Q4 2025 Bitfarms Ltd Earnings Call

March 31, 2026

Martin Toner: Good day, and welcome to the Bitfarms' Fiscal 2025 Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question and answer session. Instructions will be given at that time. Please note this call is being recorded. I would like to turn the call over to Jennifer Drew-Bear from Bitfarms' Investor Relations. Please go ahead.

Operator: Good day, and welcome to the Bitfarms' Fiscal 2025 Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question and answer session. Instructions will be given at that time. Please note this call is being recorded. I would like to turn the call over to Jennifer Drew-Bear from Bitfarms' Investor Relations. Please go ahead.

Speaker #1: Instructions will be given at that time. Please note, this call is being recorded. I would like to turn the call over to Jennifer Drew-Bear from Bitfarms Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you, and welcome to the Bitfarms Fiscal Year 2025 conference call. With me on the call today are Ben Gagnon, Chief Executive Officer and Director, and Jonathan Mir, Chief Financial Officer.

Jennifer Drew-Bear: Thank you, and welcome to Bitfarms's Fiscal Year 2025 conference call. With me on the call today are Ben Gagnon, Chief Executive Officer and Director, and Jonathan Mir, Chief Financial Officer. Before we begin, please note this call is being webcast with an accompanying slide presentation. Today's press release and our presentation can be accessed on our website under the Investor section. Turning to slide 2. 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 this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. I invite you to consult Bitfarms's 10-K for a complete list. Also, please note that references will be made to certain non-GAAP financial measures and therefore may not be comparable to similar measures presented by other companies.

Speaker #2: Before we begin, please note this call is being webcast with an accompanying slide presentation. Today's press release and our presentation can be accessed on our website under the Investor section.

Speaker #2: 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 statement.

Jennifer Drew-Bear: Turning to slide 2. 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 this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. I invite you to consult Bitfarms's 10-K for a complete list. Also, please note that references will be made to certain non-GAAP financial measures and therefore may not be comparable to similar measures presented by other companies.

Speaker #2: The forward-looking information is based on certain assumptions and is subject to risks and uncertainties. And I invite you to consult Bitfarms' 10-K for a complete list.

Speaker #2: Also, please note that references will be made to certain non-GAAP financial measures, and therefore may not be comparable to similar measures presented by other companies.

Speaker #2: We invite listeners to refer to today's press release and our 10-K for definitions of the aforementioned non-GAAP measures and their reconciliations to GAAP measures.

Jennifer Drew-Bear: We invite listeners to refer to today's press release and our 10-K for definitions of the aforementioned non-GAAP measures and their reconciliations to GAAP measures. Please note that all financial references are denominated in US dollars unless otherwise noted. Now turning to slide 3. It is my pleasure to turn over the call to Ben Gagnon, Director and Chief Executive Officer. Ben, the floor is yours.

Speaker #2: Please note that all financial references are denominated in US dollars unless otherwise noted. And now, turning to slide three, it is my pleasure to turn over the call to Ben Gagnon, Director and Chief Executive Officer.

Speaker #2: Ben, the floor is yours.

Speaker #3: Good morning, everyone, and welcome to our Fiscal Year 2025 earnings call. In 2025, we made a bold decision to walk away from our legacy business—Bitcoin—and build the infrastructure in North America for what comes next.

Ben Gagnon: Good morning, everyone, and welcome to our Fiscal Year 2025 Earnings Call. In 2025, we made a bold decision to walk away from our legacy business, Bitcoin, and build the infrastructure in North America for what comes next, HPC and AI. It was a year of deliberate and consequential transformation with a clear mandate. Secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI. I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today, the capital structure, the sites, the team, the strategy, was engineered through deliberate choices, developed with discipline and built to propel us forward.

Speaker #3: HBC and AI. It was a year of deliberate and consequential transformation with a clear mandate: secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI.

Ben Gagnon: Secure North American pipeline, strengthen our balance sheet, accelerate site development, and position ourselves to engage customers from a place of operational momentum at the peak of the energy bottleneck constraining the growth of AI. I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today, the capital structure, the sites, the team, the strategy, was engineered through deliberate choices, developed with discipline and built to propel us forward.

Speaker #3: I can say with confidence and pride that we accomplished exactly what we set out to do. The foundation you see today—the capital structure, the sites, the team, the strategy—was engineered through deliberate choices, developed with discipline, and built to propel us forward.

Speaker #3: We made foundational changes to reposition the business and put 100% of our focus on North American HBC infrastructure development. No half measures, no compromises, and in time, no Bitcoin.

Ben Gagnon: We made foundational changes to reposition the business and made 100% of our focus on North American HPC infrastructure development. No half measures, no compromises, and in time, no Bitcoin. We built a new company, and while we are presenting as Bitfarms today, tomorrow marks our beginning as Keel Infrastructure. The name says it all. A keel is the bottommost structural component of a vessel. It's what keeps it stable and moving forward in the right direction, regardless of the condition above the waterline. It is structural, it is essential, and it is exactly how we see our role in the HPC and infrastructure landscape. We are not here to compete with hyperscalers or neo clouds. We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world's most advanced AI platforms to deploy on time and scale without interruption.

Speaker #3: We built a new company. And while we are presenting as Bitfarms today, tomorrow marks our beginning as Keel Infrastructure. The name says it all.

Speaker #3: A Keel is the bottommost structural component of a vessel. It's what keeps it stable and moving forward in the right direction regardless of the condition above the waterline.

Ben Gagnon: It is structural, it is essential, and it is exactly how we see our role in the HPC and infrastructure landscape. We are not here to compete with hyperscalers or neo clouds. We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world's most advanced AI platforms to deploy on time and scale without interruption.

Speaker #3: It is structural; it is essential; and it is exactly how we see our role in the HBC and infrastructure landscape. We are not here to compete with hyperscalers or neoclouds.

Speaker #3: We are here to enable them. Our focus is providing the critical and largely invisible foundation that will allow the world’s most advanced AI platforms to deploy on time and scale without interruption.

Speaker #3: We expect to close the re-domiciliation and finalize our rebranding efforts tomorrow, April 1st. And we'll begin trading under the ticker KEEL two business days after completion of the transaction on the Nasdaq and the TSX.

Ben Gagnon: We expect to close the re-domiciliation and finalize our rebranding efforts tomorrow, 1 April. We'll begin trading under the ticker Keel two business days after completion of the transaction on the Nasdaq and the TSX. We are entering this new phase from a position of strength. With over 2GW in our pipeline, Keel is a regional leader with some of the largest power land portfolios in some of the highest demand markets in North America, and with robust financial strength to execute against our plan. Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and ultimately to start signing leases, giving the company significant financial flexibility to execute on our strategy. Our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or colocation facilities.

Speaker #3: We are entering this new phase from a position of strength. With over 2 gigawatts in our pipeline, KEEL is a regional leader with some of the largest power land portfolios and some of the highest demand markets in North America.

Speaker #3: And with robust financial strength to execute against our plan. Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and, ultimately, to start signing leases, giving the company significant financial flexibility to execute on our strategy.

Ben Gagnon: Our current liquidity is far in excess of the CapEx budgeted to get us through permitting and ultimately to start signing leases, giving the company significant financial flexibility to execute on our strategy. Our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or colocation facilities.

Speaker #3: And our strategy is equally as clear. We are designing all of our site and campus developments as either powered shell or colocation facilities. We believe this is where we can deliver the most value to shareholders and serve our potential customers at the speed and to the specifications they need.

Ben Gagnon: We believe this is where we can deliver the most value to shareholders and serve our potential customers at the speed and to the specifications they need. We were originally exploring, in parallel to colocation, the potential benefits of pursuing a small amount of GPU-as-a-service at our Washington site, Moses Lake, where due to the lowest cost power for data centers in the country and a relatively smaller footprint, we believed it could be an avenue to drive additional shareholder value. Since our last quarterly call, we have spoken with an increased volume of potential customers. It's clear from those conversations the most accretive business model for the site is one of colocation. This is not specific to Moses Lake and applies to all of our other sites as well, where demand is even higher.

Speaker #3: We were originally exploring, in parallel to colocation, the potential benefits of service at our Washington site, Moses Lake. Where, due to the lowest-cost power for data centers in the country and a relatively smaller footprint, we believed it could be an avenue to drive additional shareholder value.

Speaker #3: Since our last quarterly call, we have spoken with an increased volume of potential customers. And, as is clear from those conversations, the most creative business model for the site is one of colocation.

Ben Gagnon: Since our last quarterly call, we have spoken with an increased volume of potential customers. It's clear from those conversations the most accretive business model for the site is one of colocation. This is not specific to Moses Lake and applies to all of our other sites as well, where demand is even higher.

Speaker #3: This is not specific to Moses Lake and applies to all of our other sites as well, where demand has been even higher. So we will focus on what we do best: being an infrastructure developer and owner.

Ben Gagnon: We will focus on what we do best, being an infrastructure developer and owner. This plays directly to our core competencies. We are a team of developers united by disciplined action, building cost-effective, institutional-grade infrastructure at the pace our customers require. The same capabilities that built our energy platform, speed to market, capital discipline, operational rigor, are precisely what HPC and AI deployments demand today. This is just the natural extension of what we do best. With all the pieces in place, and with the overwhelming support of our shareholders who voted over 99% in favor of the HPC and AI pivot, the US redomiciliation, and the rebrand, starting tomorrow, we are Keel Infrastructure. Turning to slide 4. When we set out on our pivot, we developed a 3-year transformation plan. One that as of today, we are nearly halfway through completing.

Speaker #3: This plays directly to our core competencies. We are a team of developers, united by disciplined action, building cost-effective, institutional-grade infrastructure at the pace our customers require.

Speaker #3: The same capabilities that built our energy platform—speed to market, capital discipline, operational rigor—are precisely what HBC and AI deployments demand today. This is just the natural extension of what we do best.

Speaker #3: So, with all the pieces in place, and with the overwhelming support of our shareholders—who voted over 99% in favor of the HBC and AI pivot, the U.S. re-domicile, and the rebrand—starting tomorrow, we are KEEL Infrastructure.

Ben Gagnon: With all the pieces in place, and with the overwhelming support of our shareholders who voted over 99% in favor of the HPC and AI pivot, the US redomiciliation, and the rebrand, starting tomorrow, we are Keel Infrastructure. Turning to slide 4. When we set out on our pivot, we developed a 3-year transformation plan. One that as of today, we are nearly halfway through completing.

Speaker #3: Turning to slide four. When we set out on our pivot, we developed a three-year transformation plan. One that, as of today, we are nearly halfway through completing.

Speaker #3: In 2025, we did the intensive foundational work for our transformation, including the Stronghold acquisition, securing more power in Pennsylvania, rebalancing the portfolio to North America, a $588 million raise—fully institutional and oversubscribed—our US GAAP transition, New York headquarters, and establishing a new executive team.

Ben Gagnon: In 2025, we did the intensive foundational work for our transformation, including the Stronghold acquisition, securing more power in Pennsylvania, rebalancing the portfolio to North America, a $588 million raise, fully institutional and oversubscribed, our US GAAP transition, New York headquarters, and establishing a new executive team. This work is done. With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world, and a balance sheet engineered to see us through 2026, we are well-positioned to continue our site development and deliver against the timelines our prospective hyperscalers and neo cloud customers need. 2026 is all about execution. Effective tomorrow, we will have completed our re-domiciliation to the United States and officially rebranded as Keel Infrastructure.

Speaker #3: This work is done. With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world, and a balance sheet engineered to CS3 2026, we are well positioned to continue our site development and deliver against the timelines our prospective hyperscalers and neocloud customers need.

Ben Gagnon: With power and land secured in some of the power markets that matter most, a team of internal experts and strategic partners that have built data centers for the largest companies in the world, and a balance sheet engineered to see us through 2026, we are well-positioned to continue our site development and deliver against the timelines our prospective hyperscalers and neo cloud customers need. 2026 is all about execution.

Speaker #3: 2026 is all about execution. Effective tomorrow, we will have completed our re-domiciliation to the United States and officially rebranded as KEEL Infrastructure. Two major milestones that position the company for the next phase of growth.

Ben Gagnon: Effective tomorrow, we will have completed our re-domiciliation to the United States and officially rebranded as Keel Infrastructure. Two major milestones that position the company for the next phase of growth. With that complete, we expect the next significant milestones to come from executing against our developments at Panther Creek, Sharon, and Moses Lake, where we are moving full steam ahead and working diligently across three simultaneous and active work streams.

Ben Gagnon: Two major milestones that position the company for the next phase of growth. With that complete, we expect the next significant milestones to come from executing against our developments at Panther Creek, Sharon, and Moses Lake, where we are moving full steam ahead and working diligently across three simultaneous and active work streams. One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering in line with ongoing customer conversations and requirements. And of course, three, our go-to-market to secure highly financiable leases with investment-grade tenants. Commercialization is well underway. The upcoming milestones investors can expect are completion of pre-construction activities like permitting, progress in customer engagement, and ultimately lease execution, which we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind.

Speaker #3: With that complete, we expect the next significant milestones to come from executing against our developments at Panther Creek, Sharon, and Moses Lake. Where we are moving full steam ahead and working diligently across three simultaneous, and active, work streams.

Ben Gagnon: One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering in line with ongoing customer conversations and requirements. And of course, three, our go-to-market to secure highly financiable leases with investment-grade tenants. Commercialization is well underway.

Speaker #3: One, finalizing permits, which we expect to be done in the coming months. Two, continued work on architecture and engineering, in line with ongoing customer conversations and requirements.

Speaker #3: And, of course, three, our go-to-market to secure highly financeable leases with investment-grade tenants. Commercialization is well underway. The upcoming milestones investors can expect are completion of pre-construction activities like permitting, progress in customer engagement, and ultimately, lease execution.

Ben Gagnon: The upcoming milestones investors can expect are completion of pre-construction activities like permitting, progress in customer engagement, and ultimately lease execution, which we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind.

Speaker #3: These are achievements we are confident we can achieve this year and will be major catalysts. 2026 is also the year where we expect to leave Bitcoin and Bitcoin mining behind.

Speaker #3: While we were probably one of the first miners to commence wind-down of our Bitcoin mining exposure to reinvest that capital into infrastructure for HBC and AI, we will be accelerating those efforts in 2026 as site developments progress.

Ben Gagnon: While we are probably one of the first miners to commence wind down of our Bitcoin mining exposure to reinvest that capital into infrastructure for HPC and AI, we will be accelerating those efforts in 2026 as site developments progress. 2027 is all about delivery. This is the year when we anticipate that sites would come online, we'd begin delivering megawatts to customers, HPC and AI revenue really begins, and we complete our transition to a premier North American HPC and AI infrastructure company. By the end of 2027, we expect Keel will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington, and Quebec, and we will just continue to grow and scale from there in 2028 and beyond to over 2GW as we execute against our expansion capacity. Turning to slide 5. In HPC infrastructure, power, location, and timelines are everything.

Speaker #3: 2027 is all about delivery. This is the year when we anticipate that sites would come online, we'd begin delivering megawatts to customers, HBC and AI revenue really begins, and we complete our transition to a premier North American HBC and AI infrastructure company.

Speaker #3: By the end of 2027, we expect KEEL will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington, and Quebec. And we will just continue to grow and scale from there in 2028 and beyond to over 2 gigawatts as we execute against our expansion capacity.

Ben Gagnon: By the end of 2027, we expect Keel will be a proven infrastructure developer and a regional leader across Pennsylvania, Washington, and Quebec, and we will just continue to grow and scale from there in 2028 and beyond to over 2GW as we execute against our expansion capacity. Turning to slide 5. In HPC infrastructure, power, location, and timelines are everything.

Speaker #3: Turning to slide five. In HBC infrastructure, power location and timelines are everything. We hold something scarce and valuable: secured power, land, and expansion capacity in Pennsylvania, Washington State, and Quebec.

Ben Gagnon: We hold something scarce and valuable, secured power, land, and expansion capacity in Pennsylvania, Washington State, and Quebec. Some of the most in-demand markets with some of the biggest barriers to entry. We know it, and so do our potential tenants. Our campuses offer solutions to hyperscalers and Neocloud's greatest scaling problems. Location, proximity, and fiber connectivity to major metro areas and data center clusters, solving for latency issues and giving our tenants proximity to their own customers and other data centers. Timelines. A robust secured power for 2026, 2027, and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multi-year wait lists are the norms. We create value for tenants by enabling them to deploy years earlier by leasing from us rather than to invest in growing organically in an energy-efficient, cool climates.

Speaker #3: Some of the most in-demand markets have some of the biggest barriers to entry. We know it, and so do our potential tenants. Our campuses offer solutions to hyperscalers and neoclouds' greatest scaling problems.

Speaker #3: Location, proximity, and fiber connectivity to major metro areas and data center clusters solve for latency issues and give our tenants proximity to their own customers and other data centers.

Ben Gagnon: Location, proximity, and fiber connectivity to major metro areas and data center clusters, solving for latency issues and giving our tenants proximity to their own customers and other data centers.

Ben Gagnon: Timelines. A robust secured power for 2026, 2027, and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multi-year wait lists are the norms. We create value for tenants by enabling them to deploy years earlier by leasing from us rather than to invest in growing organically in an energy-efficient, cool climates.

Speaker #3: Time. Timelines. A robust, secured power for '26, '27, and with expansion capacity in 2028 is highly coveted in an environment where energy capacity is hard to find and multi-year waitlists are the norm.

Speaker #3: We create value for tenants by enabling them to deploy years earlier by leasing from us, rather than investing in growing organically. An energy-efficient, cool climate.

Ben Gagnon: The lower the PUE, the more critical megawatts. Panther Creek is a great example of seeing the hyperscaler and Neocloud's appetite at play. While there was a lot of interest in the site last year, inbound customer activity surged after we secured zoning in February. This is not a coincidence. It is a proof point and one that we've been making for the last year, but may still be confusing to some investors. We'd like to be clear that investment-grade tenants value de-risk sites where they can move from lease to revenue fast. The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders. Turning to slide six. It is indisputable that power is the binding constraint for AI infrastructure deployment, and will remain so for the coming years.

Speaker #3: The lower the PUE, the more critical megawatts. Panther Creek is a great example of seeing the hyperscaler and neocloud's appetite at play. While there was a lot of interest in the site last year, inbound customer activity surged after we secured zoning in February.

Speaker #3: This is not a coincidence. It is a proof point, and one that we've been making for the last year, but it may still be confusing to some investors.

Speaker #3: So we'd like to be clear that investment-grade tenants value de-risked sites where they can move from lease to revenue fast. The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders.

Ben Gagnon: The more we advance, the better our leverage. The better our leverage, the better the leases, and the more long-term value we create for shareholders. Turning to slide six. It is indisputable that power is the binding constraint for AI infrastructure deployment, and will remain so for the coming years.

Speaker #3: Turning to slide six. It is indisputable that power is the binding constraint for AI infrastructure deployment, and it will remain so for the coming years.

Ben Gagnon: Leading investment banks, Goldman Sachs, JP Morgan, Wells Fargo, Guggenheim, Moelis, they've all published extensively on this, and the consensus is clear. New power generation cannot come online fast enough to meet AI demand today, tomorrow, or in the next 5 years. This bottleneck is structural, not cyclical. Hyperscalers and Neoclouds that used to plan on 12-month horizons are now locking in 24- to 36-month supply chain commitments. Not tied to specific projects, but as platform-level agreements, and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites, the power we have secured, and in some cases, the incremental power opportunities that make up our 2.2GW pipeline. Turning to slide 7.

Speaker #3: Leading investment banks—Goldman Sachs, JPMorgan, Wells Fargo, Guggenheim, Moelis—they've all published extensively on this. And the consensus is clear: new power generation cannot come online fast enough to meet AI demand today, tomorrow, or in the next five years.

Speaker #3: This bottleneck is structural, not cyclical. Hyperscalers and neoclouds that used to plan on 12-month horizons are now locking in 24- to 36-month supply chain commitments.

Ben Gagnon: Not tied to specific projects, but as platform-level agreements, and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites, the power we have secured, and in some cases, the incremental power opportunities that make up our 2.2GW pipeline. Turning to slide 7.

Speaker #3: Not tied to specific projects, but as platform-level agreements, and are now actively competing for the power and land to deploy it. While you are probably familiar with this information, here you can see a summary of the five development sites.

Speaker #3: The power we have secured, and in some cases, the incremental power opportunities that make up our 2.2-gigawatt pipeline. Turning to slide seven, I want to take a moment to put our current valuation in context.

Ben Gagnon: I want to take a moment to put our current valuation in context, because there is a meaningful disconnect between where we trade today and the value we are positioned to capture as a company. When we analyze our current valuation against our peers, the picture becomes clear. At approximately $1.9 million per available megawatt of secure 2027 capacity, we're trading in the middle of a Bitcoin miner group, valued at roughly $1.7 to $2.1 million per 2027 megawatt. Meaning we are being valued based on having power, but not what we are doing with it. For shareholders and bond holders, we see three distinct catalysts, each capable of driving meaningful re-ratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 to $6 million per 2027 megawatt.

Speaker #3: Because there is a meaningful disconnect between where we trade today and the value we are positioned to capture as a company. When we analyze our current valuation against our peers, the picture becomes clear.

Speaker #3: At approximately $1.9 million per available megawatt of secured 2027 capacity, we're trading in the middle of a Bitcoin miner group, valued at roughly $1.7 to $2.1 million per 2027 megawatt.

Ben Gagnon: Meaning we are being valued based on having power, but not what we are doing with it. For shareholders and bond holders, we see three distinct catalysts, each capable of driving meaningful re-ratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 to $6 million per 2027 megawatt.

Speaker #3: Meaning we are being valued based on having power, but not what we are doing with it. For shareholders and bondholders, we see three distinct catalysts.

Speaker #3: Each capable of driving meaningful re-ratings. The first is obviously lease execution. Across our sector, companies that have signed leases trade at $4 million to $6 million per 27 megawatt.

Ben Gagnon: A 2 to 3 times premium to where we are today. This is the market's consistent signal, driven entirely by lease execution. Not facility delivery, not revenue generation, just signed leases. A signed lease secures revenue and financing, de-risking the developments. The market pays for that. With nearly 500MW actively being commercialized today and visibility on permitting across Panther Creek, Sharon, and Moses Lake, this catalyst is well within reach. The second catalyst, and arguably the most powerful for long-term holders, is securing our expansion capacity. Two-thirds of our 2.2GW portfolio, or approximately 1.5GW, is expansion capacity, which we believe the market is assigning little to no value.

Speaker #3: A two to three times premium to where we are today. This is the market’s consistent signal. Driven entirely by lease execution—not facility delivery, not revenue generation, just signed leases.

Speaker #3: A signed lease secures revenue and financing, de-risking the developments. The market pays for that. With nearly 500 megawatts actively being commercialized today and visibility on permitting across Panther Creek, sharing in Moses Lake, this catalyst is well within reach.

Ben Gagnon: The second catalyst, and arguably the most powerful for long-term holders, is securing our expansion capacity. Two-thirds of our 2.2GW portfolio, or approximately 1.5GW, is expansion capacity, which we believe the market is assigning little to no value.

Speaker #3: The second catalyst, and arguably the most powerful for long-term holders, is securing our expansion capacity. Two-thirds of our 2.2-gigawatt portfolio, or approximately 1.5 gigawatts, is expansion capacity, which we believe the market is assigning little to no value.

Ben Gagnon: While securing these megawatts is a process that will take more time, we believe additional megawatts can be secured in H2 2026, requiring very little CapEx, but representing significant embedded value as powered land even before a lease is signed or there's a shovel in the ground. The third catalyst is delivering in 2027. Once facilities are de-risked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically, and the operator valuation numbers become transformational yet again. We are not taking a leap of faith on technology, our ability to secure power, or market demand. The tech is here. The power is secured. The sites are advancing. The inbound demand is real. What the market has not yet priced in is the transformation that happens when a developer becomes a counterparty. When we move from site advancing to lease executing.

Speaker #3: While securing these megawatts is a process that will take more time, we believe additional megawatts can be secured in the second half of 2026.

Speaker #3: Requiring very little CapEx, but representing significant embedded value as powered land, even before a lease is signed or there is a shovel in the ground.

Ben Gagnon: The third catalyst is delivering in 2027. Once facilities are de-risked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically, and the operator valuation numbers become transformational yet again. We are not taking a leap of faith on technology, our ability to secure power, or market demand.

Speaker #3: The third catalyst is delivery in 2027. Once facilities are de-risked through commissioning and begin generating revenue under long-term contracts, the development risk should drop dramatically, and the operator valuation numbers become transformational yet again.

Speaker #3: We are not taking a leap of faith on technology, our ability to secure power, or market demand. The tech is here. The power is secured.

Ben Gagnon: The tech is here. The power is secured. The sites are advancing. The inbound demand is real. What the market has not yet priced in is the transformation that happens when a developer becomes a counterparty. When we move from site advancing to lease executing.

Speaker #3: The sites are advancing. The inbound demand is real. What the market has not yet priced in is the transformation that happens when a developer becomes a counterparty.

Speaker #3: When we move from site advancing to lease executing, this is the main opportunity ahead of us: to accelerate permitting, execute leases, secure our expansion capacity, and ultimately deliver to our customers.

Ben Gagnon: This is the main opportunity ahead of us, to accelerate permitting, execute leases, secure our expansion capacity, and ultimately deliver to our customers. This is how we will create value for our shareholders and bond holders. Turning to slide 8. Our execution plan is defined by six key areas, each supporting our ability to deliver at the pace and scale our future customers require. First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development and over 50 years of data center construction experience combined in just the past few months. People who have delivered at scale for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise.

Speaker #3: This is how we create value for our shareholders and bondholders. Turning to slide eight, our execution plan is defined by six key areas, each supporting our ability to deliver at the pace and scale our future customers require.

Ben Gagnon: First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development and over 50 years of data center construction experience combined in just the past few months. People who have delivered at scale for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise.

Speaker #3: First, we've secured our deep bench of talent by adding over 60 years of infrastructure and development experience, and over 50 years of data center construction experience combined, in just the past few months.

Speaker #3: People who have delivered at scale, for the most demanding customers in the world. Jonathan Mir joined as CFO, bringing 25 years of energy infrastructure strategy and project finance expertise.

Ben Gagnon: We have also added an SVP of construction and of power, a VP of HPC operations, and a head of permitting to oversee the execution of these critical functions. We've assembled the right team to execute on our vision. Second, we are engaging the right industry leaders as partners. T5, Turner Construction, Corgan, CWT, Vertiv. These firms have built data centers for the world's largest hyperscalers. Not once, but hundreds of times. When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes. Third, we have the capital required to bring our sites to market.

Speaker #3: We have also added an SVP of Construction and of Power, a VP of HPC Operations, and a Head of Permitting to oversee the execution of these critical functions.

Speaker #3: We've assembled the right team to execute on our vision. Second, we are engaging the right industry leaders as partners. T5, Turner Construction, Corrigan, WWT, Vertiv, these firms have built data centers for the world's largest hyperscalers, Mount Once, but hundreds of times.

Ben Gagnon: Not once, but hundreds of times. When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes. Third, we have the capital required to bring our sites to market.

Speaker #3: When customers look at our project partners, which will be available on the new website when it launches tomorrow, they will see that we have also assembled the right partners to ensure better outcomes.

Speaker #3: Third, we have the capital required to bring our sites to market. As of March 27, 2026, our liquidity stands at $520 million in cash and Bitcoin.

Ben Gagnon: As of 27 March 2026, our liquidity stands at $520 million in cash and Bitcoin, which we expect is much more than the CapEx budgeted to get us to a lease at Panther Creek, Sharon, and Washington. Jonathan will go into more detail on our capital position and financing strategy shortly, but the headline is simple. We're well-funded and can move fast. Fourth, a disciplined Bitcoin exit. It is clear we are no longer a Bitcoin miner. However, with strong, robust liquidity, we can have a disciplined approach to our exit strategy. We will continue to operate up until the time sites need to be prepared for construction, maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure. Fifth, power assets that cannot be replicated.

Speaker #3: What we expect is much more than the CapEx budgeted to get us to a lease at Panther Creek's Sharon in Washington. Jonathan will go into more detail on our capital position and financing strategy shortly, but the headline is simple.

Speaker #3: We're well-funded and can move fast. Fourth, a disciplined Bitcoin exit. It is clear we are no longer a Bitcoin miner. However, with strong, robust liquidity, we can have a disciplined approach to our exit strategy.

Ben Gagnon: We will continue to operate up until the time sites need to be prepared for construction, maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure. Fifth, power assets that cannot be replicated.

Speaker #3: We will continue to operate up until the time sites need to be prepared for construction. Maximizing free cash flow before selling the miners. We will also opportunistically sell Bitcoin into strength to capture and reinvest every dollar we can into HPC and AI infrastructure.

Speaker #3: Fifth, power assets that cannot be replicated. Our megawatts sit in regions with large barriers to entry. Pennsylvania, Washington State, and Quebec all have multi-year waitlists.

Ben Gagnon: Our megawatts sit in regions with large barriers to entry. Pennsylvania, Washington State, and Quebec all have multiple year wait lists. No one is cutting the line. Our 350MW at Panther Creek, 110MW at Sharon, and 18MW in Washington were secured before the AI demand wave made these markets highly coveted. This isn't power others can easily replicate, giving us a competitive edge with high-quality tenants who understand these markets and are hungry for assets like ours. Which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge, so the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics.

Speaker #3: No one is cutting the line. Our 350 megawatts at Panther Creek, 110 megawatts at Sharon, and 18 megawatts in Washington were secured before the AI demand wave made these markets highly coveted.

Speaker #3: This isn't power others can easily replicate. Giving us competitive edge with high-quality tenants who understand these markets and are hungry for assets like ours.

Ben Gagnon: Which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge, so the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics.

Speaker #3: Which leads us to our sixth point. In this market, speed to power is what drives value. For our customers, the opportunity cost of delayed deployment is huge.

Speaker #3: So, the priority is getting capacity online as quickly as possible. Every day of delay is lost revenue. As a result, power availability and certainty of delivery are the primary drivers of lease economics.

Ben Gagnon: This dynamic has pushed lease rates higher since our Q3 call, exactly as we said it would. The opportunity in front of Keel Infrastructure is real. We now have the assets and the team is ready. I am so proud of what we built in 2025, and I'm confident in what we'll deliver in 2026 and 2027. With that, I'll turn the call over to Jonathan.

Speaker #3: This dynamic has pushed lease rates higher since our Q3 call, exactly as we said it would. The opportunity in front of Keel Infrastructure is real.

Speaker #3: We now have the assets, and the team is ready. I'm so proud of what we built in 2025, and I'm confident in what we'll deliver in 2026 and 2027.

Speaker #3: With that, I'll turn the call over to Jonathan.

Jonathan Mir: Thanks, Ben. Turning to slide 9. I joined the team five months ago. My focus has been on sharpening our approach to capital allocation, strengthening our balance sheet and capital structure, and ensuring the financing actions support long-term shareholder value creation. I've had a front-row seat to the depth of talent, the operational discipline, and the strategic momentum across Bitfarms. I work closely with our operations and development teams, both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead. What stood out to me is the extraordinary potential we have, driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history, and a broad team that's both deeply engaged and committed to excellence. We're moving quickly and with purpose.

Speaker #2: Thanks, Ben. Turning to slide nine. I joined the team five months ago. My focus has been on sharpening our approach to capital allocation, strengthening our balance sheet and capital structure, and ensuring that our financing actions support long-term shareholder value creation.

Speaker #2: I've had a front-row view of the depth of talent, the operational discipline, and the strategic momentum across Bitfarms. I work closely with our operations and development teams, both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead.

Jonathan Mir: I work closely with our operations and development teams, both to understand the current trajectory of our assets and to ensure our capital plans are aligned with the opportunities ahead. What stood out to me is the extraordinary potential we have, driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history, and a broad team that's both deeply engaged and committed to excellence. We're moving quickly and with purpose.

Speaker #2: What stood out to me is the extraordinary potential we have. Driven by the quality and potential of our sites, a strong balance sheet, the best liquidity position in the company's history, and a broad team that's both deeply engaged and committed to excellence.

Speaker #2: We're moving quickly and with purpose. I'm pleased to be here with you today and discuss the progress we're making. I'll use this time to walk through our performance for fiscal year 2025 and outline our current capital strategy that we believe supports the creative growth you're targeting for 2026 and beyond.

Jonathan Mir: I'm pleased to be here with you today and discuss the progress we're making. I'll use this time to walk through our performance for fiscal year 2025 and outline our current capital strategy that we believe supports the accretive growth we are targeting for 2026 and beyond. Turning to slide 10. Before discussing our financials for the quarter, I want to briefly frame the results as presented this quarter. As of Q3 2025, the Paso Pe facility in Paraguay has been classified as held for sale. As a result, all revenues, operating costs, and asset balances associated with Paso Pe are treated as discontinued operations in our fiscal year 2025 financials. When I refer to continuing operations, I am speaking exclusively about our North American platform, the foundation of our transition into HPC and AI infrastructure.

Speaker #2: Turning to slide 10. Before discussing our financials for the quarter, I want to briefly frame how the results are presented this quarter. As of Q3 2025, the passive pay facility in Paraguay has been classified as held for sale.

Jonathan Mir: As a result, all revenues, operating costs, and asset balances associated with Paso Pe are treated as discontinued operations in our fiscal year 2025 financials. When I refer to continuing operations, I am speaking exclusively about our North American platform, the foundation of our transition into HPC and AI infrastructure.

Speaker #2: As a result, all revenues, operating costs, and asset balances associated with passive pay are treated as discontinued operations and our fiscal year 2025 financials.

Speaker #2: So, when I refer to continuing operations, I am speaking exclusively about our North American platform—the foundation of our transition into HPC and AI infrastructure.

Jonathan Mir: With that, revenue for fiscal year 2025 was $229 million, up 72% year-over-year. Operating loss for fiscal year 2025 was $150 million, including non-cash depreciation of $98 million and $28 million of impairment charges. This compares to an operating loss of $28 million in 2024, which included $102 million of non-cash depreciation and $4 million of impairment charges. Net loss for 2025 was $209 million or $0.38 loss per basic and diluted share, compared to a 2024 net loss of $7 million or $0.02 loss per basic and diluted share.

Speaker #2: With that, revenue for fiscal year 2025 was $229 million, up 72% year over year. Operating loss for fiscal year 2025 was $150 million, including non-cash depreciation of $98 million and $28 million of impairment charges.

Speaker #2: This compares to an operating loss of $28 million in 2024, which included $102 million of non-cash depreciation and $4 million of impairment charges. Net loss for 2025 was $209 million, or a $0.38 loss per basic and diluted share, compared to a 2024 net loss of $7 million, or a $0.02 loss per basic and diluted share.

Jonathan Mir: The differences between 2024 and 2025 were driven by a number of factors, including change in fair market value of digital assets, primarily due to the decline of Bitcoin prices and realization of gains on disposal of Bitcoin during the year. Two additional items also impacted year-over-year comparability. First, we saw a loss of $68 million, reflecting changes in our derivative assets and liabilities. Second, 2025 impairment charges were $25 million higher than in 2024. For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth.

Speaker #2: The differences between 2024 and 2025 were driven by a number of factors, including change in fair market value of digital assets, primarily due to the decline of Bitcoin prices, and realization of gains on disposal of Bitcoin during the year.

Speaker #2: Two additional items also impacted year-over-year comparability. First, we saw a loss of $68 million reflecting changes in our derivative assets and liabilities. Second, 2025 impairment charges were $25 million higher than in 2024.

Jonathan Mir: Second, 2025 impairment charges were $25 million higher than in 2024. For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth.

Speaker #2: For the year, our adjusted EBITDA was $29 million compared to $31 million in 2024. Turning to slide 11. 2025 was a deliberate year of balance sheet optimization and improvement, providing the foundation for our next phase of growth.

Jonathan Mir: We successfully issued an oversubscribed $588 million convertible offering, significantly expanding our liquidity. In February, we repaid the Macquarie debt facility, eliminating legacy debt, simplifying our capital structure, and freeing the company from covenants. Each of these supports the pursuit of our HPC infrastructure strategy. The Macquarie facility had been originally used to accelerate development at Panther Creek, funding critical project activities, including long lead time item procurement and substation work. Retiring the facility was a strategic decision, strengthens the balance sheet, and gives us the flexibility to secure more cost-effective financing at either the parent or project level.

Speaker #2: We successfully issued an oversubscribed $588 million convertible offering, significantly expanding our liquidity. And in February, we repaid the McCrory debt facility, eliminating legacy debt, simplifying our capital structure, and freeing the company from covenants.

Speaker #2: Each of these supports the pursuit of our HPC infrastructure strategy. The McCrory facility had been originally used to accelerate development at Panther Creek. Funding critical project activities, including long lead time item procurement and substation work.

Jonathan Mir: The Macquarie facility had been originally used to accelerate development at Panther Creek, funding critical project activities, including long lead time item procurement and substation work. Retiring the facility was a strategic decision, strengthens the balance sheet, and gives us the flexibility to secure more cost-effective financing at either the parent or project level.

Speaker #2: Retiring the facility was a strategic decision, strengthens the balance sheet, and gives us the flexibility to secure more cost-effective financing at either the parent or project level.

Jonathan Mir: Our current cash position of $520 million provides the runway to advance Panther Creek, Sharon, and Moses Lake through lease execution without accessing capital markets, though we may do so if attractive opportunities arise that improve our ability to deliver the best possible long-term risk-adjusted shareholder returns. Macquarie was an excellent partner, and we appreciate their support so early in our pivot to HPC AI infrastructure. Turning to slide 12. As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles, capital allocation, capital formation, and capital structure. Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital.

Speaker #2: Our current cash position of $520 million provides the runway to advance Panther Creek, Sharon, and Moses Lake through lease execution without access to capital markets, though we may do so if attractive opportunities arise that improve our ability to deliver the best possible long-term, risk-adjusted shareholder returns.

Speaker #2: McCrory was an excellent partner, and we appreciate their support so early in our pivot to HPC AI infrastructure. Turning to slide 12. As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles: capital allocation, capital formation, and capital structure.

Jonathan Mir: As we pivot to commercialization of our development sites, we have a clear financial strategy based on three principles, capital allocation, capital formation, and capital structure. Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital.

Speaker #2: Taken together, they are designed to deliver the best possible long-term risk-adjusted shareholder returns. First, capital allocation. We deploy capital into projects where the earnings potential exceeds their weighted average cost of capital.

Jonathan Mir: We rotate capital from businesses that are non-core or earning less than optimal returns and deploy the capital into higher return investments. Second, capital formation. Our financing strategy is designed to fund our very large growth opportunities while maintaining the liquidity needed for a stable base of operations. We will be opportunistic in our financing execution. We will fund construction of our data center projects using project or parent-level debt and project or parent-level equity or equity-linked offerings. We're taking a disciplined approach and at this time are well-capitalized to actively commercialize and execute leases across Panther Creek, Sharon, and Washington. Third, capital structure. Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support growth.

Speaker #2: We rotate capital from businesses that are non-core or earning less than optimal returns, and deploy the capital into higher-return investments. Second, capital formation. Our financing strategy is designed to fund our very large growth opportunities while maintaining the liquidity needed for a stable base of operations.

Speaker #2: We will be opportunistic in our financing execution. We will fund construction of our data center projects using project- or parent-level debt, and project- or parent-level equity or equity-linked offerings.

Jonathan Mir: We're taking a disciplined approach and at this time are well-capitalized to actively commercialize and execute leases across Panther Creek, Sharon, and Washington. Third, capital structure. Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support growth.

Speaker #2: We're taking a disciplined approach and, at this time, are well-capitalized to actively commercialize and execute leases across Panther Creek, Sharon, and Washington. Third, capital structure.

Speaker #2: Our capital structure is designed to capture the best possible long-term risk-adjusted shareholder returns while also retaining overall corporate flexibility and support of growth. Our objective is to operate with a deliberate liquidity strategy in order to enable clear-headed, commercial decisions and capital allocation decisions, rather than having liquidity drive timelines.

Jonathan Mir: Our objective is to operate with a deliberate liquidity strategy in order to enable clear-headed commercial decisions and capital allocation decisions rather than having liquidity drive timelines. Stepping back, our roadmap is clear. We are building a regionally focused, high-growth HPC AI infrastructure platform grounded in disciplined capital allocation, a strengthened balance sheet, and a development cadence that maximizes returns and minimizes risk. We're funded through the key de-risking stages, permitting, and leasing across Moses Lake, Sharon, and Panther Creek. We're entering 2026 with momentum, optionality, and a balance sheet engineered for growth. We have the right people, assets, liquidity, and strategy, and we're well-positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks.

Speaker #2: Stepping back, our roadmap is clear. We are building a regionally focused, high-growth HPC AI infrastructure platform, grounded in disciplined capital allocation, a strengthened balance sheet, and a development cadence that maximizes returns and minimizes risk.

Jonathan Mir: We're funded through the key de-risking stages, permitting, and leasing across Moses Lake, Sharon, and Panther Creek. We're entering 2026 with momentum, optionality, and a balance sheet engineered for growth. We have the right people, assets, liquidity, and strategy, and we're well-positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks.

Speaker #2: We're funded through the key de-risking stages: permitting and leasing, across Moses Lake, Sharon, and Panther Creek. And we're entering 2026 with momentum, optionality, and a balance sheet engineered for growth.

Speaker #2: We have the right people, assets, liquidity, and strategy, and we're well-positioned to capture for our shareholders the long-term value potential we have today. With that, I'd like to return the call to Ben for closing remarks.

Ben Gagnon: Thanks, Jonathan. A little over a year ago, as our team began actively integrating AI into both our business and our daily lives, we came to a realization. This isn't just another technology cycle. It's a paradigm shift, more comparable to the Industrial Revolution than the Internet Revolution. The fundamental measure of productivity capacity is no longer calories or joules, but tokens. This became strikingly clear two weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks like cleaning and image generation to extraordinarily complex applications, including protein folding, physics simulations, and even brain surgery. Walking the conference floor, speaking to the attendees, one thing was unmistakable. We've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities, and companies to accomplish exponentially more.

Speaker #1: Thanks, Jonathan. A little over a year ago, as our team began actively integrating AI into both our business and our daily lives, we came to a realization.

Speaker #1: This isn't just another technology cycle. It's a paradigm shift, more comparable to the industrial revolution than the internet revolution. The fundamental measure of productivity capacity is no longer calories or joules.

Ben Gagnon: This became strikingly clear two weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks like cleaning and image generation to extraordinarily complex applications, including protein folding, physics simulations, and even brain surgery.

Speaker #1: But tokens. This became strikingly clear two weeks ago at NVIDIA GTC, where I witnessed hundreds of companies applying AI to everything from straightforward tasks like cleaning an image generation to extraordinarily complex applications, including protein folding, physics simulations, and even brain surgery.

Ben Gagnon: Walking the conference floor, speaking to the attendees, one thing was unmistakable. We've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities, and companies to accomplish exponentially more.

Speaker #1: Walking the conference floor, speaking to the attendees, one thing was unmistakable: we've only begun to scratch the surface of AI's potential. Yet even in these early days, AI is already empowering individuals, communities, and companies to accomplish exponentially more.

Ben Gagnon: We're witnessing Jevons paradox unfold simultaneously across every industry, thanks to AI, where improved efficiency can paradoxically drive higher, not lower, demand. It has literally never cost less to transform an idea into an action, a product, an image, a refined concept, a service, or countless other outputs. The possibilities are truly limitless. While no one can predict exactly how AI will reshape our future, one certainty remains. It will require enormous amounts of power. Our 2.2GW of capacity and strategically positioned land across Pennsylvania, Washington, and Quebec sit directly in the path of this transformation, and we intend to capitalize on that opportunity for our shareholders, and we look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead.

Speaker #1: We're witnessing Jevons Paradox unfold simultaneously across every industry thanks to AI. We're improved efficiency, can paradoxically drive higher, not lower, demand. It is literally never cost less to transform an idea into an action, a product, an image, a refined concept, a service, or countless other outputs.

Speaker #1: The possibilities are truly limitless. And while no one can predict exactly how AI will reshape our future, one certainty remains: it will require enormous amounts of power.

Ben Gagnon: Our 2.2GW of capacity and strategically positioned land across Pennsylvania, Washington, and Quebec sit directly in the path of this transformation, and we intend to capitalize on that opportunity for our shareholders, and we look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead.

Speaker #1: Our 2.2 gigawatts of capacity and strategically positioned land across Pennsylvania, Washington, and Quebec sit directly in the path of this transformation. And we intend to capitalize on that opportunity for our shareholders.

Speaker #1: And we look forward to the opportunities ahead. With that, I would like to open the call to Q&A. Operator, please go ahead.

Speaker #3: Thank you. If you would like to ask a question, please press star one one. If your question has been answered and you'd like to remove yourself from the queue, please press star one one again.

Speaker #3: One moment for our first question. And our first question comes from Mike Grundle with Northland. Your line is open.

Operator: Our first question comes from Mike Grondahl with Northland. Your line is open.

Mike Grondahl: Hey, thanks, guys. First question, Ben, you talked about your decision not to go the GPU rental route at Moses Lake, and just the colocation route. Could you talk a little bit about what a couple of the major drivers were that got you to that decision?

Speaker #4: Hey, thanks, guys. First question: Ben, you talked about your decision not to go the GPU rental route at Moses Creek, and just the co-location route.

Speaker #4: Could you talk a little bit about what a couple of the major drivers were that got you to that decision?

Ben Gagnon: Yeah, it's a great question, Mike. You know, when we first started talking about in Q3, we were always evaluating this alongside with colocation. You know, we're trying to maximize the value for shareholders, so we're always going to evaluate multiple different business models at our sites. Because, you know, they have the lowest cost energy and all these other benefits, we thought it would make a lot of sense. As we've continued to have increasing amounts of customer conversations for Washington and other sites, it was just really clear to us that the best opportunity for us is to just remain a pure play infrastructure developer and owner, and let these customers who really want these megawatts lease these megawatts.

Speaker #1: Yeah, it's a great question, Mike. When we first started talking about it in Q3, we were always evaluating this alongside with co-location. And we were trying to maximize we're trying to maximize the value for shareholders.

Speaker #1: So we're always going to evaluate multiple different business models at our sites. And because they had the lowest-cost energy and all these other benefits, we thought it would make a lot of sense.

Ben Gagnon: As we've continued to have increasing amounts of customer conversations for Washington and other sites, it was just really clear to us that the best opportunity for us is to just remain a pure play infrastructure developer and owner, and let these customers who really want these megawatts lease these megawatts.

Speaker #1: But as we've continued to have increasing amounts of customer conversations for Washington and other sites, it was just really clear to us that the best opportunity for us is to just remain a pure-play infrastructure developer and owner.

Speaker #1: And let these customers who really want these megawatts lease these megawatts.

Mike Grondahl: Got it. Maybe secondly, you articulated, I'll say, a philosophy a quarter or two ago about waiting on signing a lease as terms were continuing to improve, you know, kind of implying you were gonna be really patient, and wait on a lease. Could you kind of update how you're thinking about that lease execution strategy and the potential timing around it?

Speaker #4: Got it, got it. And then maybe secondly, you articulated, I'll say, a philosophy a quarter or two ago about waiting and waiting on signing a lease as terms were continuing to improve, kind of implying you were going to be really patient and wait on a lease.

Speaker #4: Could you kind of update how you're thinking about that lease execution strategy, and the potential timing around it?

Ben Gagnon: Yeah. You know, our strategy on lease execution has been consistent. It remains consistent today. You know, our view is that the best way to maximize value for shareholders is to get the best terms in a lease, because that's gonna be what is gonna be driving our NOI and our multiple. When we're looking to sign 10- to 15-year agreements, you know, it's really important for us to take the, you know, maybe a little bit more time than investors may want us to in order to get better terms for longer. When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk. We've spoken to this, you know, multiple times over the last couple of months.

Speaker #1: Yeah. Our strategy on lease execution has been consistent. It remains consistent today. Our view is that the best way to maximize value for shareholders is to get the best terms in a lease, because that's going to be what is driving our NOI and our multiple.

Ben Gagnon: When we're looking to sign 10- to 15-year agreements, you know, it's really important for us to take the, you know, maybe a little bit more time than investors may want us to in order to get better terms for longer. When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk. We've spoken to this, you know, multiple times over the last couple of months.

Speaker #1: And so, when we're looking to sign 10- to 15-year agreements, it's really important for us to take maybe a little bit more time than investors may want us to, in order to get better terms for longer.

Speaker #1: When it looks at what is really driving the value in these lease economics, one of the biggest elements is risk. And we've spoken to this multiple times over the last couple of months.

Ben Gagnon: The biggest risk for most of these guys is over permitting. It's possible to go out there and, you know, have conversations and get a lot of interest. In some cases you could even sign a lease prior to getting permits. All of that risk is gonna be priced into the agreement. You're gonna be locked into it for 10 to 15 years, and that's gonna negatively impact, you know, the long-term value that we're creating for shareholders. Our strategy has been incredibly consistent.

Speaker #1: And the biggest risk for most of these multiples is to go out there and have conversations and get a lot of interest, and in some cases, you could even sign a lease prior to getting permits.

Speaker #1: But all of that risk is going to be priced into the agreement. You're going to be locked into it for 10 to 15 years.

Speaker #1: And that's going to negatively impact the long-term value that we're creating for shareholders. So our strategy has been incredibly consistent. And the benefit for us is that we are operating in high-demand markets with high barriers to entry.

Ben Gagnon: The benefit for us is that, you know, we are operating in high demand markets with high barrier to entry, so it takes a little bit longer to get permits going in Pennsylvania or in Washington than it does in Texas, which is the easiest market in the United States for that. We believe that drives a lot of extra value because it's way more scarce, it's way harder to acquire, and there's just not as much optionality.

Speaker #1: So it takes a little bit longer to get permits going in Pennsylvania or in Washington than it does in Texas, which is the easiest market in the United States for that.

Speaker #1: But we believe that drives a lot of extra value because it's way more scarce, it's way harder to acquire, and there's just not as much optionality.

Mike Grondahl: Got it. Well, thanks. Hey, good luck in 2026.

Ben Gagnon: Thanks, Mike.

Speaker #4: Got it. Well, thanks. And hey, good luck in '26.

Operator: Thank you. Our next question comes from Brett Knoblauch with Cantor Fitzgerald. Your line is open.

Speaker #1: Thanks, Mike.

Speaker #3: Thank you. Our next question comes from Brett Noblock with Cantor Fitzgerald. Your line is open.

Brett Knoblauch: Hi, guys. Thanks for taking my questions. Maybe to start, could you maybe just go into detail on what permits at what sites you guys are waiting to receive?

Speaker #5: Hi, guys. Thanks for taking my questions. Maybe to start, could you maybe just go into detail on what permits at what sites you guys are waiting to receive?

Ben Gagnon: You know, permits is a complicated process, and we're getting permits across multiple sites in multiple jurisdictions, so they all have different rules, different regulations, different timelines, different reviews, different, you know, authorities. You know, it's far too much detail to get into exactly what permits are remaining on all the different sites. But we are continuing to make good progress. Kind of, you know, we're looking at the visibility over the next couple of months, and with what we've had so far with the community engagement success that we've had so far, we think that, you know, in the coming months, sometime around the mid to late summertime, we should be achieving the full permitted status across at least one, if not all of the sites.

Speaker #1: So, permits is a complicated process. And we are getting permits across multiple sites in multiple jurisdictions, so they all have different rules, different regulations, different timelines, different reviews, different authorities.

Speaker #1: So, it's far too much detail to get into exactly what permits are remaining on all the different sites. But we are continuing to make good progress.

Ben Gagnon: Kind of, you know, we're looking at the visibility over the next couple of months, and with what we've had so far with the community engagement success that we've had so far, we think that, you know, in the coming months, sometime around the mid to late summertime, we should be achieving the full permitted status across at least one, if not all of the sites.

Speaker #1: You kind of—we're looking at the visibility over the next couple of months. And with what we've had so far, with the community engagement success that we've had so far, we think that in the coming months, sometime around the mid to late summertime, we should be achieving the full permitted status across at least one, if not all, of the sites.

Brett Knoblauch: Perfect. Maybe just on the leasing environment across the different sites that you guys have. I guess we were under the impression that maybe Sharon would be, you know, first to go, given it's relatively further along. Is that still how you guys are thinking about it? In the presentation, when you guys kind of list, you know, the power pipeline and roadmap, how much of that is from generation on site that you guys are looking into? Do you have any update on where you guys are with respect to, you know, sourcing that generation?

Speaker #5: Perfect. And then maybe just on the leasing environment across the different sites that you guys have—I guess we were under the impression that maybe Sharon would be first to go, given it’s relatively further along.

Speaker #5: Is that still how you guys are thinking about it? And then in the presentation when you guys kind of list the power pipeline and roadmap, how much of that is from generation on-site that you guys are looking into?

Speaker #5: And do you have any update on where you guys are with respect to sourcing that generation?

Ben Gagnon: Yeah, sure. To answer the second part of your question first, you know, all the power that we're talking about developing for our HPC and AI data centers right now is grid connected. The two operating power plants that we have at Scrubgrass and Panther Creek, currently that math is not in those charts for the secured capacity or the site development plans. But in Scrubgrass particular, we are working to expand the generation capacity there with natural gas. We've been working to tap into the Tenaska natural gas pipeline. We're achieving, you know, pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting, you know, a clear path forward on the engineering plans.

Speaker #1: Yeah, sure. So, to answer the second part of your question first, all the power that we're talking about developing for our HPC and AI data centers right now is grid-connected.

Speaker #1: So the two operating power plants that we have at Scrubgrass and Panther Creek currently that math is not in those charts for the secured capacity or the site development plants.

Speaker #1: But in Scrubgrass in particular, we are working to expand the generation capacity there with natural gas. So we've been working to tap into the Tennessee Natural Gas Pipeline.

Ben Gagnon: We've been working to tap into the Tenaska natural gas pipeline. We're achieving, you know, pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting, you know, a clear path forward on the engineering plans.

Speaker #1: We're achieving pretty good results there with the engineering firms. There's still probably another month or two to go before we're getting a clear path forward on the engineering plants.

Ben Gagnon: You know, Scrub Grass is our more of our pipeline site, and so that power generation opportunity is more of a 2028 and 2029 timeline. Everything else is grid connected, it's secured today, or it's currently active. Sorry, Brett, I'm blanking on the first part of your question. Would you mind repeating it?

Speaker #1: But Scrubgrass is our more of our pipeline site. And so those that power generation opportunity is more of a 2028 and 2029 timeline. Everything else is grid-connected.

Speaker #1: It's secured today, or it's currently active. And sorry, Brett, I'm blanking on the first part of your question. Would you mind repeating it?

Brett Knoblauch: Yeah, just on maybe the cadence of which sites are maybe quicker to go. Yeah.

Speaker #5: Yeah. Just on maybe the cadence of which sites are maybe quicker to go. Yeah.

Ben Gagnon: Yeah. Really that's going to be driven by success on permitting timelines and the customers. All three of the sites, Moses Lake, Sharon, and Panther Creek, are all actively in our go-to-market right now. Every single one of those has customers engaged under MNDA. They have for quite some time. We're continuing to push forward on those conversations and those negotiations. Really, I think what investors should think about with regards to permits. Permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation. We have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem. The first site to get leased is likely to be the first site to be permitted.

Speaker #1: Yeah. So really, that's going to be driven by success on permitting timelines and the customers. So all three of the sites Moses Lake, Sharon, and Panther Creek are all actively in our go-to-market right now.

Speaker #1: Every single one of those has customers engaged under MNDA, and they have for quite some time. And so we're continuing to push forward on those conversations and those negotiations.

Ben Gagnon: Really, I think what investors should think about with regards to permits. Permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation. We have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem. The first site to get leased is likely to be the first site to be permitted.

Speaker #1: Really, I think what investors should think about with regards to permits, permits are more of a closing condition to a lease, right? They're really not a starting condition to a negotiation.

Speaker #1: So we have these conversations and these negotiations simultaneously while we're working towards permitting. As permitting gets closer and closer, the negotiations will also get closer and closer in tandem.

Speaker #1: And the first site to get leased is likely to be the first site to be permitted.

Brett Knoblauch: Awesome. Really appreciate it. Thank you, guys.

Ben Gagnon: Thanks, Brett.

Speaker #5: Awesome. Really appreciate it. Thank you, guys.

Operator: Thank you. Our next question comes from Stephen Glagola with KBW. Your line is open.

Speaker #1: Thanks, Brett.

Speaker #3: Thank you. Our next question comes from Steven Glagola with KBW. Your line is open.

Stephen Glagola: Hey, thanks for the question. Just on that last point, if you could clarify the sequencing here between, like, notice to proceed and lease execution. In other words, like, can you pre-sign leases contingent on notice to proceed, or is, like, notice to proceed required before any major customer would commit to a lease?

Speaker #4: Hey, thanks for the question. Just on that last point, if you could clarify, the sequencing here between notice to proceed and lease execution, so in other words, can you pre-sign leases contingent on notice to proceed?

Speaker #4: Or is notice to proceed required before any major customer would commit to a lease?

Ben Gagnon: For a customer to commit to binding, in our view, they're going to want NTP, and that's based on the number of conversations that we, you know, are continuing to have. There probably are some customers who would be interested to sign prior to NTP, but those aren't the investment-grade counterparties that we're really seeking to engage with.

Speaker #1: For a customer to commit to binding in our view, they're going to want NTP. And that's based on the number of conversations that we continuing to have.

Speaker #1: There probably are some customers who would be interested to sign prior to NTP. But those aren't the investment-grade counterparties that we're really seeking to engage with.

Stephen Glagola: Okay. Thank you. Just one more. You know, how are you thinking about, like, Rubin hardware availability in 2026 and, like, early 2027, and to what extent could that variability in supply influence the timing, you know, lease discussions at your sites? Thank you, Ben.

Speaker #4: Okay, thank you. And then just one more: How are you thinking about Vera Rubin hardware availability in ’26 and early ’27? And to what extent could that variability in supply influence the timing of lease discussions at your sites?

Ben Gagnon: Yes, it's a good question, Stephen. You know, we've been talking about Rubin, I think, since Q3 call, because all of our sites, you know, are basically coming online in 2027, so we're trying to make sure that they are, designed for the highest level of equipment that's coming out in 2027 and 2028, which is the Rubins. In terms of supply, we haven't seen any, you know, impact so far. I understand, you know, there's always geopolitical uncertainty in the world, that may impact those supply chains. But given that energy is such a huge bottleneck, and it's always been the huge bottleneck on the growth, I don't think that there's going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs.

Speaker #4: Thank you, Ben.

Speaker #1: Yeah, that's a good question, Steven. We've been talking about Vera Rubin, I think, since Q3 call. Because all of our sites are basically coming online in 2027.

Speaker #1: So we're trying to make sure that they are designed for the highest level of equipment that's coming out in '27 and '28, which is the Vera Rubins.

Ben Gagnon: In terms of supply, we haven't seen any, you know, impact so far. I understand, you know, there's always geopolitical uncertainty in the world, that may impact those supply chains. But given that energy is such a huge bottleneck, and it's always been the huge bottleneck on the growth, I don't think that there's going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs.

Speaker #1: In terms of supply, we haven't seen any impact so far. I understand there's always geopolitical uncertainty in the world. That may impact those supply chains.

Speaker #1: But given that energy is such a huge bottleneck—and it's always been the huge bottleneck on growth—I don't think there's going to be a geopolitical situation that's going to make the bottleneck change from energy over to GPUs.

Ben Gagnon: We don't have any expectation right now that that's going to have any impact on leasing or demand for sites because power is still such an extreme bottleneck. It's hard to imagine what's going to overshadow that geopolitically.

Speaker #1: So we don't have any expectation right now that that's going to have any impact. On leasing or demand for sites. Because power is still such an extreme bottleneck, it's hard to imagine what's going to overshadow that geopolitically.

Stephen Glagola: Great. Thanks, Ben.

Ben Gagnon: Thanks, Brett or Stephen.

Operator: Thank you. Our next question comes from Michael Donovan with Compass Point. Your line is open.

Speaker #4: Great. Thanks, Ben.

Speaker #1: Thanks, Brett. Or Steven.

Speaker #3: Thank you. Our next question comes from Michael Donovan with Compass Point. Your line is open.

Michael Donovan: Hi, thanks for taking my question, and congrats on the progress. Can you provide an update on ESA progress, specifically Panther Creek's ISA to ESA conversion?

Speaker #6: Hi. Thanks for taking my question. Congrats on the progress. Can you provide an update on ESA progress, specifically Panther Creek's ISA to ESA conversion?

Ben Gagnon: Yeah. That's a great question, Mike. You know, as investors probably know, we have 350MW secured ESA with PPL. In addition to that, we also have an ISA that enables us to draw down approximately 60MW from the grid, and that's associated with the existing transmission line and substation for the power plant that we currently have operating. In order to get that converted over, it's really more of a regulatory matter. It's hard to put an exact timeline as to, you know, when those stamps are gonna be received. You know, there's no infrastructure that needs to be built. There's no CapEx that needs to be spent.

Speaker #1: Yeah, so that's a great question, Mike. As investors probably know, we have a 350-megawatt secured ESA with PPL. But in addition to that, we also have an ISA that enables us to draw down approximately 60 megawatts from the grid.

Speaker #1: And that's associated with the existing transmission line and substation for the power plant that we currently have operating. In order to get that converted over, it's really more of a regulatory matter.

Ben Gagnon: In order to get that converted over, it's really more of a regulatory matter. It's hard to put an exact timeline as to, you know, when those stamps are gonna be received. You know, there's no infrastructure that needs to be built. There's no CapEx that needs to be spent.

Speaker #1: And so it's hard to put an exact timeline as to when those stamps are going to be received. But there's no infrastructure that needs to be built.

Ben Gagnon: Really, it's just a matter of getting the regulatory approval to convert a non-firm service into a firm service, and that would enable us to increase our capacity beyond 350MW to what we probably expect is gonna be maybe 400MW or possibly slightly more. We expect this is gonna happen this year, but it's hard to put an exact timeline on it given it's a regulatory matter.

Speaker #1: There's no CapEx that needs to be spent. Really, it's just a matter of getting the regulatory approval to convert a non-firm service into a firm service.

Speaker #1: And that would enable us to increase our capacity beyond 350 megawatts to what we probably expect is going to be maybe 400 megawatts, or possibly slightly more.

Speaker #1: We expect this is going to happen this year, but it's hard to put an exact timeline on it given it's a regulatory matter.

Michael Donovan: Great. I appreciate that, Ben.

Ben Gagnon: Thanks, Mike.

Operator: Thank you. Our next question comes from Brian Kinstlinger with AGP. Your line is open.

Speaker #4: Great. Appreciate that, Ben.

Speaker #1: Thanks, Mike.

Speaker #3: Thank you. Our next question comes from Brian Kenslinger with AGP. Your line is open.

Brian Kinstlinger: Great. Thanks. Last quarter, Ben, you communicated you expected the GPU-as-a-service at Moses Lake site would be targeted for, I believe, Q1 for go live. How does shifting to colocation change the timing, if at all? My second question is, can you talk about also how the global memory shortage is impacting your site development or changing your near-term needs or planning for lead times?

Speaker #5: Great, thanks. Last quarter, Ben, you communicated you expected the GPU-as-a-Service at the Moses Lake site would be targeted for, I believe, the first quarter for go-live.

Speaker #5: How does shifting to colocation change the timing if at all? And my second question is, can you talk about also how the global memory shortage is impacting your site development or changing your near-term needs or planning for lead times?

Ben Gagnon: Yeah. Two parts to that question. In terms of switching from GPU-as-a-service to colocation, just changing the business model doesn't really impact the development timelines. We don't really see any delay there associated with changing from GPU-as-a-service just to colocation. Really, it's just a matter of how we want to allocate our capital and how we want to focus the business. When it comes to the memory storage, you know, as a pure-play infrastructure developer and owner, that really is not coming into our calculus very much. Mostly that's a customer situation for them to resolve with their own supply chain, because we're not the ones investing in the GPUs and the compute and the servers.

Speaker #1: Yeah. So two parts to that question. In terms of switching from a GPU as a service to colocation, just changing the business model doesn't really impact the development timelines.

Speaker #1: So we don't really see any delay there associated with changing from GPU as a service. Just to colocation. Really, it's just a matter of how we want to allocate our capital and how we want to focus the business.

Ben Gagnon: When it comes to the memory storage, you know, as a pure-play infrastructure developer and owner, that really is not coming into our calculus very much. Mostly that's a customer situation for them to resolve with their own supply chain, because we're not the ones investing in the GPUs and the compute and the servers.

Speaker #1: When it comes to the memory shortage, as an impure play infrastructure developer and owner, that really is not coming into our calculus very much.

Speaker #1: Mostly, that's a customer situation for them to resolve with their own supply chain. Because we're not the ones investing in the GPUs and the compute and the servers.

Brian Kinstlinger: Great. Thank you.

Operator: Thank you. Our next question comes from Martin Toner with ATB Capital Markets. Your line is open.

Speaker #5: Great. Thank you.

Speaker #3: Thank you. Our next question comes from Martin Toner with ATB Coremark Capital Markets. Your line is open.

Martin Toner: Good morning. Question. Can you kind of elaborate on to increase capacity beyond? Can you kind of give us some timelines, thoughts there?

Speaker #6: Good morning. Congrats on the progress, thank you. Question. Can you provide a collaborate on? Just to increase capacity beyond? Can you kind of give us some timeline thoughts there?

Ben Gagnon: I'm gonna repeat the question because it was a little quiet, just in case nobody else or other people had difficulty hearing. I believe the question was: can you give some timelines as to how we might be able to expand Panther Creek to 500MW and beyond? In order for us to move beyond the 350MW ESA that we have secured, there's really two sources for expansion. The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago. That's really a regulatory matter that we expect to resolve sometime this year. It could be tomorrow, it could be, you know, a few months from now.

Speaker #1: So I'm going to repeat the question because it was a little quiet just in case nobody else or other people had difficulty hearing. I believe the question was, can you give some timelines as to how we might be able to expand Panther Creek to 500 megawatts and beyond?

Speaker #1: So in order for us to move beyond the 350 megawatt ESA that we have secured, there's really two sources for expansion. The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago.

Ben Gagnon: The first is converting over that ISA from non-firm service to firm service that I just spoke to a minute ago. That's really a regulatory matter that we expect to resolve sometime this year. It could be tomorrow, it could be, you know, a few months from now.

Speaker #1: And that's really a regulatory matter that we expect to resolve sometime this year. It could be tomorrow; it could be a few months from now.

Ben Gagnon: When it comes to expanding beyond that, what we have to do with that is we have to actually have new power applications. The good thing here is that the utilities are actually looking to invest in new generation in the area. In this particular instance, we weren't actually applying for new power. We actually had the utility call us and ask us how much more power we could take on site. You know, given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive, and it's a pretty unusual one in the industry. They're looking to scale up generation capacity in the area, specifically to service our site at greater capacity.

Speaker #1: And then, when it comes to expanding beyond that, what we have to do with that is, we have to actually have new power applications.

Speaker #1: The good thing here is that the utilities are actually looking to invest in new generation in the area. So in this particular instance, and we weren't actually applying for new power.

Ben Gagnon: You know, given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive, and it's a pretty unusual one in the industry. They're looking to scale up generation capacity in the area, specifically to service our site at greater capacity.

Speaker #1: We actually had the utility call us and ask us how much more power we could take on site. Given the bottleneck constraint on power, that was obviously a very welcome call over here at Bitfarms to receive.

Speaker #1: And it's a pretty unusual one in the industry. But they're looking to scale up generation capacity in the area—specifically the service, our site, at greater capacity.

Ben Gagnon: This is probably going to be 2 to 3 years timeline because there's a lot of process involved with spinning up new generation and building those new transmission lines. For a lot of our customers, what they really want is, you know, the fastest pathway to energization and a clear path to scale over multiple years. This really lines up with what the hyperscalers and what the neo clouds are searching for.

Speaker #1: So this is probably going to be a two- to three-year timeline, because there's a lot of process involved with spinning up new generation and building those new transmission lines.

Speaker #1: But for a lot of our customers, what they really want is the fastest pathway to energization and a clear path to scale over multiple years.

Speaker #1: And so this really lines up with what the hyperscalers and what the neoclouds are searching for.

Martin Toner: That's great. Thanks very much. Hopefully, you can hear me better. Can you clarify when you expect to sign your first lease?

Speaker #4: That's great, thanks very much. Hopefully, you can hear me better. Can you clarify when you expect to sign your first lease?

Ben Gagnon: You know, I can't get into a specific timeline, but in terms of milestones, as I spoke to earlier, it's really about clearing NTP as kind of the last closing condition or last milestone for us to sign a lease. I think for the investors and the analysts on the call, the important thing to keep track of, especially over the next coming months, is the continued progress that we have towards NTP. Because once NTP is cleared, that's basically the last thing standing between us and a signed agreement.

Speaker #1: So I can't get into a specific timeline, but in terms of milestones, as I spoke to earlier, it's really about clearing NTP as kind of the last closing condition or last milestone for us to sign a lease.

Speaker #1: So I think for the investors in the analysts on the call, the important thing to keep track of, especially over the next coming months, is the continued progress that we have towards NTP.

Speaker #1: Because once NTP is cleared, that's basically the last thing standing between us and a signed agreement.

Martin Toner: Got it. Great. Thanks. Last one from me. Can you talk a little bit about why you mining exahash in Q4 was at the level that it was at?

Speaker #4: Got it. Great, thanks. Last one from me. Can you talk a little bit about why mining exahash in Q4 was at the level that it was at?

Ben Gagnon: We continue to scale back our mining exposure as we continue to focus on our US HPC infrastructure investments. You know, we haven't made any investments into Bitcoin mining. We're not spending any money on upgrades or new miners, and we're actively working to scale down the fleet and spin off assets like we have in Paraguay that are not suitable for conversion. Investors should continue to expect our hash rate to continue to trickle down over 2026 as we continue to execute on this transition to HPC and AI.

Speaker #1: So, we continue to scale back our mining exposure as we focus on our U.S. HPC infrastructure investments. We haven't made any investments into Bitcoin mining.

Speaker #1: We're not spending any money on upgrades or new miners. And we're actively working to scale down the fleet and actively working to spin off assets like we have in Paraguay that are not suitable for conversion.

Speaker #1: So investors should continue to expect our hash rate to continue to trickle down over 2026 as we continue to. Execute on this transition to HPC and AI.

Martin Toner: Thank you very much, Ben.

Ben Gagnon: Thanks, Martin.

Operator: Thank you. Our next question comes from Mike Colonnese with H.C. Wainwright & Co. Your line is open.

Speaker #4: Thank you very much, Ben.

Speaker #1: Thanks, Martin.

Speaker #3: Thank you. Our next question comes from Mike Colonies with HC Wainwright and Company. Your line is open.

Mike Colonnese: Hi. Good morning, Ben and team. Thank you for taking my question this morning. Ben, I'm just curious, after securing the remaining permits across the three sites, which sounds like will likely take place in the coming months here, what does the timeline look like from a data center construction and delivery standpoint? It sounds like you're pretty optimistic that revenue generation could commence as soon as next year, but any additional color here would be helpful.

Speaker #7: Hi. Good morning, Ben and team. Thanks for taking my question this morning. So, Ben, I'm just curious. After securing the remaining permits across the three sites, which sounds like will likely take place in the coming months here, what does the timeline look like from a data center construction and delivery standpoint?

Speaker #7: It sounds like you’re pretty optimistic that revenue generation could commence as soon as next year. But any additional color here would be helpful.

Ben Gagnon: Yeah, I mean, really, this is the year of execution, and 2027 is the year of delivery. At all three of our projects that we talked about today, Panther Creek, Sharon, and Washington, we all expect them to come online and start delivering megawatts and start generating revenue to customers in 2027. We'll continue to provide updates as we go along. I think once we have cleared NTP and we have signed leases, there's gonna be a lot clearer visibility that we can provide to investors for each specific project and their specific timelines.

Speaker #1: Yeah. I mean, really, this is the year of execution, and 2027 is the year of delivery. And so, at all three of our projects that we talked about today—Panther Creek, Sharon, and Washington—we all expect them to come online and start delivering megawatts and start generating revenue to customers in 2027.

Speaker #1: We'll continue to provide updates as we go along. And I think once we have cleared NTP and we have signed leases, there's going to be a lot clearer visibility that we can provide to investors for each specific project.

Mike Colonnese: Got it. Thanks for that. Back to Bitcoin mining operations. It sounds like you're progressively gonna be scaling back hash rate as we bring some of the HPCI data centers online. I guess what's the best way to think about, you know, hash coming offline and kind of flowing through your operating results over the near term here?

Speaker #1: And there's specific timelines.

Speaker #7: Got it. Thanks for that. And then, back to Bitcoin mining operations—it sounds like you're progressively going to be scaling back hash rate as you bring some of the HPC AI data centers online.

Speaker #7: I guess, what's the best way to think about hash coming offline and kind of flowing through your operating results over the near term here?

Ben Gagnon: Well, I'll speak to it at a high level, and then maybe I'll pass it off to Jonathan for some further clarity. You know, right now the Bitcoin mining remains profitable, but it's not very, it's marginal. It's still contributing to the business, but really it's not the focus of the business. It's not where we're investing our time. It's not where we're investing our efforts. Given that we have been so successful last year in raising capital and strengthening our balance sheet, it's really not super impactful for the developments that we have this year, the operations or the CapEx. We'll just continue to scale that down, trying to maximize value in the disciplined exit.

Speaker #1: Well, I'll speak to it at a high level and then maybe I'll pass it off to Jonathan for some further clarity. But right now, the Bitcoin mining remains profitable, but it's not very it's marginal.

Ben Gagnon: It's not where we're investing our efforts. Given that we have been so successful last year in raising capital and strengthening our balance sheet, it's really not super impactful for the developments that we have this year, the operations or the CapEx. We'll just continue to scale that down, trying to maximize value in the disciplined exit.

Speaker #1: So it's still contributing to the business. But really, it's not the focus of the business. It's not where we're investing our time. It's not where we're investing our efforts.

Speaker #1: And given that we have been so successful last year in raising capital and strengthening our balance sheet, it's really not super impactful for the development that we have this year, the operations, or the CapEx.

Ben Gagnon: You know, if it makes more sense to maybe sell some miners a little bit earlier than we might need to in order to begin construction, we'll evaluate that as we always do to maximize value for our shareholders. Really we kind of see this as a pretty minor element of our balance sheet and a minor element of the financial plan for this year. Jonathan, do you want to add anything further?

Speaker #1: So we'll just continue to scale that down, trying to maximize value in the disciplined exit. If it makes more sense to maybe sell some miners a little bit earlier, then we might need to in order to begin construction.

Speaker #1: We'll evaluate that as we will always do to maximize value for our shareholders. But really, we kind of see this as a pretty minor element of our balance sheet and a minor element of the financial plan for this year.

Jonathan Mir: Only that when we think about our liquidity going forward, the strategic objective is to ensure we are well capitalized through the lease process and beyond, without the need to raise any new capital in the markets. That takes into account the current state of Bitcoin mining operations. It's not assuming any improvement in the economics there. Our plan is built on conservative assumptions around the status of the Bitcoin market.

Speaker #1: Jonathan, do you want to add anything further?

Speaker #8: Only that when we think about our liquidity going forward, the strategic objective is to ensure we are well capitalized through the lease process and beyond without the need to raise any new capital in the markets.

Speaker #8: And that takes into account the current state of Bitcoin mining operations. It's not assuming any improvement in the economics there. So our plan is built on conservative assumptions around the status of the Bitcoin market.

Mike Colonnese: Very helpful. Thank you for taking my questions.

Ben Gagnon: Thanks, Mike.

Operator: Thank you. Our next question comes from Nick Giles with B. Riley Securities. Your line is open.

Speaker #7: Very helpful. Thank you for taking my question.

Speaker #1: Thanks, Mike.

Speaker #3: Thank you. Our next question comes from Nick Giles with B-Raleigh Securities. Your line is open.

Nick Giles: Hey, good morning, Keel team. You know, in the interim period where Bitcoin mining operations are wound down, but kind of pre-revenue generation on the HPC side, could the generating assets at Panther Creek and Scrub Grass be utilized in any way, such as the PJM capacity auction?

Speaker #9: Hey, good morning, Kiel team. In the interim period where Bitcoin mining operations are wound down but kind of pre-revenue generation on the HPC side, could the generating assets that Panther Creek and Scrubgrass be utilized in any way, such as the PJM capacity auction?

Ben Gagnon: Those power plants do actually participate in PJM capacity auctions. We've done that for quite some time. We do benefit from the capacity payments that we receive there.

Speaker #1: So those power plants do actually participate in PJM capacity auctions. We've done that for quite some time. And so we do benefit from the capacity payments that we receive there.

Nick Giles: Got it. Okay. Any order of magnitude of what those could be kind of in the 2026 planning year?

Speaker #9: Got it. Okay. And any order of magnitude of what those could be, kind of in the 2026 planning year?

Ben Gagnon: I mean, really we've kind of maxed out on the capacity auction payments. They've set a ceiling, and that's where the capacity auction payments closed.

Speaker #1: So, I mean, really, we've kind of maxed out on the capacity auction payments. They've set a ceiling, and that's where the capacity auction payments closed.

Nick Giles: Got it. Understood. Maybe one for Jonathan. You know, you've made some progress on the capital structure, but just was hoping for any additional comments you might have on what you're looking for in, you know, an initial debt package, how you're seeing terms shift and kind of what tools you'll have at your disposal during construction and kind of post-energization.

Speaker #9: Got it. Understood. Maybe one for Jonathan. You've made some progress on the capital structure, but just was hoping for any additional comments you might have on what you're looking for in an initial debt package.

Speaker #9: How you're seeing terms shift and kind of what tools you'll have at your disposal during construction and kind of post-energization.

Jonathan Mir: Good question. Thanks, Nick. Our basic approach is to compare and contrast our financing options down at the asset level and upstairs at the parent level. Certainly one of the things that we've seen in the market that has caught our attention like everyone else is the tightening of spreads between folks issuing high-yield debt in the market at what seem like, you know, quite attractive levels for investment-grade counterparties or credit wraps, and those converging towards the levels seen in bank-originated classic construction and project financing. Each of those has its own advantages in terms of, you know, simplicity of managing the actual capital once it's raised versus negative carry costs.

Speaker #8: That's a good question. Thanks, Nick. So our basic approach is to compare and contrast our financing options, down at the asset level and upstairs at the parent level.

Speaker #8: And certainly, one of the things that we've seen in the market that has caught our attention, like everyone else, is the tightening of spreads between folks issuing high-yield debt in the market at what seemed like quite attractive levels for strong investment-grade counterparties or credit wraps.

Speaker #8: And those converging towards the level seen in the bank-originated classic construction and project financing. So each of those has its own advantages, in terms of simplicity of managing the actual capital once it's raised versus negative carry costs.

Jonathan Mir: Each of those has its own advantages in terms of, you know, simplicity of managing the actual capital once it's raised versus negative carry costs. As we get closer to a funding point, we'll make a decision as to what seems best for our shareholders in terms of how we decide to finance. Right now, what I would-

Jonathan Mir: As we get closer to a funding point, we'll make a decision as to what seems best for our shareholders in terms of how we decide to finance. Right now, what I would-

Speaker #8: And as we get closer to a funding point, we'll make a decision as to what seems best for our shareholders in terms of how we decide to finance.

Nick Giles: Great. Thanks, guys.

Jonathan Mir: I'm sorry, Nick. I was just gonna say that the markets for our space and for infrastructure generally seem calm right now.

Speaker #8: Right now, what I would say.

Speaker #9: Great. Thanks, guys.

Speaker #8: Oh, I'm sorry, Nick. I was just going to say that the markets for our space and for infrastructure generally seem calm right now.

Nick Giles: Understood.

Operator: Thank you. Our next question comes from Brian Dobson with Clear Street. Your line is open.

Speaker #9: Understood.

Craig Kendy: Hi, it's Craig Kendy in for Brian Dobson. I guess one final one just on the redomiciling to the US. Are there any implications, costs or, you know, structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days? Thanks.

Craig Kennedy: Hi, it's Craig Kendy in for Brian Dobson. I guess one final one just on the redomiciling to the US. Are there any implications, costs or, you know, structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days? Thanks.

Speaker #3: Thank you. Our next question comes from Brian Dobson with ClearStreet. Your line is open.

Speaker #10: Hi, it's Craig Kennedy in for Brian Dobson. I guess one final one, just on the re-dome filing to the U.S. Are there any implications to costs or structural implications in terms of ownership that we should be aware of as you enter this over the next couple of days?

Jonathan Mir: Good morning, Brian. One of the benefits and reasons for the redom is that we will now be eligible for inclusion in indices that require to be a US-domiciled company. For example, we'll be eligible for inclusion in the Russell 1000 and the Russell 3000, as well as for ownership in any other fund who is otherwise limited to the purchase of US securities. We view that as being, you know, quite helpful in terms of moving our shareholder base to one that is institutional and long-term. There are no cost or flexibility implications on our end. We simply see this as a nice path forward with a lot of benefits for our shareholders.

Speaker #10: Thanks.

Speaker #8: Good morning, Brian. One of the benefits and reasons for the re-dom is that we will now be eligible for inclusion in indices that require one to be a US domiciled company.

Speaker #8: So, for example, we'll be eligible for inclusion and we're also 1,000 in the Russell 3,000 as well as for ownership in any other fund who is otherwise limited to the purchase of US securities.

Jonathan Mir: We view that as being, you know, quite helpful in terms of moving our shareholder base to one that is institutional and long-term. There are no cost or flexibility implications on our end. We simply see this as a nice path forward with a lot of benefits for our shareholders.

Speaker #8: We view that as being quite helpful in terms of moving our shareholder base to one that is institutional and long-term. There are no other costs or flexibility implications on our end.

Speaker #8: We simply see this as a nice path forward, with a lot of benefits for our shareholders.

Craig Kendy: Very helpful. Thanks a lot.

Craig Kennedy: Very helpful. Thanks a lot.

Operator: Thank you. Our next question comes from Bill Papanastasiou with Chardan Capital Markets. Your line is open.

Speaker #9: Very helpful. Thanks a lot.

Speaker #3: Thank you. Our next question comes from Bill Papanostasou with Chardon Capital Markets. Your line is open.

Bill Papanastasiou: Yeah, good morning. Thanks for taking my questions, gentlemen. Just wanted to touch on the Washington site and decision to shift towards colo. Can you confirm that this won't have any material impact on the purchase commitment that was entered into November? Or, you know, is the team considering the shift in development allocation to other sites?

Speaker #11: Yeah, good morning. Thanks for taking my questions, gentlemen. I just wanted to touch on the Washington site and the decision to shift towards colo. Can you confirm that this won't have any material impact on the purchase commitment that was entered into in November, or is the team considering the shift and development allocation to other sites?

Jonathan Mir: Thanks, Bill. No impact on the capital commitments and the equipment we've already purchased for the Washington site by changing business models. In fact, yeah, actually, Bill.

Speaker #1: Thanks, Bill. No impact on the capital commitments and the equipment we've already purchased for the Washington site by changing business models. In fact, it actually, Bill, it just helps to reduce the CapEx because we're no longer paying for the compute.

Bill Papanastasiou: Awesome.

Bill Papanastasiou: It just helps to reduce the CapEx because we're no longer paying for the compute.

Jonathan Mir: It just helps to reduce the CapEx because we're no longer paying for the compute.

Bill Papanastasiou: Understood. Thanks. Then, how should we generally be thinking about maintenance CapEx on existing Bitcoin mining sites, as you gradually shift over to AI HPC here?

Speaker #11: Understood. Thanks. And then, how should we generally be thinking about maintenance CapEx on existing Bitcoin mining sites as you gradually shift over to AI HPC here?

Jonathan Mir: We're not making any investments into the Bitcoin mining sites. Basically, we're just continuing to keep them up and running. No further investments are being made in the sites, into new sites, or into new miners.

Speaker #1: We're not making any investments into the Bitcoin mining sites basically. We're just continuing to keep them up and running. And so no further investments are being made in the sites into new sites or into new miners.

Bill Papanastasiou: Great. Appreciate the color. Thank you.

Jonathan Mir: Thank you, Bill.

Operator: Thank you. This concludes the question and answer session. I'd like to turn the call back over to Ben Gagnon for closing remarks.

Speaker #11: Great. Appreciate the comments. Thank you.

Speaker #1: Thank you, Bill.

Speaker #3: Thank you. This concludes the question and answer session. I'd like to turn the call back over to Ben Gagnon for closing remarks.

Ben Gagnon: Thank you very much, everyone, for joining our call today and really look forward to speaking to you next time as Keel Infrastructure. Have a great day.

Speaker #1: Thank you very much, everyone, for joining our call today, and I really look forward to speaking to you next time as Keel Infrastructure. Have a great day.

Operator: Thank you for your participation. This does conclude the program. You may now disconnect.

Q4 2025 Bitfarms Ltd Earnings Call

Request a DemoDemo

KEEL

Keel Infrastructure

Earnings