Bitfarms expansion follows board takeover settlement

Riot forces board changes via legal pressure

Riot Platforms holds a 14.9% stake in Bitfarms. The conflict began when Riot made a private proposal to the Bitfarms Board on April 22, 2024, for US$2.30 per share. This offer amounted to a 24% premium to the one-month volume-weighted average share price as of May 24, 2024. The total equity value of the proposal reached US$950 million. Under this deal, Bitfarms shareholders would own 17% of the combined company. Bitfarms rejected this proposal without dialogue. The company then implemented a shareholder rights plan with a 15% trigger. The Ontario Capital Markets Tribunal ordered a cease trade of this plan because the 15% trigger undermined the animating principles of the take-over bid regime. The dispute escalated after Bitfarms terminated CEO Geoffrey Morphy in May 2024, which followed a $27 million lawsuit filed by Morphy against the company for breach of contract and wrongful dismissal. The company failed to manage CEO succession effectively, as Morphy was the fourth CEO in five years. Riot nominated John Delaney, Amy Freedman, and Ralph Goehring to the board. Founders Nicolas Bonta and Emiliano Grodzki faced criticism regarding their commitment to shareholder interests. A settlement reached in September 2024 altered the board composition. Andres Finkielsztain stepped down and Amy Freedman joined the Board. Riot agreed to vote in favor of the expansion of the Board from five to six members.

Operational growth in North America

Bitfarms operates 13 Bitcoin data centers in Canada, the United States, Paraguay, and Argentina. The company manages an energy portfolio of over 950 MW in 2025. In February 2025, the operational hashrate reached 16.1 EH/s. This figure grew 6% from the previous month. The average operational hashrate reached 13.4 EH/s, a 20% increase from the previous month. The company also focuses on North American expansion through hosting agreements. Bitfarms uses agreements with Stronghold Digital Mining in Pennsylvania to support 4 EH/s. The company expects nearly 75% of its total hashrate to come from North American data centers by the first half of 2025, following recent hosting agreements with Stronghold Digital Mining in Pennsylvania. In November 2024, the company achieved a 12.8 EH/s operating hashrate, which was a 100% year-over-year increase. During that same month, the company transferred 351 BTC to Bitmain for miner upgrades.

Production and the AI shift

Bitfarms produced 213 BTC in February 2025. This production amount rose 6% from the previous month. The company earned an average of 7.6 BTC per day. At a Bitcoin price of $84,000, these daily earnings totaled $638,400. The company sold 75 BTC for $6.5 million to manage its treasury. This sale left the company with 1,260 BTC in its treasury. This holdings value totals $105.8 million. In February, the company added 108 BTC to its treasury, up from 1,152 BTC in the previous month. In November 2024, the company held 870 BTC in its treasury, valued at $84.4 million. Bitfarms also upgrades hardware to boost efficiency. The company upgraded 19,000 T21 miners to S21 Pro models to target a 10% efficiency improvement in the first half of 2025. The Bitcoin to average EH/s ratio decreased 11% month-over-month in February. The company also manages a 200 MW Yguazu, Paraguay data center which it plans to sell. Bitfarms expects to close the Stronghold Digital Mining acquisition in the first quarter of 2025. The company uses mining profits to transition into high-performance computing and AI infrastructure. You should note the company’s focus on the PJM portfolio. Will the reliance on this portfolio provide enough flexibility for new workloads?