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

Bitfarms, a serious North American publicly traded Bitcoin miner, is formally getting ready to depart the mining enterprise behind.

The firm announced Thursday that it’s going to wind down its Bitcoin operations over 2026 and 2027 after posting a steep $46 million loss within the third quarter, almost 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 completely.

The firm will now deal with high-performance computing and AI infrastructure.

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

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

The facility 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 stated it has already signed a totally funded $128 million binding settlement with an American infrastructure supplier for IT gear and supplies for the conversion.

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

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

With almost $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 growth pipeline.

Despite confidence in its shift to AI, the company’s Q3 results spotlight the monetary pressure of mining in 2025.

Revenue rose 156% year-over-year to $69 million, although nonetheless below analyst expectations, whereas the corporate mined 520 BTC through the quarter at a mean direct value of $48,200.

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

The inventory is now down greater than 51% during the last month.

Under Financial Scrutiny, Bitfarms Upsizes Debt Deal and Joins Mining Industry’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 studies, prompting a proposed investor class action alleging weaknesses in its monetary reporting controls.

The firm additionally expanded a serious debt financing deal in October, upsizing a planned convertible note sale from $300 million to $500 million attributable to sturdy investor demand.

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

The broader mining sector can also be shifting. Marathon Digital recently announced it will develop into AI compute alongside report income.

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

These strikes replicate the rising view that AI gives larger margins, steadier demand, and fewer regulatory uncertainties than Bitcoin mining.

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

Source: Cryptonews

Bitcoin fell almost 3% during the last 24 hours to $99,441, its lowest degree in six months.

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

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

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