Bitfarms (BITF) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Strategic growth and diversification

• Plans to expand market share from just under 2% to about 3% by Q1 next year, focusing on operational excellence and strategic growth rather than growth for its own sake.

• Announced acquisition of Stronghold, expected to close in Q1 next year, enabling vertical integration through ownership of two power plants in Pennsylvania and access to the PJM energy market.

• Stronghold acquisition allows for significant energy portfolio expansion, with a pathway to 955 megawatts by end of next year and potential for over 1.5 gigawatts in the future.

• Portfolio rebalancing will shift nearly 50% of energy assets to the US and two-thirds to North America, reducing Latin American exposure.

• Growth plan includes tripling hash rate and improving energy efficiency by 40% in 2024, with a robust pipeline to 35 exahash and beyond in 2025.

Operational and technological advancements

• Doubling site capacity at Stronghold with minimal capital expenditure by leveraging existing substations and power plants.

• Upgrading outdated mining fleets at acquired sites, targeting an increase from 4 to 20+ exahash, leveraging high-end miners and existing infrastructure.

• Unique opportunity to integrate HPC and AI infrastructure, reducing capital and operational costs by using power plants for redundancy instead of diesel generators.

• Ability to monetize redundant power infrastructure through Bitcoin mining, improving both revenue and operational efficiency.

• Environmental benefits achieved by using alternative energy sources and reducing reliance on diesel, making operations cleaner and more sustainable.

Financial strategy and capital efficiency

• Growth plans are fully funded through operational revenues, with systematic Bitcoin sales and robust liquidity.

• Employs a synthetic HODL strategy, using call options to maintain upside exposure to Bitcoin while funding operations, avoiding dilution.

• This approach provides capital efficiency and flexibility across flat, declining, or rising Bitcoin price scenarios.