Not sure if your information is outdated or if you're using a different definition of federate, but this blog post says they have support for a degree of federation: https://bsky.social/about/blog/02-22-2024-open-social-web

[–] unexposedhazard@discuss.tchncs.de 2 points 12 hours ago* (last edited 12 hours ago)

Hmm thanks. It looks like you can set up a server with their protocol but it doesnt use activitypub. So it is technically federated but its not part of the whole mastodon/lemmy/pixelfed/etc fediverse.

This is really shitty and just creates a whole lot of unnecessary work for everyone if they want to reach bluesky users. If you were slightly more cynical you could say they skipped over the Embrace step and are already at the Extend step, trying to split the fediverse.