Bitcoin Miner Bitfarms Ditches BTC for AI After Surprising $46M Loss

Bitfarms, a significant North American publicly traded Bitcoin miner, is formally getting ready to go away the mining enterprise behind.

The corporate introduced Thursday that it’ll wind down its Bitcoin operations over 2026 and 2027 after posting a steep $46 million loss within the third quarter, practically double its $24 million loss throughout the identical interval final 12 months.

Bitcoin mining corporations throughout the U.S. and Canada have been dashing to seize the booming demand for AI compute, however Bitfarms has grow to be the primary main participant to overtly say it plans to desert Bitcoin mining solely.

The corporate will now concentrate on high-performance computing and AI infrastructure.

Bitfarms Abandons Bitcoin Mining Following Deep Losses, Shifts to AI Infrastructure

The corporate detailed its transition plans alongside earnings, revealing that its 18-megawatt facility in Washington State will grow to be the primary Bitfarms web site absolutely transformed to assist HPC and AI workloads.

The ability is predicted to run as much as 190 kilowatts per rack, use superior liquid cooling, and assist validated designs optimized for Nvidia’s next-generation GB300 GPUs.

Bitfarms mentioned it has already signed a completely funded $128 million binding settlement with an American infrastructure supplier for IT tools and supplies for the conversion.

The corporate expects the positioning to be accomplished by December 2026, working at an industry-leading energy utilization effectiveness (PuE) between 1.2 and 1.3.

CEO Ben Gagnon mentioned the Washington facility represents lower than 1% of Bitfarms’ complete developable portfolio however might nonetheless generate extra earnings than the corporate has ever earned from Bitcoin mining.

With practically $1 billion in liquidity, the corporate plans to pursue a GPU-as-a-Service mannequin, which might function the monetary basis as Bitcoin revenues decline.

Bitfarms at present operates 12 knowledge facilities throughout North America with 341 megawatts of put in capability and a 1.3-gigawatt improvement pipeline.

Regardless of confidence in its shift to AI, the corporate’s Q3 outcomes spotlight the monetary pressure of mining in 2025.

Income rose 156% year-over-year to $69 million, although nonetheless under analyst expectations, whereas the corporate mined 520 BTC through the quarter at a median direct price of $48,200.

Based on Bitcoin treasury knowledge, Bitfarms held 1,827 BTC as of Wednesday. Shares of Bitfarms (BITF) fell sharply following the announcement, dropping practically 18% to $2.60 on Thursday and slipping additional in after-hours buying and selling.

The inventory is now down greater than 51% over the past month.

Underneath Monetary Scrutiny, Bitfarms Upsizes Debt Deal and Joins Mining Trade’s AI Pivot

The transition is unfolding throughout a interval of turbulence for the corporate.

Earlier within the 12 months, Bitfarms disclosed accounting errors in its 2022 and 2023 stories, prompting a proposed investor class motion alleging weaknesses in its monetary reporting controls.

The corporate additionally expanded a significant debt financing deal in October, upsizing a deliberate convertible notice sale from $300 million to $500 million as a consequence of robust investor demand.

The notes, maturing in 2031, carry a 30% premium conversion value at $6.86 per share.

The broader mining sector can be shifting. Marathon Digital just lately introduced it could increase into AI compute alongside file income.

IREN signed a multiyear $9.7 billion AI compute cope with Microsoft, giving the tech large entry to its infrastructure.

These strikes mirror the rising view that AI affords increased margins, steadier demand, and fewer regulatory uncertainties than Bitcoin mining.

Bitfarms’ pivot additionally comes throughout a risky interval for the cryptocurrency itself.

Supply: Cryptonews

Bitcoin fell practically 3% over the past 24 hours to $99,441, its lowest stage in six months.

Company accumulation additionally slowed considerably in October, with private and non-private corporations including solely 14,447 BTC, the smallest month-to-month improve of 2025.

Even the biggest treasury holder, Michael Saylor’s Technique, noticed its dominance fall from 75% to 60% amid slower purchases and rising competitors from corporations like Metaplanet and Coinbase.

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