Bitfarms Ltd.

during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Tracy Krumme, SVP, Investor Relations and Corporate Communications. Please go ahead.

Thank you, and welcome to Bitfarm's first quarter 2025 conference call. With me on the call today is Ben Gagnon, Chief Executive Officer and Director, and Jeff Lucas, Chief Financial Officer. Before we begin, please note this call is being webcast with an accompanying slide presentation. Today's press release and our presentation can be accessed on our website, bitfarms.com, under the Investor section. Turning to slide two. I'd like to remind everyone that certain forward-looking statements will be made during the call and that future results could differ from those implied in this statement. The forward-looking information is based on certain assumptions and is subject to risks and uncertainties, and I invite you to consult BIDFARM's MD&A for a complete list. Please note that references will be made to certain measures not recognized under IFRS and therefore may not be comparable to similar measures presented by other companies. We invite listeners to refer to today's press release and our MD&A for definitions of the aforementioned non-IFRS measures and their reconciliations to IFRS measures. Please note that all financial references are denominated in U.S. dollars unless otherwise noted. I'd also like to remind everyone that we will be at the following upcoming conferences. Consensus 25, which takes place today through May 16th in Toronto. The AIMS Summit in London from May 19th to 20th. Bitcoin 2025 Conference in Las Vegas from May 27th to May 29th. HPE Discover in Las Vegas from June 23rd to June 26th. And Northland's Virtual Growth Conference on June 25th. There will be opportunities for in-person one-on-one investor meetings around these conferences. So if interested, please reach out to investors at bitfarms.com. And now turning to slide three, it is my pleasure to turn the call over to Ben Gagnon, Chief Executive Officer and Director. Ben, please go ahead.

Thanks, Tracy. Good morning and welcome to BitFarms Q1 2025 earnings presentation. I'm thrilled to address our esteemed audience of investors, analysts, and stakeholders who have joined us today. Your support and engagement are invaluable as we navigate one of the most transformative periods in Bitfarm's history. Turning to slide four. The global demand for compute power is surging, driven by AI innovation, cloud computing, and data-intensive applications. BitFarms is fully equipped to meet this insatiable demand with our robust North American energy portfolio and operational expertise. A recent McKinsey report cited that by 2030, companies across the compute value chain need to invest a staggering $5.2 trillion into data centers to meet worldwide demand for AI alone. This is based off of a projected 156 gigawatts of AI-related data center capacity demand by 2030, 125 of which will be added the next five years. In five years, the power needs for HPC and AI will be almost 10 times the power needs of Bitcoin today. The bottleneck on the growth is not chips, but power. And this is where BitFarms comes into play. We are no longer solely a Bitcoin mining company. We are evolving. into a leading North American energy and compute infrastructure company. This strategic pivot leverages our core competencies and energy portfolio, positioning us at the forefront of the exciting high-growth sectors of high-performance computing, artificial intelligence, and energy infrastructure, while maintaining cost-effective and efficient upside to rising Bitcoin prices. Today, we'll guide you through our solid progress in Q1 with a focus on two key priorities for 2025, continued US expansion and advancing our HPC and AI business. By focusing on these priorities, we aim to drive long-term shareholder value, capitalize on macro tailwinds in energy and compute markets, and establish BitFarms as a leader empowering tomorrow's economy. Turning to slide five. In Q1, we made extraordinary progress in rebalancing our portfolio towards the United States and HPC and AI infrastructure. executing two transformative transactions that set the stage for our future growth. First, we acquired strategic US energy campuses and power generation facilities, giving us immediate HPC development opportunities and a robust multi-year growth pipeline in Pennsylvania. With these two flagship campuses, each boasting a multi-year pathway to nearly 500 megawatts of power capacity in prime locations, we are attracting interest from institutions with a robust appetite for power and compute infrastructure. Second, we strategically divested our Iguazu-Paraguay Bitcoin mining site. This site was purpose-built for Bitcoin mining and lacked the fiber and market demand for HPC and AI conversion, making it misaligned with our new HPC and US-centric strategy. The strategic site divestiture was profitable and brought in significant cash proceeds for reinvestment in our US growth initiatives. More importantly, it allowed us to avoid hundreds of millions of dollars in capital expenditures needed to complete and equip the site for Bitcoin mining, preserving our balance sheet strength for higher value opportunities and keeping our capital, time, and efforts focused on the US and HPC. The rapid and simultaneous execution of these transactions demonstrates Bitfarm's agility and forward-thinking approach towards managing and developing our energy and compute infrastructure portfolio. We're not just planning for the future, we're building it. To support this pivot, we've restructured our organization, streamlining operations and aligning teams for HPC and AI development in the U.S. We've onboarded top-tier executives with expertise in HPC AI and construction management, enabling us to collaborate at an accelerated pace with our world-class advisors, WWT and ASG. These advisors have brought extensive resources and expertise, helping us assess, design, and co-market our HPC assets to prospective clients, significantly collapsing development timelines and ensuring better outcomes. Lastly, on the Bitcoin mining front, we grew our ExaHash under management over 50% in first quarter to 19.5 ExaHash. we are now incredibly well positioned to take advantage of rising Bitcoin prices with almost no planned Bitcoin mining capex remaining. Importantly, with fewer than 300 miners left to clear US customs and those 300 scheduled to clear this week, we have practically no foreseeable tariff risk on our miners. Over 94% of our purchase miners are now installed. And with the final install of remaining miners occurring this quarter, we've effectively completed our planned Bitcoin mining growth initiatives. Through this fleet upgrade, we have gained market share and reduced our operating costs per terahash dramatically. Importantly, with no material CapEx planned for Bitcoin mining, the majority of our current 2025 CapEx investments will focus on electrical infrastructure, namely substations, transmission lines, and civil works. The capstone of our Q1 achievements actually occurred on April 1st, when we secured up to $300 million from a division of Macquarie Group. one of the world's largest infrastructure investors. The deal validates our HPC and AI development thesis and provides the capital to begin development of our Panther Creek campus, which I'll discuss shortly. The initial $50 million tranche is secured by Bitfarm's assets, with an additional $250 million that will become available as we achieve specific development milestones. This partnership not only strengthens our financial position, but also opens doors to other top-tier collaborators, enhancing our credibility and outcomes in the HPC and AI market. Turning to slide six. The foundation we built in Q1 was what we needed to do as a company to facilitate our pivot to HPC in the US. I'm proud to say that we accomplished in Q1 exactly what we sought out to get done. Now with this foundation complete and with the right people, advisors, and assets in place, we are focused on developing our HPC business in a systematic and scalable fashion. Our HPC and anti-business is being built on a structured, repeatable process designed for scalability and efficiency across our portfolio of data centers. For every site we will seek to convert into HPC, we will develop the master plans while pursuing site-specific strategic financing partners or structures to finance the infrastructure development in an accretive fashion to our shareholders. Afterwards, construction of infrastructure and the customer acquisition process will both ramp simultaneously in order to accelerate timelines. This repeatable approach ensures we can streamline workflows and replicate our success and learnings at Panther Creek across other sites in our portfolio while maintaining consistency, optimizing resources, and wherever possible, collapsing timelines. I would now like to take a moment to zoom in on Panther Creek. where we have secured initial financing and are making great progress on the master site planning. Turning to slide seven. With a potential capacity of nearly 500 megawatts, supported by multiple power sources, ample fiber access, and strategically located near major metropolitan areas and existing data center clusters, Panther Creek is going to be our first HPC campus. We've made significant progress on Panther Creek's development since we secured the site in March. On this slide, we have some renders of one of the conceptual data center plans for Panther Creek that are coming out of the design and engineering of the site master plan. So far, we've created preliminary sitemap plans, 3D models, and test fits for various data center designs, allowing us to optimize the campus layout across numerous phases of development and design. Phase 1 and Phase 2 substation design and engineering are nearly complete, and we've also conducted site visits with leading manufacturers and suppliers of modular data center infrastructure, exploring innovative solutions to accelerate deployment and reduce costs as we build for the HPC needs of the future. Further engineering, design, and planning are underway, with the goal of finalizing the master plan for Panther Creek in the second quarter. Once complete, we'll break ground in the second half of 2025, initiating construction of transmission lines, securing key substation equipment, and beginning civil works to prepare the land for active construction. Simultaneously, we'll be ramping up customer acquisition efforts, engaging prospective clients to refine the infrastructure based on their specific needs. This dual track approach ensures we're building a market-ready facility that maximizes value without wasting any time. Turning to slide eight. I'm excited to share that the feasibility assessments from WWT and ASG have validated the suitability of all of our U.S. sites, Panther Creek, Scrubgrass, Sharon, and Washington State for HPC and AI conversion. These sites boast the critical attributes needed for high-performance data centers, immediate power capacity, ample land, robust fiber networks, proximity in the major metropolitan areas, and positioning in high-demand compute markets. Panther Creek, Square Brass, and Sharon in Pennsylvania benefit from their location in the PJM interconnection, one of the largest and most reliable power markets in the U.S. with access to multiple power sources for enhanced reliability. In Washington, our site is strategically positioned in a region known for its stable, low-cost hydropower below 3 cents per kilowatt hour and the existing data center cluster that is developed around it, making it an ideal location for HPC and AI development. These assessments confirm that our US portfolio is not just viable, but exceptionally well-suited for conversion. Each site is ready to support the infrastructure demands of AI workloads, from power-intensive GPU clusters to high-speed data connectivity. Our ultimate objective will be to convert all US sites to HPC and AI over time, starting with Panther Creek as our flagship campus. This validation strengthens our confidence in our strategy and positions BitFarms to capture a significant share of the rapidly growing HPC and AI market. Importantly, the work at Panther Creek also serves as a blueprint for our broader U.S. portfolio. We're undertaking similar planning and engineering across all our U.S. sites, creating a scalable pipeline of HPC and AI data centers to bring to market. Each campus and site will benefit from the lessons learned at Panther Creek, improving efficiency and reducing development timelines as we expand development across our U.S. portfolio. Turning to slide nine. As we look to the future, BidFarms is poised for extraordinary growth in 2025 and beyond. Building off of our strong Bitcoin mining experience and foundation, our strategic pivot to HPC and AI infrastructure aligns us with a rampant demand for CompuPower, driven by AI innovation, cloud computing, and data-intensive applications. With a clear path to 1.4 gigawatts of power capacity, we're building an exciting energy and Compu portfolio to power tomorrow's economy. Our energy portfolio has been rebalanced to 70% North American. with all US sites validated for HPC and AI conversion. We are now well positioned to maximize the value of our power portfolio through HPC conversion and have the structured development processes, world-class team, and advisors to do so rapidly and efficiently. Our Bitcoin mining operations produce free cash flow to support the business and our HPC development, and our Bitcoin One program builds off the success we achieved in 2024, delivering cost-effective exposure to rising Bitcoin prices and seeking to amplify returns. Lastly, we are doing this with a financial foundation that is stronger than ever. With up to $300 million in financing from a division of Macquarie Group, coupled with strong liquidity, we have the capital to execute our vision accretively with minimal delusion. BitFarms is not just adapting to the future. We're building it. And for shareholders, this represents an unparalleled opportunity to invest in a company at the forefront of a transformative industry with significant upside potential that we believe has yet to be recognized by the market. Thank you for joining us on this exciting journey. I'm confident that our strategic vision, disciplined execution, and strong financial position will deliver exceptional value in the quarters and years ahead. Turning to slide 10. And with that, I will turn the call over to Jeff for the financial update.