Bitfarms (BITF) Q4 2025 earnings review
U.S. Pivot Drives Top-Line Growth, But Transition Costs Crush the Bottom Line
Bitfarms completed a massive transition year, posting a 72% YoY revenue surge to $229 million. However, the operational shift from a crypto-native miner to a U.S. HPC/AI infrastructure provider—soon to be rebranded as Keel Infrastructure—came at a steep cost. Net loss exploded to $285 million, driven by Latin American operation write-offs ($76M), digital asset write-downs, and a 27% spike in G&A to support U.S. expansion. Adjusted EBITDA margin compressed to 13% from 23%. Despite the heavy GAAP losses, the company fortified its balance sheet, boasting $520 million in liquidity and clearing a $100 million debt facility to unencumber its 2.2 GW pipeline. The legacy Bitcoin mining era is ending; execution on HPC leasing is now the sole focus.
🐂 Bull Case
The company has assembled a 2.2 GW development pipeline (341 MW energized, 430 MW secured, 1.5 GW expansion) in strategic U.S. data center hubs, positioning it perfectly for the AI infrastructure boom.
With $520 million in total liquidity ($359M cash, $161M unencumbered Bitcoin) and the full repayment of the $100M Macquarie debt facility, Keel Infrastructure has massive financial flexibility to fund construction without desperate dilution.
🐻 Bear Case
The transition is highly capital-intensive and dilutive to near-term margins. Adjusted EBITDA margin nearly halved to 13%, while operating losses expanded by 434% YoY.
The exit from legacy Latin American operations triggered $76M in discontinued operations losses, and the remaining digital asset portfolio created a $50M fair value drag on earnings.
⚖️ Verdict: ⚪
Neutral. The strategic pivot to U.S. HPC/AI infrastructure is the correct long-term move, but the sheer cost of this transition makes 2025 an ugly year on paper. The thesis entirely hinges on Keel Infrastructure's ability to quickly sign investment-grade counterparties and monetize its 2.2 GW pipeline.
Key Themes
HPC/AI Infrastructure Transformation
Accelerating. Bitfarms is aggressively executing its strategic pivot away from Bitcoin mining. The portfolio rebalancing is highlighted by the shareholder approval to redomicile to the U.S. and rebrand as Keel Infrastructure (KEEL). The company now controls a massive 2.2 GW pipeline across Pennsylvania, Washington, and Quebec, transitioning from a transaction-based mining model to a long-term, lease-based infrastructure model.
Balance Sheet Fortification
Stable. The company boasts $520 million in liquidity ($359 million cash, $161 million in Bitcoin). Crucially, management repaid the $100 million outstanding Macquarie debt facility in February 2026. This unencumbers Panther Creek and provides maximum flexibility to pursue more cost-effective project-level financing as they secure tenants.
Margin Compression & G&A Bloat
Decelerating. Adjusted EBITDA margin dropped from 23% in FY24 to 13% in FY25. Meanwhile, General and Administrative (G&A) expenses surged 27% to $78.3 million. Management attributes this to increased headcount needed for U.S. expansion and the Stronghold acquisition integration. Until HPC leasing revenues activate, overhead will continue to drag heavily on profitability.
Costly Exit from Latin America
Reversing. The pivot to North America required the company to classify its legacy Latin American assets as discontinued operations. This resulted in a massive $76 million loss from discontinued operations in FY25, up 262% from $21 million in FY24. The operational pivot has been clean strategically, but brutal financially.
Digital Asset Volatility Drag
Reversing. While the company intends to wind down its Bitcoin reliance, it is still exposed to the asset class during the transition. FY25 saw a $22 million net loss related to digital asset fair value changes, compared to a $53 million net gain in FY24. The company realized $28.2 million in gains from sales, but took a $50.5 million hit on fair value revaluations.
Other KPIs
A severe deterioration from the $28.0 million operating loss in FY24. This was heavily driven by a $28.4 million impairment charge on long-lived assets, the $50.5 million fair value adjustment on digital assets, and the spike in G&A to support the corporate transition.
Down 8% YoY from $31.3 million. Despite a 72% jump in top-line revenue, cash profitability shrunk, emphasizing the capital-intensive phase of restructuring the legacy mining fleet into a Tier-1 data center operation.
Guidance
Accelerating. The statutory plan of arrangement is approved. Bitfarms will redomicile to the U.S., move its headquarters to New York City, and rebrand as Keel Infrastructure, trading under the ticker 'KEEL' on Nasdaq and TSX. This completes the identity shift to an American digital infrastructure play.
Key Questions
Project-Level Financing Strategy
With the $100 million Macquarie facility repaid, what is the strategy and expected cost of capital for project-level financing at Panther Creek and other sites once initial leases are signed?
Tenant Acquisition Timeline
Given the 430 MW of secured capacity and the active go-to-market processes in PA and WA, what is a realistic timeline for investors to expect the first finalized lease agreement with an investment-grade HPC counterparty?
G&A Stabilization
General and Administrative expenses reached $78 million in FY25 due to acquisition and expansion costs. Have we reached a run-rate peak for overhead, or will G&A continue to scale aggressively as the 1.5 GW expansion pipeline is developed?