Bitfarms (BITF) 28th Annual Needham Growth Conference Virtual summary

Market trends and investment thesis

• Data center and compute demand is accelerating, driven by AI, with a 20-year trend of 8.8% annualized growth and lease rates rising from 3% to 12% since 2022.

• Power and infrastructure, not silicon or capital, are the main bottlenecks for HPC and AI growth, with a projected 45 GW power shortfall for data centers by 2030.

• Companies with energy and infrastructure assets are expected to benefit most as demand and lease rates rise.

• Strategic focus is on optimizing lease timing to maximize rates and margins, prioritizing infrastructure development, and targeting next-gen GPU compatibility.

• Plans include leapfrogging current GPU architectures to develop for NVIDIA's Vera Rubin GPUs, expected to be in highest demand by 2027.

Portfolio and site-specific developments

• Holds the largest power portfolio in its regions, with sites in Pennsylvania, Quebec, and Washington, all outside Texas and in high-demand, cool climates.

• Pennsylvania campuses secured power ahead of the recent HPC/AI demand surge, with Panther Creek and Sharon leading in development.

• Quebec portfolio (170 MW) is 100% renewable and can be converted from Bitcoin mining to HPC/AI, potentially increasing provincial data center capacity by 25%.

• Washington site (18 MW) is in a prime data center cluster with the lowest U.S. power costs and is being considered for GPU as a service or colocation.

• Scrubgrass campus in Pennsylvania has potential for over 1 GW capacity, with power and generation expansion under evaluation.

Financial position and capital strategy

• Raised $590 million in Q3 via convertible notes and maintains $750 million in unencumbered liquidity plus $200 million available for project development.

• Strong balance sheet enables self-financing of initial projects through Notice to Proceed (NTP), expected for Washington, Sharon, and Panther Creek by late 2026.

• Financing strategy includes project-level debt (60-65% LTV), recycling equity, and selective equity raises, with a focus on prudent leverage and risk management.

• Will avoid over-leverage and speculative building, only committing major capital post-lease signing.