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Hassan Shittu
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Hassan Shittu
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Bitfarms, a large publicly traded Bitcoin miner in North America, is officially preparing to leave the mining business.
The company announced Thursday that it will reduce its Bitcoin operations in 2026 and 2027 after posting a strong loss of $ 46 million in the third quarter, almost double its loss of $ 24 million during the same period last year.
Bitcoin mining companies in the United States and Canada have rushed to capture the growing demand computer AIBut Bitfarms has become the first major player to openly say it plans to quit Bitcoin mining entirely.
The company will now focus on artificial intelligence infrastructures and high-performance computing.
Bitfarms abandons Bitcoin mining after deep losses, switches to AI infrastructure
The company detailed its transition plans alongside earnings, revealing that its 18-megawatt facility in Washington State will become the first Bitfarms site fully converted to support HPC and AI workloads.
The facility is expected to run up to 190 kilowatts per rack, use advanced liquid cooling, and support validated designs optimized for Nvidia’s next-generation GB300 GPUs.
Bitfarms said it has already signed a $128 million fully funded binding agreement with an American infrastructure provider for IT equipment and materials for the conversion.
The company expects the site to be complete by December 2026, operating at an industry-leading power usage efficiency (PuE) of between 1.2 and 1.3.
CEO Ben Gagnon said the Washington facility represents less than 1% of Bitfarms’ developable portfolio, but could still generate more revenue than the company has ever earned from Bitcoin mining.
With almost $1 billion in liquidity, the company plans to pursue a GPU-as-a-Service model, which could serve as the financial foundation as Bitcoin revenues decline.
Bitfarms currently operates 12 data centers in North America with 341 megawatts of installed capacity and a development pipeline of 1.3 gigawatts.
Despite the confidence in its shift to AI, the the company’s Q3 results highlight the financial strain of mining in 2025.
Revenue rose 156% year over year to $69 million, though still below analyst expectations, while the company mined 520 BTC during the quarter at an average direct cost of $48,200.
Second at Bitcoin treasury data, Bitfarms held 1,827 BTC as of Wednesday. Shares of Bitfarms (BITF) fell sharply after the announcement, falling nearly 18% to $2.60 on Thursday and slipping more in after-hours trading.
The stock is now down more than 51% over the last month.
Under Financial Scrutiny, Bitfarms Raises Debt Agreement and Joins Mining Industry Pivot AI
The transition unfolds during a period of turmoil for the company.
Earlier this year, Bitfarms disclosed accounting errors in its 2022 and 2023 reports, induce an investor class action proposal alleging weaknesses in its financial reporting controls.
The company also extended a major debt financing deal in October, upsizing a expected convertible note sale from $300 million to $500 million due to strong investor demand.
The notes, which mature in 2031, carry a 30% premium conversion price to $6.86 per share.
The wider mining sector is also changing. Digital marathon recently announced it expands into AI computing alongside record revenues.
IREN signed a $9.7 billion multi-year AI computing agreement with Microsoft, giving the tech giant access to its infrastructure.
These moves reflect the growing view that AI offers higher margins, steadier demand, and fewer regulatory uncertainties than Bitcoin mining.
Bitfarms’ pivot also comes during a volatile period for cryptocurrency itself.
Source: Cryptonews
Bitcoin fell almost 3% in the last 24 hours to $99,441, its lowest level in six months.
Corporate hoarding also slowed significantly in October, with public and private companies adding just 14,447 BTC, the smallest monthly increase since 2025.
Even the biggest treasury holder, Michael Saylor’s Strategy, has seen its dominance drop from 75% to 60% amid slower acquisitions and increasing competition from firms like Metaplanet and Coinbase.
