Breaking Down Bitfarms Ltd. Financial Health: Key Insights for Investors

Watching Bitfarms Ltd. (NASDAQ: BITF) trade at $2.53 (up $0.27, +0.12%) with an intraday volume of 51,119,048 shares and a high/low of $2.59/$2.30, investors are tracking a company that launched as Bitfarms Technologies in 2017 and-after rebranding in 2018-scaled mining capacity from 12.8 EH/s in December 2024 (a 97% year-over-year increase) to 16.1 EH/s by February 2025, operates roughly 597.92 million shares outstanding as of December 16, 2025, endured a near-15% stake acquisition attempt by Riot Platforms in mid-2024 prompting a poison pill defense, secured a private debt facility of up to $300 million from Macquarie to underwrite its pivot into high-performance computing and AI infrastructure, and in 2025 opened a second executive office in New York while announcing a strategic transition away from crypto mining toward HPC/AI by 2027, all against a backdrop of vertically integrated data centers, hosting and electrical services, GPU-as-a-service ambitions, and more than a billion dollars of capital backing its North American expansion.

Bitfarms Ltd. (BITF): Intro

Bitfarms Ltd. (BITF) is a publicly traded bitcoin mining company operating large-scale data centers that run proof-of-work miners to produce BTC. The company combines mining operations, hosting services, and energy management to generate revenue from mined bitcoin and related services.

• Founded: 2017 - established to scale industrial bitcoin mining using geographically diversified, low-cost power sites.
• Headquarters / primary registration: Canada (operating globally in multiple jurisdictions with several large-scale farms).
• Listings: Traded as an equity in the U.S. market (ticker BITF).

• Major ownership structure: institutional investors, insiders (executive team and board), and public shareholders. Ownership stakes fluctuate with institutional transactions and equity placements.
• Capital raises: historically used equity and convertible debt to fund growth of mining capacity and acquisitions of mining hardware and sites.

Mission and corporate focus emphasize low-cost sustainable energy access for bitcoin mining, operational scale, and improving miner productivity. For the company's public-facing statement of purpose and strategic values, see: Mission Statement, Vision, & Core Values (2026) of Bitfarms Ltd.

• Primary revenue drivers:
  • Bitcoin block rewards and transaction fees from mined BTC (produced by on-site ASIC miners).
  • Hosting and colocation services for third-party miners at Bitfarms' facilities, generating recurring service fees.
  • Energy management optimization and selling excess or curtailed energy in some jurisdictions.
• Cost structure highlights:
  • Electricity (largest operating expense) - focus on contracts with low-cost and often renewable sources.
  • Depreciation of mining hardware (ASICs), maintenance, facility overhead, and staffing.
  • Financial costs from capital raises, debt servicing, and equipment financing.

• Operational risks and sensitivities:
  • BTC price volatility directly affects revenue and profitability.
  • Network difficulty increases reduce BTC yield per unit of hashrate.
  • Electricity costs and regulatory/environmental policy changes in operating jurisdictions.
• Market-performance snapshot (intraday): price 2.53 USD, up 0.27 USD from prior close, volume 51,119,048, latest trade 17:15 PST (Dec 19).

Bitfarms Ltd. (BITF): History

• Founded: 2017 (as Bitfarms Technologies Ltd.)
• Rebrand: October 2018 → Bitfarms Ltd.
• Public listing: North American exchanges (ticker: BITF)

• Public shareholders composed of institutional and retail investors (ticker: BITF).
• Management and board-led strategic decisions (NYC office opened July 2025 to increase U.S. market presence).

• Original mission: deploy low-cost, scalable Bitcoin-mining infrastructure powered by long-term, contracted energy.
• Updated mission (Nov 2025 onward): transition core operations toward high-performance computing (HPC) and artificial intelligence (AI) infrastructure, leveraging existing hydro/renewable-backed power contracts and data-center know-how.

• Data centers and farms: geographically distributed facilities hosting ASIC miners and cooling/power infrastructure.
• Mining operations: ASIC fleet mines Bitcoin for block rewards and transaction fees; performance measured in exahashes per second (EH/s).
• Power sourcing: negotiated power contracts (often low-cost, renewable or excess energy agreements) to lower operating costs and improve margins.
• Fleet management: purchasing, deploying, and maintaining miners; improving uptime and efficiency drove hashrate growth from 12.8 EH/s (Dec 2024) to 16.1 EH/s (Feb 2025).

• Cryptocurrency mining revenue: block rewards and transaction fees converted to fiat or held as digital assets (primary revenue source historically).
• Hosting & services: third-party hosting and colocation services at scale (where applicable).
• Transition revenue potential: planned monetization of compute capacity for HPC and AI workloads (strategic pivot announced Nov 2025 to be completed by 2027).

Bitfarms Ltd. (BITF): Ownership Structure

• Shares outstanding (as of December 16, 2025): 597.92 million.
• Riot Platforms stake (announced July 2024): nearly 15% - roughly 89.7 million shares based on the Dec 16, 2025 outstanding count.
• Defensive actions: Bitfarms adopted a poison pill strategy to dilute stock and deter a hostile takeover.
• Largest shareholders: a mix of institutional investors and individual stakeholders, with institutions holding a material portion of float.
• Management composition: executives with backgrounds in technology, finance, and operations leading strategic and mining operations.

Bitfarms Ltd. (BITF): Mission and Values

• Mission: Build and operate low-cost, sustainable data centers that deliver predictable, high-performance compute while minimizing environmental impact.
• Core value - Operational excellence: maximize uptime, efficiency and yield per MW through standardized builds and disciplined operations.
• Core value - Environmental responsibility: favor hydroelectric and other renewables to lower carbon intensity of compute.
• Core value - Innovation: pursue diversification into HPC/AI and optimize miner fleet performance and energy management.
• Core value - Shareholder focus: active capital allocation and defensive/strategic responses to M&A activity to protect value.
• Core value - Transparency & governance: regular public reporting of mining output, energy mix and financial performance.

• Site selection: prioritize locations with abundant low‑cost hydroelectricity (Paraná, Québec, Paraguay, Argentina, and other jurisdictions) to lower power costs and carbon intensity.
• Standardized design & scale: replicate modular data center designs across sites to reduce build time and improve reliability, driving higher performance per MW.
• Energy sourcing: long‑term power purchase agreements and direct access to renewable grids reduce exposure to fossil fuel volatility.
• Fleet optimization: continuously retrofit and redeploy mining rigs to maximize hashrate per watt and extend asset lives.
• HPC/AI pivot: repurposing or augmenting compute capacity for enterprise HPC workloads and AI inference/training as a diversification path, leveraging low‑cost power and secure facilities.
• Corporate governance & reporting: frequent operational disclosures (BTC mined, hashrate, power mix) and audited financials to maintain transparency toward investors.

• Revenue drivers: BTC production and sales timing, hosting fees, and increasingly revenue from non‑crypto compute services (HPC/AI) where deployed.
• Cost structure: power costs (primary), depreciation of mining hardware, facility OPEX, and capital expenditures for capacity expansions.
• Capital allocation: mix of reinvestment into capacity and hardware, opportunistic asset sales, and balance sheet management during market stress; company has historically reacted strategically to acquisition approaches to preserve shareholder value.
• Risk management: diversify geographies to mitigate jurisdictional risk, lock in favorable energy contracts, and maintain liquidity to operate through BTC price cycles.

• Sustainability: commitment to maximize renewable energy sourcing (notably hydroelectric) and report energy intensity metrics per BTC produced.
• Operational excellence: pursue >98% uptime, rapid fault detection and standardized maintenance across sites.
• Innovation & diversification: invest in HPC/AI infrastructure initiatives to create non‑Bitcoin revenue streams and increase utilization of low‑cost power.
• Transparency: periodic technical and financial disclosures including hashrate, BTC holdings, and energy mix updates.

Bitfarms Ltd. (BITF): How It Works

• Core operation: Design, build, own and operate data centers housing ASIC miners that perform SHA-256 hashing to validate Bitcoin transactions and earn block rewards and transaction fees.
• Geographic footprint: Facilities in North America and South America, with major concentrations in Quebec (Canada), Pennsylvania and Washington (U.S.), and South America sites-designed to balance energy costs, regulatory environment, and grid resilience.
• Vertical integration: In-house engineering, operations, electrical teams, and maintenance reduce downtime and cost per mined bitcoin compared with purely hosting or colocation models.

• Revenue streams:
  • Bitcoin mining (block rewards + transaction fees)
  • Hosting/colocation fees for third-party miners
  • Commercial/residential electrical services (notably in Quebec)
  • Data center leasing and managed services for high-performance computing (HPC) and AI workloads

• How hashing converts to cash:
  • Miners solve SHA-256 puzzles; successful blocks yield BTC (currently block subsidy + fees); Bitfarms credits mined BTC to its balance sheet and may sell portions to fund operations/capex.
  • Hash rate growth and energy efficiency (J/TH) drive cost per BTC mined-company prioritizes newer ASIC models and colocated low-cost energy to lower breakeven mining price.

• Hash rate deployed (PH/s to EH/s)
• Power capacity and utilization (MW)
• Energy cost ($/MWh) by site-hydro in Quebec typically lowest, followed by negotiated PPAs in U.S. states
• Fleet efficiency (Joules per terahash)
• Uptime / availability and hosting utilization rates

• Hosting and services economics:
  • Hosting fees provide predictable recurring revenue that offsets cyclical mining revenue; third-party host machines increase utilization of power and physical space.
  • Electrical contracting work accelerates site builds and reduces external capex timing, capturing margin on construction and maintenance.

• Bitfarms secures strategic energy portfolios in high-demand areas (Pennsylvania, Quebec, Washington) to supply growing compute and mining loads while optimizing price and resiliency.
• Energy contracts and site selection are central to lowering breakeven cost per BTC mined and enabling expansion into compute/HPC and AI where predictable power is required.

Bitfarms Ltd. (BITF): How It Makes Money

• Primary revenue: mining Bitcoin with company-owned ASIC fleets and selling BTC into the open market (cash sales and balance-sheet strategy depending on market conditions).
• Hosting services: colocation and turnkey hosting for third‑party miners at Bitfarms' data centers, generating recurring contracts and power-pass-through fees.
• Electrical services: design, installation and operation of electrical infrastructure for commercial and residential customers in Quebec, converting utility relationships into revenue and margin opportunities.
• High-performance computing (HPC) and AI services: selling compute, rack space and managed‑services capacity as Bitfarms migrates portions of capacity to HPC/AI workloads.
• Financial engineering and capital strategies: use of structured capital (e.g., private debt) and active capital allocation such as a corporate share buyback program to enhance shareholder value and fund growth.

• Hashrate and miner efficiency (higher TH/J and more EH/s increase BTC output and lower unit costs).
• Electricity cost and sourcing (Quebec's low-cost, low‑carbon grid is a strategic advantage).
• BTC price realized on sales and timing of market sales vs. treasury holdings.
• Utilization rates for hosted racks and conversion of excess capacity to HPC/AI revenue.

• Macquarie Group private debt facility - up to $300 million - to fund HPC project development and expand compute capacity.
• Share buyback program - management-initiated repurchases to enhance per-share value and return capital when opportune.