Bitfarms Engages Strategic Partners to Develop HPC/AI Business

Rhea-AI Summary

Bitfarms (NASDAQ/TSX: BITF) has announced strategic partnerships with Appleby Strategy Group (ASG) and World Wide Technology (WWT) to develop its High-Performance Computing (HPC) and Artificial Intelligence business. The expert consultants will conduct comprehensive feasibility analyses of Bitfarms' North American sites and advise on its global HPC/AI strategy.

The consultants will also assist in developing accelerated sales strategies and market the sites to potential customers. CEO Ben Gagnon highlighted that Bitfarms' 1.2 GW North American portfolio, particularly sites on the PJM grid, is well-suited for HPC/AI applications. The company expects HPC/AI contracts to provide long-term, steady cash flows while maintaining Bitcoin mining operations for upside potential.

Positive

• Strategic expansion into HPC/AI market diversifies revenue streams
• Partnership with established consultants ASG and WWT adds expertise
• 1.2 GW North American portfolio provides substantial infrastructure for HPC/AI operations
• Potential for long-term, steady cash flows from HPC/AI contracts

Negative

• Implementation timeline and costs not specified
• No guaranteed customer commitments mentioned

Insights

Technology Strategy Analyst

This strategic partnership marks a significant pivot for Bitfarms, positioning the company at the intersection of two high-growth markets: cryptocurrency mining and HPC/AI infrastructure. The focus on PJM grid locations is particularly strategic, as these areas typically offer reliable power infrastructure and competitive electricity rates - important factors for both crypto mining and HPC/AI operations.

The dual-revenue strategy presents a compelling business model: HPC/AI contracts can provide stable, predictable cash flows to offset the volatility inherent in Bitcoin mining operations. This approach could significantly reduce the company's exposure to cryptocurrency market fluctuations while capitalizing on the growing demand for AI computing infrastructure.

The engagement of established consultants ASG and WWT adds credibility to this initiative, as both firms bring substantial expertise in HPC/AI infrastructure development. Their involvement in both feasibility analysis and customer acquisition suggests a comprehensive approach to market entry.

However, this transition faces several challenges:

• Infrastructure adaptation costs and technical requirements for HPC/AI workloads
• Competition from established data center providers already serving the AI market
• Potential customer concerns about a crypto mining company's ability to meet enterprise-grade service levels
• The need to maintain optimal power allocation between crypto mining and HPC/AI services

The success of this initiative could transform Bitfarms from a pure-play crypto mining operation into a diversified digital infrastructure provider, potentially reducing its beta to cryptocurrency markets while capturing growth in the expanding AI computing sector.

-Engages expert consultants ASG & World Wide Technology-

TORONTO, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Bitfarms Ltd. (NASDAQ/TSX: BITF), a global Bitcoin and vertically integrated data center company, today announced it has engaged two expert consultants in HPC strategy and artificial intelligence (“AI”), Appleby Strategy Group (“ASG”) and World Wide Technology (“WWT”), to conduct a comprehensive feasibility analysis on all its North American sites and advise on its global HPC/AI strategy. In parallel, ASG and WWT will help build accelerated sales and development strategies and market the sites on behalf of Bitfarms to potential customers.

Bitfarms CEO Ben Gagnon stated, “Bitfarms is committed to maximizing the utility and value of our 1.2 GW North American portfolio. ASG and WWT will draw upon their substantial expertise to evaluate our sites for HPC/AI. Based on active discussions over the past several months with potential HPC/AI partners and customers, we are confident that our North American portfolio pipeline, particularly sites located on the PJM grid, is strongly suited for HPC/AI. The contracts associated with HPC/AI customers provide long-term, steady cash flows and earnings streams while our Bitcoin mining operations will continue to monetize Bitcoin’s flexible upside potential, creating a powerful and resilient portfolio that will generate long-term value for our shareholders.”

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global Bitcoin and vertically integrated data center company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining facilities with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.

Bitfarms currently has 12 operating Bitcoin data centers and two under development, as well as hosting agreements with two data centers, in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

To learn more about Bitfarms’ events, developments, and online communities:

www.bitfarms.com
https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/

Glossary of Terms

• Y/Y or M/M= year over year or month over month
• EH or EH/s = Exahash or exahash per second
• MW or MWh = Megawatts or megawatt hour
• HPC/AI = High Performance Computing / Artificial Intelligence

Forward-Looking Statements

This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding projected growth, target hashrate, opportunities relating to the potential of the Company’s data centers for HPC/AI opportunities, the merits and ability to secure long-term contracts associated with HPC/AI customers and other statements regarding future growth, plans and objectives of the Company are forward-looking information. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.

This forward-looking information is based on assumptions and estimates of management of the Company at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: an inability to apply the Company’s data centers to HPC/AI opportunities on a profitable basis; a failure to secure long-term contracts associated with HPC/AI customers on terms which are economic or at all; the construction and operation of the Company’s facilities may not occur as currently planned, or at all; there is no guarantee that the Company will be able to complete the acquisition of Stronghold Digital Mining, Inc. on the terms as announced, or at all; expansion may not materialize as currently anticipated, or at all; the digital currency market; the ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power for the Company to operate cryptocurrency mining assets; the risks of an increase in the Company’s electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which the Company operates and the adverse impact on the Company’s profitability; the ability to complete current and future financings; the risk that a material weakness in internal control over financial reporting could result in a misstatement of the Company’s financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; any regulations or laws that will prevent Bitfarms from operating its business; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission at www.sec.gov), including the restated MD&A for the year-ended December 31, 2023, filed on December 9, 2024. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by the Company. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law. Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Investor Relations Contacts:

Tracy Krumme
SVP, Head of IR & Corp. Comms.
+1 786-671-5638
tkrumme@bitfarms.com

Media Contacts:

Caroline Brady Baker
Director, Communications
cbaker@bitfarms.com

FAQ

What is Bitfarms' (BITF) new HPC/AI business development strategy?

Bitfarms has engaged ASG and WWT as expert consultants to analyze its North American sites for HPC/AI feasibility and develop sales strategies to attract potential customers.

How large is Bitfarms' (BITF) North American power capacity for HPC/AI operations?

Bitfarms has a 1.2 GW North American portfolio, with sites particularly on the PJM grid that are suited for HPC/AI operations.

What are the expected benefits of BITF's expansion into HPC/AI?

The expansion is expected to provide long-term, steady cash flows and earnings streams while maintaining Bitcoin mining operations for upside potential.

Which consulting firms has Bitfarms (BITF) partnered with for HPC/AI development?

Bitfarms has partnered with Appleby Strategy Group (ASG) and World Wide Technology (WWT) as expert consultants for HPC/AI strategy development.