Bitfarms has “tremendous” inbound interest, this analyst says

ATB Capital Markets analyst Martin Toner said in a Sept. 30 report that Bitfarms (Bitfarms Stock Quote, Chart, News, Analysts, Financials TSX:BITF) is advancing its high-performance computing strategy, with its secured U.S. power sites and Panther Creek project positioning it to capture growing AI demand.

Bitfarms, based in Toronto and New York, develops and operates data centers and energy infrastructure for high-performance computing and Bitcoin mining. The company’s pipeline totals about 1.3 gigawatts, concentrated mainly in the United States.

Toner said management views securing power in high-demand regions such as Washington, Quebec, and Pennsylvania as a competitive moat given multi-year grid waitlists. Panther Creek, its “flagship facility,” holds potential for roughly 500 megawatts of capacity and is central to Bitfarms’ long-term objective of converting all U.S. sites to HPC and AI. The overall portfolio has about 1.4 gigawatts of potential capacity, with nearly one gigawatt in Pennsylvania through power plants acquired from Stronghold Digital Mining, which also provide flexibility for grid expansion in the PJM market.

Development spending at Panther Creek is expected to total $400-million, with $10-million incurred in 2025 and most of the balance in 2026. Construction of the buildings is slated to begin in the first half of 2026, with 50 megawatts coming online by year-end and an additional 300 megawatts as early as 2027.

Toner noted that Bitfarms plans to build a hyperscaler-agnostic shell to maximize applicability and optimize for HPC and AI revenues once energy becomes available.

The company’s contracting strategy is to delay signing long-term deals until closer to energization, when supply and demand dynamics are expected to be more favourable, allowing higher pricing and margins. To finance the first phase of Panther Creek, Bitfarms has secured a US$300-million facility with Macquarie, which Toner said should be sufficient to lock in a customer and enable a potential refinancing in the second or third quarter of 2026. With approximately US$250-million in cash and Bitcoin on the balance sheet, Bitfarms will need to raise additional project financing for later phases but expects improved access to capital as assets are de-risked.

Management highlighted “tremendous” inbound interest from potential customers, citing Panther Creek’s proximity to major data centre clusters and metro areas such as Philadelphia and New York, where power supply is limited. Scrubgrass, another Pennsylvania site, could expand to one gigawatt over time due to its location near the Tennessee Natural Gas Pipeline, while Washington state offers similar strategic advantages given its closeness to Seattle, Portland, Vancouver, and Silicon Valley.

-30-