Bitfarms Q2 2025 slides: Revenue jumps 87% as strategic pivot to HPC/AI accelerates

Introduction & Market Context

Bitfarms Ltd (NASDAQ:BITF) presented its Q2 2025 earnings on August 12, 2025, highlighting strong revenue growth and accelerating its strategic transformation from a pure Bitcoin mining operation to a North American energy and compute infrastructure company. The presentation comes as the company’s shares traded at $1.21 in premarket, down 1.63% from the previous close of $1.23.

The company is executing a significant pivot toward high-performance computing (HPC) and artificial intelligence infrastructure, capitalizing on surging demand in these sectors while maintaining its Bitcoin mining operations as a cash flow foundation. This strategic shift follows a challenging first quarter where the company reported a net loss of $36 million despite revenue growth.

Quarterly Performance Highlights

Bitfarms reported substantial revenue growth in Q2 2025, reaching $78 million, representing a 16% increase quarter-over-quarter and an impressive 87% jump year-over-year. The company maintained a healthy gross mining margin of 45%, slightly improved from 43% in Q1 2025 but down from 51% in Q2 2024.

As shown in the following revenue and gross mining margin chart:

Adjusted EBITDA came in at $14 million for Q2 2025, showing a 7% decrease from the previous quarter but a 27% improvement compared to the same period last year. This performance demonstrates the company’s ability to generate meaningful earnings despite ongoing strategic investments.

The company produced 718 BTC during the quarter with a direct cost per Bitcoin of $48,200 against revenue per Bitcoin of $98,000. Bitfarms’ Bitcoin holdings increased to approximately 1,200 BTC, up about 25% from year-end 2024, with total Bitcoin held (including restricted BTC) reaching 1,402.

Strategic Initiatives

A cornerstone of Bitfarms’ transformation is the strategic pivot to U.S. operations and HPC/AI infrastructure development. The company has shut down its Argentina operations, which management indicates will reduce risk and costs while improving key operational metrics. This move rebalances the company’s portfolio to 82% North American megawatts, with proceeds estimated at $18 million to be reinvested in U.S. operations.

The company’s North American energy portfolio spans three strategic regions positioned to meet growing demand for HPC/AI infrastructure:

The flagship Panther Creek development in Pennsylvania represents a significant expansion opportunity with 350-410 MW total capacity on 296 acres. The company has completed the master site plan and secured partnerships for development, with groundbreaking planned for Q4 2025.

Bitfarms has also established a principal executive office in New York City, 130 miles from the Panther Creek site, strengthening its U.S. presence. Additionally, the company has initiated a transition to U.S. GAAP accounting standards, which management believes will simplify corporate structure, reduce costs, broaden the U.S. investor base, and improve eligibility for U.S. indices.

Detailed Financial Analysis

Bitfarms secured $300 million in debt financing from Macquarie Group (OTC:MQBKY) to fund the initial Panther Creek data center development, demonstrating strong institutional backing for its strategic initiatives. The company reports generating approximately $8 million in monthly free cash flow from mining operations, providing a solid foundation to fund its HPC/AI business development.

The company’s liquidity position remains strong, with approximately $230 million in total liquidity as of August 11, 2025. This includes expected remaining payments of $10 million from HIVE through September and the aforementioned monthly free cash flow.

Management has shown confidence in the company’s long-term prospects by repurchasing over 4.9 million shares since July 28, 2025. This share buyback program comes despite the company missing analyst expectations in Q1 2025, when it reported an EPS of -$0.07 against a forecast of -$0.02.

Forward-Looking Statements

Bitfarms positions itself for continued growth with a multi-faceted approach combining its established Bitcoin mining business with ambitious HPC/AI infrastructure development. The company highlights its 1 GW Pennsylvania pipeline strategically located in an emerging AI hub fueled by massive regional investment, including $90 billion in recent commitments from major technology companies like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Meta (NASDAQ:META).

Political support for these initiatives appears strong, with the company showcasing relationships with Pennsylvania officials and highlighting expedited regulatory approval processes for energy and HPC/AI infrastructure development.

Looking ahead, Bitfarms plans to continue its U.S. pivot with the majority of its megawatt pipeline based in the United States. The company aims to leverage its strengthened balance sheet with $230 million in cash and Bitcoin holdings to fund this expansion while maintaining its corporate share buyback program.

The strategic shift toward HPC/AI infrastructure represents both an opportunity and a challenge for Bitfarms. While the pivot positions the company to capitalize on growing demand for compute infrastructure, it also introduces execution risks as the company transitions from its traditional Bitcoin mining focus. Investors will be watching closely to see if the company can successfully navigate this transformation while improving its bottom line after the disappointing Q1 2025 results.

Full presentation:

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