Bitfarms Stock Falls as Company Shifts From Bitcoin Mining to AI Infrastructure

Bitfarms shares tumbled on Thursday after the company revealed a sweeping plan to wind down its Bitcoin mining business and transition its facilities into AI and high-compute data centers over the next two years. 

The move marks one of the most significant pivots yet by a major U.S.-listed crypto mining firm as economic pressures and rising competition reshape the industry.

The first step in Bitfarms’ overhaul will be the full conversion of its 18-megawatt mining site in Washington state. The company expects the facility to be redesigned for AI and HPC workloads by December 2026.

CEO Ben Gagnon said the Washington site, while only a small fraction of the firm’s development footprint, could become more profitable than the company’s entire historical Bitcoin mining output. 

“We believe the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining,” he said. The shift is expected to support Bitfarms as it gradually exits the Bitcoin mining sector through 2027.

Industry-Wide Pivot Toward AI

Bitfarms is not alone in rethinking its business model. Several major mining companies have begun transitioning portions of their infrastructure toward AI computing as demand for high-end processing soars. Earlier this month, competitor IREN struck a $9.7 billion agreement with Microsoft to provide the tech giant access to its AI compute capacity.

Gagnon told investors that U.S.-based miners are increasingly under pressure as Bitcoin mining grows more expensive and competitive. He noted that mining growth is shifting to regions such as the Middle East, Africa, and Russia, where energy costs are lower and regulatory demands are lighter.

“The best opportunity for most miners in the United States really is this transition to HPC and AI,” Gagnon said. He further added that the economics of AI infrastructure make remaining in traditional mining less compelling. As a result, he said relocating Bitfarms’ mining operations would offer limited strategic benefit.

Bitfarms Reports Weaker Earnings

The announcement accompanied weaker-than-expected third quarter results. Bitfarms reported a $46 million net loss, deeper than the $24 million loss a year earlier. This means a loss of eight cents per share, well below analyst expectations. Revenue rose 156% year over year to $69 million but still missed forecasts by more than 16%.

The company mined 520 BTC during the quarter at an average direct cost of $48,200 per coin and held 1,827 BTC as of Wednesday. 

Despite the operational gains, investors reacted sharply to the strategic shift and financial results. Bitfarms’ stock (BITF) closed down nearly 18% on Thursday at $2.60.