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Shares of Bitfarms (BITF) sank nearly 18% on Thursday after the company said it would shutter its bitcoin mining operations over the next two years and convert facilities into AI/high-performance computing (HPC) data centers. The disclosure came alongside a disappointing third-quarter report showing a $46 million net loss, widening from $24 million a year earlier. (Cointelegraph)
AI Pivot Plan
Bitfarms’ 18-megawatt site in Washington state will be the first to undergo a full conversion, with completion targeted for December 2026. CEO Ben Gagnon told investors that the site represents less than 1% of the firm’s developable portfolio yet could generate “more net operating income than we have ever produced with bitcoin mining” once repurposed for GPU-as-a-Service. The company expects to wind down the remainder of its mining footprint through 2026–2027, joining rivals such as IREN, which recently inked a $9.7 billion Microsoft AI compute deal, in chasing higher-margin workloads.
Financial Snapshot
- Losses: Q3 net loss of $46 million, or $0.08 per share, versus Wall Street expectations for a $0.02 loss.
- Revenue: $69 million, up 156% year over year but still 16% below analyst estimates.
- Production: 520 BTC mined at an average direct cost of $48,200 per coin; the company held 1,827 BTC as of Nov. 12.
The weak print and pivot announcement drove BITF shares down to $2.60, with after-hours trading extending losses another 3.5% to $2.51.
Why Pivot Now?
Gagnon argued that U.S.-listed miners already account for roughly one-third of global hash rate and are “keen on moving over to the higher economics associated with HPC and AI.” Bitcoin mining’s location-agnostic nature makes it easier to relocate to cheaper jurisdictions, while AI compute commands premium pricing inside the U.S. He also noted that opportunities to redeploy traditional mining capacity “are really few” and not a good use of management attention.
Outlook
Bitfarms still sees bitcoin mining growth in the Middle East, Africa, and Russia, but is choosing to monetize North American assets now and redeploy capital into AI infrastructure. Investors will watch whether the company can execute the expensive retrofit without starving its existing BTC operations of cash flow—especially with the 2026 halving cycle looming.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.