Bitfarms Ltd. (BITF:CA) Shareholder/Analyst Call Prepared Remarks Transcript

Bitfarms held a Special Meeting of Shareholders; the record date was Feb 13, 2026 and the management information circular was mailed Feb 17, 2026 and filed on SEDAR. Chair Edith Hofmeister presided with CEO Benjamin Gagnon, CFO Jonathan Mir, Global GC Rachel Silverstein and other directors in attendance; TSX Trust (Julie Kim) was appointed scrutineer and meeting materials were retained by the Secretary. The transcript contains procedural and attendance details only and discloses no resolutions, voting results, financials, or operational guidance.

Analysis

A near-term governance or corporate-action focus at a mid-cap Bitcoin miner typically presages a material capital-structure event (equity raise, asset sale, or board reshuffle) that changes marginal funding cost and free cash flow capture. Market mechanics: a 10–25% immediate derating is common when dilution is priced in, while successful asset sales or strategic partnerships can re-rate peers by 15–40% within 3–6 months as balance-sheet risk falls.

Second-order winners are counterparties with flexible balance sheets — power providers with take-or-pay contracts and OEMs that can redeploy rigs — because they capture negotiation leverage during recapitalizations; losers are late-cycle hosters and small self-miners who face contract renegotiation and higher marginal power rates. Competitor dynamics: a distressed recapitalization at one operator often sparks M&A interest from better-capitalized miners, compressing supply of acquisition targets and boosting relative valuations of scale operators over 6–12 months.

Key catalysts and tail risks: expect volatility around regulatory filings, proxy outcomes and related SEDAR/SEC disclosures in the next 2–8 weeks — these documents will determine whether dilution or asset monetization is the path chosen. Tail risks include sharp BTC sell-offs or a tightening of financing conditions; either can convert a manageable recapitalization into a distressed equity story within 30–90 days. Monitor hashprice and hosted MW utilization weekly for early read-throughs on cash burn trajectory.

Key Decisions for Investors

• Event-driven tactical: Initiate a pair trade — short BITF and long MARA (size 1:1 notional) for 3 months targeting 20–35% relative outperformance of MARA if BITF faces dilution; set stop-loss at 12% adverse move on the pair and take-profit at 25% relative move.
• Downside insurance: Buy BITF 3-month puts sized to cover 50–70% of your position (or buy a 3-month collar if long) to protect against a >20% downside spike post-disclosure; cost typically 2–6% of notional depending on implied volatility — acceptable as insurance vs equity dilution risk.
• Opportunistic long: If disclosures show asset monetization with >1.0x cash/NAV recovery, initiate a 6–12 month long BITF position sized small (2–4% portfolio) — target 40–60% upside with a 30% stop (time arbitrage; market usually slow to price recovery).
• Credit/structured: For lower-cost exposure, sell short-dated out-of-the-money calls (covered if long) to fund protective puts or buy-call spreads 6–12 months out to capture asymmetric upside if governance outcome is constructive; aim for positive carry of 1–3% monthly while waiting for clarity.