Bitfarms (Keel) Earnings Call Maps Bold AI Pivot

Bitfarms Ltd. ((TSE:BITF)) has held its Q4 earnings call. Read on for the main highlights of the call.

Bitfarms’ latest earnings call marked a stark turning point, as management framed 2025 as a reset year with weak profitability but transformational progress. Executives stressed optimism around a massive North American AI and HPC build‑out, backed by fresh capital and power assets, while openly acknowledging sizeable losses, execution risk, and the need to convert pipeline into contracted revenue.

From Bitcoin Miner to Keel, a U.S. HPC Platform

The company detailed a deliberate pivot away from Bitcoin mining toward high‑performance computing and AI infrastructure across North America. To underscore the shift, Bitfarms is re‑domiciling to the U.S. and rebranding as Keel, trading as KEEL, a change approved by more than 99% of shareholders.

2.2 GW Power and Land Pipeline as Core Asset

Management highlighted a secured pipeline of roughly 2.2 gigawatts of power and land, primarily in Pennsylvania, Washington State and Quebec. Flagship sites include 350 MW at Panther Creek, 110 MW at Sharon and 18 MW in Washington, positioning Keel as a major player in scarce, grid‑connected capacity.

Capital Raise Delivers Deep Liquidity Cushion

The company completed an oversubscribed $588 million convertible offering and exited its legacy Macquarie facility, leaving liquidity at about $520 million in cash and Bitcoin. Management described this war chest as well above budgeted capital needs to secure permits and reach initial lease signings.

Revenue Surges Despite Ongoing Transformation

Fiscal 2025 revenue reached $229 million, a 72% year‑over‑year increase that showed strong top‑line momentum even as the business model shifted. Executives argued that this growth provides a solid revenue base from which to pivot toward infrastructure‑driven income.

Balance Sheet Simplified and Deleveraged

By repaying the Macquarie debt facility, the company removed restrictive covenants and simplified its capital structure. Management said this flexibility is critical as it evaluates project‑level and corporate‑level financing to fund the AI and HPC buildout.

Three‑Year Execution Roadmap for Commercialization

The roadmap centers on 2026 as an execution year focused on permits, engineering and go‑to‑market work, followed by 2027 delivery as sites begin supplying megawatts. The company aims to scale beyond 2 GW, with lease talks under nondisclosure agreements already underway with prospective customers.

Institutional Talent and Blue‑Chip Partners

Keel has added senior infrastructure and finance leaders, including a new CFO, to manage its transition. It is also working with established data center specialists such as T5, Turner, Corgan, WWT and Vertiv to de‑risk construction, design and operations across the pipeline.

Rerating Catalysts Tied to Leases and Delivery

Management spotlighted three potential valuation catalysts: converting pipeline into signed leases, locking in expansion capacity, and delivering facilities that generate revenue in 2027. They contrasted Keel’s roughly $1.9 million per 2027 MW implied valuation with leased‑asset peers trading near $4–6 million.

Heavy Operating and Net Losses Cloud Near Term

Results showed a 2025 operating loss of $150 million, including $98 million of noncash depreciation and $28 million of impairments, versus a $28 million loss in 2024. Net loss widened sharply to $209 million, or $0.38 per share, compared with $7 million, or $0.02 per share, a year earlier.

Impairment and Derivative Hits Weigh on Earnings

The company booked $28 million in impairment charges along with a $68 million loss from changes in derivative assets and liabilities. These non‑operating and noncash items were a major driver of the year‑over‑year deterioration and underline the complexity of the transition year.

Adjusted EBITDA Slips Despite Strong Sales

Adjusted EBITDA came in at $29 million for 2025, down from $31 million in 2024, a modest 6.5% decline. The small drop, against a backdrop of 72% revenue growth, signaled that underlying profitability remains tight as the firm invests heavily in future infrastructure.

Digital Asset Exposure Still a Swing Factor

Management noted that results were affected by lower Bitcoin prices and the changing fair value of digital assets, as well as prior gains on Bitcoin disposals. As the company accelerates its exit from mining, it is phasing out a volatile revenue stream that once supported liquidity and earnings.

Execution, Permitting and Regulatory Timing Risks

Key value drivers such as permits, Notices to Proceed and lease execution are highly sensitive to timing and local regulatory processes. Executives avoided specific dates for first lease signings and acknowledged uncertainty around permit conversions, emphasizing the need to hit milestones to unlock value.

Winding Down Bitcoin Mining Footprint

Bitcoin mining assets, including the Paso Pe operations, are being classified as held for sale and wound down through 2026. As hash rate is scaled back, the contribution of mining to cash flow and operating metrics will decline, increasing reliance on the emerging HPC and AI business.

Lease Signings Central to Repricing the Stock

The leadership team conceded that the market currently values Keel mainly on its secured power rather than full data center economics. They stressed that long‑term, investment‑grade leases are the pivotal trigger for a rerating, and those agreements have yet to be signed.

Guidance: Clear Milestones Toward 2027 Revenue

Guidance calls for the U.S. redomiciliation and KEEL ticker to follow the April 1 rebrand, with liquidity of $520 million supporting a more than 2.2 GW pipeline and about 1.5 GW of expansion capacity. Management targets permits over the coming months, lease signing with Notice to Proceed conditions during 2026, and first megawatts and revenue from new sites in 2027, scaling beyond 2 GW into 2028 and beyond.

The earnings call painted a picture of a company in transition, trading near power‑only valuations while aiming to become a full‑fledged AI and HPC landlord. Investors are being asked to look past deep near‑term losses and regulatory risk to a 2027 payoff, with the rebrand to Keel, ample liquidity and eventual lease execution as the critical tests of the strategy’s credibility.