential, you know, GPU risk, and your let's say return on investment Capital irr hurdle, um, for the cloud opportunity. Thank you,

<unk>, who are making sure they're on track of everything every step of the way and they are trying to think forward.

Yeah. Thanks Stephen. Um, when it comes to the, the supply agreement that we have, for the Washington site. Um, it's not with T5, it is with it. A large publicly traded, um, American National company, who, who serves, uh, and Supply data center equipment and data center services.

On all the potential problems in managing that those critical path.

It is not possible I think to identify what would be the.

The key bottleneck or the risk but.

But I think what the team that we have in place the strategic partners that we have in place and the kind of groups that we're working with.

Contracting side and on the owner's Rep side, we're in a really strong position to execute.

Great and then.

Any rough guidelines or framework, you can give us for sort of like 2026 Capex.

So when we're looking at 2026 Capex.

Outlined some of the numbers for Washington.

We're still working on clear path forward as we're revising for bear Rubin, the real challenge with providing.

Full capex figures for 2026 is that the Vera Rubin infrastructure is so new that even Nvidia hasnt completed their validated reference designs to support that equipment and that infrastructure. So that's a that's something that's adjusting in real time and still moving forward.

Flow perspective as well as our ability to to Really demonstrate ourselves. Not only as a developer but as an operator, I think there's a lot of tangible benefits there that will pay dividends in the long run, um, you know, the, the conversion of the site according to our modeling and, and, you know, similar transactions that have happened in the market over the last couple of months indicate that this 1 site could be worth, you know, significantly more than the entire Bitcoin mining business, that that the company has been operating for for multiple years. And so that would provide us with a really strong free cash flow Foundation as the Bitcoin mining business winds down. It'll also enable us to better understand and better learn these facilities as we're looking to, you know, provide service and work with um, hyperscale and Enterprise customers and nio Cloud customers on really large campuses.

We should expect to have a better indication of what capex looks like in 2026 in Q1.

And so the benefit of doing it at this smaller facility is that, you know, we should be able to extract a lot of knowledge and value that we can apply to a lot of our other facilities as well.

From our.

All right. Thank you.

Conversations that we're having with the various different engineering firms and suppliers and partners of Nvidia and the video is going to be producing the first Vera Rubin Gpus and.

Thanks, Stephen.

Thank you. Our next question comes from the line of Mike Rhonda of Northland. Please go ahead, Mike.

Taking them for their own purposes, and probably Q2 of next year and so sometime in Q1. The reference designs should be relatively final and we should be clear in terms of what the capex implications are for 2027 and 2026.

Hey, been just curious.

What would you describe as the two biggest challenges to meeting your timelines for Washington, you know, Sharon and Panther Creek? Like...

Got it Okay, hey, thank you.

Thanks, Mike.

What's going to be the the potential? Bottlenecks and how are you dealing with them?

Thank you our next question.

Comes from the line of Nick Giles B Riley Your line is open mic.

Thanks, operator, good morning, guys I appreciate it I appreciate all the detail here.

Then you mentioned the entire residency of the fair Ruben Jen.

It could make the rack density suited for black was obsolete.

Isn't that long ago that 100 kilowatts per rack was the high end of the rack density. So how are you thinking about future proofing as this trend continues and we are.

Are there any contract structures that could protect you from the need to upgrade later down the road.

Hey Mike. Um, I mean the potential bottlenecks in construction are are a little hard to to forecast. I mean, construction is something that is changing every single day on the ground. I think that the key way that you mitigate, you know, potential risks in construction is having great partners with your owner's rep, your general contractors, having a great team of project managers internally who are making sure they're on track of everything, every step of the way. And they're trying to think forward, um, on all the potential problems in managing that those critical paths? Um, you know, it's not possible. I think to to identify, what would be

Thanks, Nick.

Question.

Evolution of hardware is happening at a rapid pace right the.

The GBP two hundreds were 150 the GBP three hundreds were 190 kilowatts per rack and now that <unk> are going to be over 370, and what that means is that you're cooling.

The key bottleneck, or the key risk, um, but I think with the team that we have in place the Strategic partners that we have in place, and the kind of of groups that we're working with bought the, um, the Contracting side and on the owner's website. We're in a really strong position to execute

Great. And then

To provide a lot more capacity in a very small footprint. It also means that your electrical distribution is very different you know most of the networking is more or less the same.

any rough guidelines or framework you can give us for sort of like 2026 capex.

But on the cooling and the electrical it's a really big challenge and one of the things that any videos looking at doing is increasing the voltage and even go into direct DC systems for for the Vera Rubin technologies. So theyre looking at switching over to 800 volt DC.

That doesn't mean that you necessarily have to go upwards.

800 volts worth switchover to DC, but it does mean that as the increasing energy density continues to accelerate you need to be rethinking your your energy infrastructure and how Youre actually building out. These facilities I think one of the ways that you try and do this as you try and build for the hardware at the time when you try and lock that in.

With multiyear agreements, which help you do.

Recovery of our investment and capitalize those investments over a long period of time. When you are signing an agreement for 510 15 years. Most of the time those agreements don't anticipate material upgrades to the infrastructure or any upgrades to the infrastructure and so you are locking yourself and the customers locked.

So when we're looking at 2026 capex, um you know we've outlined some of the numbers for for Washington. Um we're still working on clear pass forward as we're revising for Bear Ruben. Um the real challenge with providing uh full capex figures for 2026. Is that the Vera Rubin infrastructure is so new that even Nvidia hasn't completed their their validated reference designs to support that equipment and that infrastructure. Um, so that's a that's something that's that's adjusting in real time and still moving forward. Um, we should expect to have a better indication of of what capex looks like in 2026 in q1, um, from our uh conversations that we're having with the the various different engineering firms and suppliers and and partners of Nvidia and Nvidia is going to be producing the first VAR Ruben gpus and and taking them for their own purposes and probably Q2 of next year. And so, sometime in q1, the reference design should be relatively

Final and we should be clear in terms of what the capex implications are for 2027.

In themselves and with the infrastructure that they have in hand.

And so I think the best way to mitigate those risks is too spread out your your facilities to make sure you have a pipeline that exists over multiple years and make sure that you're building to the technology thats coming not to the technology that already exists today, because if youre building for today's technology by the time the facilities done it it's obsolete.

Thank you. Our next question comes from the line of Nick Giles B. Riley, your line is open Nick.

And I really appreciate that perspective.

That takes me to my next question you mentioned the pipeline. Obviously you have a lot of growth in front of you, but how much time are you spending on M&A opportunities.

Where does that ultimately rank in terms of capital allocation.

Virtually none Nick.

Separator. Good morning guys. Appreciate appreciate all the detail here. Um, Ben you mentioned the Tire Rack didn't see of the fear of Ruben Jen and you know that it could make the rack density suited for Blackwell's Obsolete and you know it wasn't that long ago that 100 kilowatts per rack was the high end of the rack density. So, how are you thinking about future proofing? As this trend continues? And you know, are there any contract uh structures that could protect you from the need to upgrade later down the road?

Our focus as a management team is execution execution execution.

We don't believe that there is a tremendous value that comes for our shareholders for looking at opportunities that are.

2029, 2030 in these kind of long lead time items, we believe the value comes from executing against our existing portfolio and we we continue to get inbounds in terms of new opportunities and growth opportunities, but none of them seem to compare at all with what we already have in hand, and so I think.

The best opportunity for us is to continue to execute.

Our existing pipeline there will be a time in the future, where we're going to want to continue to expand that pipeline.

But that's probably.

Easy year or year, and a half out from from today.

Got it.

Good to hear and maybe one more if I could just for Jonathan.

Sorry, if I missed any commentary around this earlier, but how are you ultimately thinking about the bitcoin Treasury would you look to liquidate these holdings around the time that mining operations wind down or would those be separate channels.

So.

Yeah.

To be quick first its nice to meet you.

We are definitely not operating as it.

<unk> treasurer of the company, we don't want to be one what we're doing right now.

Uh, needs to provide a lot more capacity in a very small footprint. Um, it also means that your electrical distribution is very different, you know, most of the networking is, is more or less the same, um, but on the cooling and the electrical, it's a really big Challenge. And 1 of the things that Nvidia is looking at doing is, is increasing the voltage and even going to direct BC systems for, for the Vera Rubin technology. So they're looking at switching over to 800 volt DC. Um, that doesn't mean that you necessarily have to go upwards of of 800 volts or switch over to DC. But it does mean that, you know, as the increasing energy density continues to accelerate you know you need to be rethinking your your energy infrastructure and and how you're actually building out these facilities. I think 1 of the the ways that you try and do this is you try and build for the hardware at the time and then you try and lock that in with multi-year agreements which which help you do, um, recover your investment, and capitalize those Investments, over a long period of time. You know, when you're signing,

Through programs like Bitcoin $2, one is offset bitcoin production costs and achieve higher value per bitcoins sold in a low risk.

Low cost funding mechanism for the energy infrastructure investments, but the fund.

But for them going forward.

<unk>.

The program.

I know, it's still short long David out of the money calls on the bitcoin and the treasury.

As well as for <unk> production. So our efforts are focused around.

An agreement for 5 10, 15 years, most of the time, those agreements don't anticipate, you know, material upgrades to to the infrastructure or any upgrades to the infrastructure. And so you're locking yourself in the customer's locking themselves in with the infrastructure that they have in hand. Um, and so I think the best way to mitigate those risks is to spread out your your facilities. Make sure you have a pipeline that exists over multiple years and make sure that you're building to the technology that's coming.

Tom.

Around maximizing yields and minimizing costs.

Not to the technology that already exists today. Because if you're building for today's technology, by the time the facility's done, it's obsolete.

We expect a bitcoin treasury to wind down into strength as we allocated to capex.

Understood.

Guys. Thanks again for all the detail best of luck.

Thanks, Nick.

That I really appreciate that perspective. Um, you know, that takes me to my next question, you mentioned the pipeline obviously, you have a lot of growth in front of you, but how much time are you spending on m&a opportunities? And we're just that ultimately rank in terms of capital allocation

Thank you. Our next question comes from the line of Martin Sellner.

The ATB capital markets. Please go ahead Martin.

Okay.

Thanks for taking my question and congrats on all this progress.

Yes.

My question is around the Gpus, what's your confidence like being able to acquire them on a timely basis.

And would you go through a distributor.

It comes with the financing or who might finance that.

Uh, virtually none Nick um you know our Focus as a management team is is execution execution, execution. Um we don't believe that there is a tremendous value that comes for for our shareholders, for looking at opportunities at our, you know, 2029 2030 in these kind of long lead, time items. We believe that value comes from executing against our existing portfolio. And we, you know, we continue to get inbounds in terms of New Opportunities and and growth opportunities. But none of them seemed to compare at all with what we already have in hand.

Thanks Martin.

Yes happy to speak to that we've had quite a few conversations with leading GPU manufacturers.

As you probably know new video producers Gpus themselves, but they also sell chips to a lot of OEM manufacturers.

When you speak with those manufacturers they often have finance programs in place and those finance programs are or it.

And so I think that the best opportunity for us is to continue to execute um against our existing pipeline, there will be a time in the future where we're going to want to continue to expand that pipeline. Um but that's probably, you know, an easy year or year and a half out from from today.

Can be pretty attractive, especially you have the right infrastructure to ensure the quality and the lifespan.

Of those Gpus, so going with a an OEM manufacturer has a lot of benefits there.

Got it. That's, that's good to hear. Maybe 1 more if I could just for Jonathan, uh, sorry if I missed any commentary around this earlier. But you know, how, how are you ultimately thinking about the Bitcoin treasury? Would you look to liquidate these Holdings around the time that mining operations wind down? Or, you know, would those be separate timelines?

We'll provide a full turnkey solution with regards to reverse themselves.

so,

And they can often come with financing with our timeline for end of next year on Washington.

We're highly confident in sourcing our Gpus and we believe that there is a lot of financing options out there that way.

We are evaluating and could really juiced up those return profiles.

That's great. Thanks is there a good number to use for Q4.

So we are definitely not operating as a Bitcoin treasury company and we don't want to be 1 what we're doing right now through programs like Bitcoin. 2.1 is offset Bitcoin production costs and Achieve higher value for Bitcoin, sold in a low-risk low-cost funding mechanism for the energy infrastructure Investments That Define become Bitcoin going forward. Um,

Our extra half should stay relatively consistent in Q4, when youre looking at our continuing operations it's not.

Possible right now to really forecast the impact or when the impact from the Paso pay sale is going to happen.

The program primarily sells short long dated out of the money calls on the Bitcoin and the treasury, um, as well as board Bitcoin production. So, our efforts are focused around

But the site continues to run today. It continues to hash it continues to generate free cash flow.

Just not classified there under under normal revenue.

Um, around maximizing yields and minimizing costs. It's been an expected, Bitcoin treasury to wind down and to strength as we allocated to capex.

According to <unk> standards, we have to hold that under discontinued operations, but I.

Understood um guys thanks again, for all the detail and continued best of luck.

I think if you just look at the hatch rate associated with our the rest of our portfolio that will stay relatively constant where it will stay constant throughout Q4.

And then we will make adjustments to it throughout 2026 as we execute on the HP C&I development.

Thank you. Our next question comes from the line of Martin toner of ATV Capital markets. Please go ahead. Martin

Fantastic can you give us a sense for initial conversations with customers of the GPU as a service product.

Reaction and confidence in vivo and being able to like contract on a more permanent basis.

So conversations on the GPU front are really new for us because we've only started evaluating this in the last month or two.

Thanks for taking my question and congrats on all this progress. Uh, guys, um, my question is around the gpus, um, what's your confidence in like being able to acquire them on a timely basis and um and would you go through a a distributor that that like comes with the financing or who might Finance?

As we've seen the market dynamic really take hold I think the inbound demand that we've had across Washington, and specifically Panther Creek.

Is.

Is a lot.

And when we're looking at what's the best way to service those customers, what's the best way to lock in long term value under those agreements.

There is a variety of different customers, who are coming to us.

And some of them want the Gpus included in there and there's associated premium that could be potentially extract it.

From that so.

Little too early to indicate exactly what we would expect economics, but we do believe the economics from our conversations in from the internal modeling that we've done and from the transactions that a lot of the.

Companies in the space have announced in the last couple of months as is very compelling.

Especially when we can execute it at a smaller site like Washington, which we can consider fully funded today.

Um you know, as you probably know, Nvidia produces gpus themselves but they also sell chips to a lot of OEM manufacturers. Um when you speak with those manufacturers, they often have Finance programs in place and those Finance programs are are, can be pretty attractive, especially you have the right infrastructure to ensure the quality and the lifespan, um, of those gpus. So going with a an oem manufacturer has a lot of benefits. Um, they'll provide a full TurnKey solution with regards to the servers themselves. Um and they can often come with financing with our timeline for end of next year. On Washington, uh we'll highly confident in sourcing our gpus and we believe that there's a lot of financing options out there that worry, um, are evaluating and it's a really juice up those return profiles.

That's very helpful. Thanks, very much thanks for taking my questions.

Martin.

Thank you.

That's great. Thanks. Uh, is there a good extra hash number to use for Q4?

Our next question comes from the line of Brian Dobson of Clear Street. Please go ahead Brian.

Yes, thanks very much.

More broadly speaking about.

Coin mining there is more and more miners transition megawatts H P. C. How do you see the global hash rate evolving over the next few years.

Interesting question Brian.

Personally I think that hash rate is going to continue to evolve at the same rate that it has many evolving but if bitcoin prices not moving up meaningfully that would be a major headwind to further growth I think what youll see more likely is that.

Um, or exit, the hash should stay relatively consistent in Q4 when you're looking at our continuing, um, operations, it's, it's not, um, possible right now, to really forecast, the impact, or win the impact from the Paso, pay sale. It's going to happen. Um, but you know, the site continues to run today, it continues to Hash it continues to generate free cash flow. Um, it's just not classified there under under normal Revenue. Um, according to IFRS standards, we have to hold that on

Between miners are continue to rotate out to lower and lower cost jurisdictions and I think one of the big dynamics that is taking place is that the public miners represented almost a third of the entire network.

Under discontinuing operations. But, um, I think if you just look at the hash rate associated with our, the rest of our portfolio, um, that will stay relatively constant. Well, it will stay constant throughout Q4, um, and then we'll make adjustments to it throughout 2026 as we execute on the HPC and AI development.

And they all seem very keen on moving over to the higher economics associated with HBC NII, so that removes a lot of the available and current existing.

Fantastic. Can you give us, um, a sense for initial conversations with customers of the GPU as a service product, um, reaction and and confidence and be able in being able to like contract them on a time in the basis,

Infrastructure for bitcoin mining, so there could be some potential headwinds and <unk> growth for the network.

But I think what Youll see is it's just going to rotate off to different jurisdictions, we've seen huge growths in the middle East and Africa, I think Russia is a very large booming market for bitcoin.

So conversations on the GPU front are are really new for us because we've only started evaluating this in the last month or 2. Um, as we've seen the market Dynamic really take fold, I think the the inbound demands that we've had across Washington and specifically Panther Creek is

Right now and I think the best opportunity for most miners in the United States really as this transition to HBC NII.

And the economics are really going to drive that forward because the U S is the best market to invest in for HBC NII, whereas bitcoin mining is largely location agnostic and it's happy to go to cheaper locations higher risk locations more remote locations, then HBC and Iis.

Excellent. Thanks, and then just a quick follow up so as you're as you're reviewing your portfolio.

Is a lot. Um, and when we're looking at, what's the best way to service those customers? What's the best way to lock in long-term value under those agreements? Um, you know, there's a variety of different customers who are coming to us and some of them want the gpus included in there and there's an Associated premium that could be potentially extracted, uh, from that. So, you know, it's a little too early to indicate exactly what we would expect with economics. But, um, we do believe the economics from our conversations and from the, the internal modeling that we've done. And from the transactions, that a lot of the, um, companies in the space of announcing

Do you see an opportunity to engage in this type of megawatt redeployment.

The last couple of months is is very compelling, um, especially when we can execute it at a, at a smaller site like, uh, Washington, which we can consider fully funded today.

In a broader sense.

And when we're looking at whether or not we could redeploy our bitcoin mining asset somewhere else I think the opportunities are really few.

That's very helpful. Thanks very much. Thanks for taking my questions. That's it.

Thanks Martin.

Thank you.

And really I don't think that's a great use of managements resources, our time I think the best opportunity is to.

My next question comes from the line of Brian, Dobson of clear Street. Please go ahead Brian.

Basically bring forward what should be estimated free cash flow for mining operations today, and the cash and reinvest those into into HTC NII.

Yes. Thanks very much um I guess more broadly. Speaking about Bitcoin mining is more and more miners transition megawatts to HPC. How do you see the global hash rate evolving over the next few years?

Great. Thanks, Ben.

Okay.

Uh, you know, interesting question, Brian. Um,

Yeah.

Thank you.

Our next question comes from the line of Michael Donovan of Compass point. Please go ahead Michael.

Hi, Jonathan.

And you mentioned dollar per kilowatt trends can you quantified premium on dollar per kilowatt that youre seeing for power secured in Pennsylvania, Washington versus Texas.

Yes, it's a good question, there's a few variables that go into dollar per kilowatt on these leases. One is obviously timeline one is location.

Other one is risk factors that go into the development timeline and so it's not really possible to pinpoint an exact price per location, because theres multiple factors, which come into play when youre looking at what the total lease rates can can accumulate too I think if you look around at.

Personally I I think that hash rate is going to continue to evolve at the same rate that it it has been evolving um but if bitcoin price is not moving up meaningfully that would be a major headwind to to further growth. I think what you'll see more likely is that you know uh Bitcoin miners are continue to rotate out to lower and lower cost jurisdictions. And I think 1 of the big dynamics that is taking place is that, you know, the public miners represented, almost a third of the entire network. Um, and they all seem very keen on moving over to the higher economics associated with HPC and AI. So that removes a lot of the available and current existing um infrastructure for Bitcoin mining. So there could be some potential headwinds in

The transactions that are here and you look around at kind of what big farms could secure today at Pennsylvania.

Before it's even really broken ground at our Panther Creek site, which we plan to do next month.

Could probably lock in 140 to $150 per kilowatt per month, but I think when you look at that rate that rate takes into consideration. The location. It also takes into consideration. The shovel has not been put in the ground yet.

And what we don't want to do is we don't want to.

Gonna drive that forward because the US is the best Market to invest in for HPC and AI. Whereas Bitcoin mining is, is largely a location agnostic and it's happy to go to cheaper locations, higher risk locations, you know, more remote locations than HBC and AIS.

<unk> lock in a lot of discounts that would be associated with the build timeline and the uncertainties around the build timeline into a 10 to 15 year agreement what we'd rather do is we would rather execute against our construction milestones utilizing the the substantial war chest that we have today.

Yeah. Excellent. Thanks. And then just a quick follow-up. So as you're as you're reviewing your portfolio, um, you know, do you see an opportunity to engage in this type of megawatt redeployment?

Um, in in a broader sense.

And the closer we can bring that window down from signing a lease to actually generating revenue from a customer the more that we should expect to get.

And we're looking at.

It's hard to put an exact price, but I would think that if that window is shorter.

We could probably get upwards of $180 per kilowatt per month, if we didn't have the risks and uncertainties priced into the timeline that would bring it down to a 140 to $150 per kilowatt today.

I think the opportunities are really few um and really, I don't think that's a great use of Management's resources or time. I think the best opportunity is to uh you know, basically bring forward what should be estimated free cash flow for mining operations today into cash and reinvest those into into HPC and AI.

That's internal estimates and modeling so theres a lot of factors that go into that and we also think that as you execute against 2026 and as the gap between data center supply in data center demand continues to exacerbate those numbers could get even better.

Great. Thanks. Ben.

Thank you.

Our next question comes from the line of Michael Donovan of compass point. Please go ahead Michael.

And when we look at how does the margins work out for these contracts.

You're largely looking at it pretty fixed opex and so the difference for the company between getting a $140 per kilowatt hour per 140 per kilowatt per month versus 150 or one he is not only a huge increase in terms of the topline revenue, but it's an even larger increase in terms of profit margin in terms of.

Hi Ben, Jonathan. Um, Ben you mentioned dollar per kilowatt Trends. Can you quantify premium on on dollar per kilowatt that that you are seeing for power secured and Pennsylvania or Washington versus Texas?

Whats your adjusted EBITDA is going to be at a non all translates out into that multiple expansion that we're targeting with this transformation right. So if you're getting a significantly higher free cash flow out of that operation. That's what the multiple expansion is going to be based on so we really want to make sure that we're not pricing in those discounts were.

Trying to maximize the dollars per kilowatt per month in the lease.

And thats going to be the way that we achieved the highest multiple expansion for shareholders in the long term.

That's helpful Ben.

They talked about connecting data centers to be one campus and also being can impact us a bit more how can we think about distance between calls or pods versus theoretical loss and perfect performance for compute.

Yeah, it's a good question, you know, there's a few variables that go into dollar per kilowatt in these leases. Um, 1 is obviously timeline 1 is location. Um, another 1 is, is, you know, risk factors that go into the development timeline. And so, you know, it's not really possible to pinpoint an exact price, uh, per location because there's multiple factors, which come into play when you're looking at what the, the total lease rates can can accumulate to. I think if you look around at, you know, the transactions that are here and you look around at kind of you know, what bit Farms could secure today at Pennsylvania. Um you know before it's even really Broken Ground at our our Panther Creek site which we plan to do next month. You know we could probably lock in 140 to 150 dollars per kilowatt per month but I think when you look at that rate that rate takes into consideration the location. It also takes into consideration. The shovel has not been put in the ground yet.

Yes.

<unk> that Amazon pioneered it's called the regional campus strategy and they've effectively determined at somewhere around 300 miles is the cost effective range to build direct fiber infrastructure, but.

The real thing is is the latency that you could get between year sites now obviously when youre looking at these facilities.

You are even concerned about the latency in rack and in between racks are inside the facility to go from one rack to another rack on the other side of the facility. So that latency is becoming an increasingly bigger.

Bigger bottleneck as Youre looking at performance on the high high end of Gpus.

But what we've seen is that.

Most of our facilities and Montreal, where we'd be looking at this regional campus strategy, they're much closer than 300 miles are all within 90 minutes of Montreal. Many of them are 15, 20 minute drive apart from each other and so it would be possible to reduce the latency below two milliseconds with direct fiber it'd be pretty.

And what we don't want to do is we don't want to, um, lock in a lot of discounts that would be associated with the build timeline, and the uncertainties around the build timeline into a 1015 year agreement. What we'd rather do is we'd rather execute against, uh, our construction Milestones utilizing the, the substantial War chest that we have today, um, and the closer we can bring that window down from signing a lease to actually generating revenue from a customer, the more that we should expect to get, um, it's hard to put an exact price, but I would think that, if, you know, that window was shorter, um, you know, we could probably get upwards of $180 per kilowatt per month if we didn't have the risks and uncertainty priced into the timeline, that would bring it down to 140 to $150 per kilowatt today. Um, you know, that's internal estimates and and modeling. Um, so there's a lot of of factors that go into that and we also think that as you execute against, you know, 2026 and as the gap between data centers,

Cost effective to do so and you'd get a lot of benefits from.

From doing that in terms of the scalability given it's just so difficult too.

Scale up new megawatts in the province.

I appreciate it then.

Thank you I would now like to turn the conference back to Ben Danielle for closing remarks, Sir.

Thank you very much I would like to thank everyone for attending our earnings call. This morning. The management team is very excited.

Supply and data center, demand continues to exacerbate, those numbers could get even better um and when we look at, you know, how does the margins work out for these contracts? You know, you're largely looking at at at pretty fixed Opex and so the difference for the company between getting, you know, $140 per kilowatt hour 140 per kilowatt per month versus 150 or 1 180. It's not only a huge increase in terms of the Topline Revenue. But it's an even larger increase in terms of the profit margin

Our long term investment strategy. We believe is fully aligned with long term investors and we are really really excited about the future of this company and what we're building at did farms and we appreciate your continued support thank you.

This concludes today's conference call. Thank you for participating you may now disconnect.

In, in terms of, you know what, your adjusted IBA is going to be and then not all translates out into that multiple expansion that we're targeting with this transformation, right? So if you're getting a significantly Higher free cash flow out of that operation, that's what the multiple expansion is going to be based on. So we really want to make sure that we're not pricing in those discounts. We're trying to maximize the dollar per kilowatt per month in the lease. Um and that's going to be the way that we achieve the highest multiple expansion for for shareholders in the long term.

That's helpful then. Um, they talked about connecting data centers to be 1 Campus. And I was hoping they can impact us a bit more. How can we think about distance between calls or pods versus theoretical loss and per performance for compute?

Amazon pioneered, it's called the regional campus strategy. Um and and they've effectively determined that somewhere around. Uh, 300 miles is the cost effective range to build direct fiber infrastructure. But the the real thing is, is the latency that you could get between your sites. Now, obviously, when you're looking at these facilities, um, you know, you're even concerned about the latency in rack and in between racks or inside the facility to go from 1 rack to another rack on the other side of the facility. So that latency is becoming an increasingly, uh, bigger bottleneck. As as you're looking at performance, on the high high end of of gpus. Um, but what we've seen is that um, you know, most of our facilities in Montreal where we'd be looking at this Regional campus strategy, they're they're much closer than 300 miles. They're all within 90 minutes of of Montreal. Um, many of them are 15 20 minute drive apart from each other and so it would be possible to reduce the latency, you know, below 2 milliseconds with direct fiber.

It would be pretty cost-effective to do so, and you'd get a lot of benefits from doing that in terms of scalability, given it's just so difficult to scale up new megawatts in the province.

appreciate it, been

Thank you. I would now like to turn the conference back to Ben ganiel for closing remarks, sir.

Thank you very much. Uh, I would like to thank everyone for attending our earnings call this morning. Uh, you know, the management team is very excited. Our long-term investment strategy, we believe, is fully aligned with long-term investors. We are really, really excited about the future of this company and what we're building at Bitfarms, and we appreciate your continued support. Thank you.

This concludes today's conference call, thank you for participating. You may now disconnect