Bitfarms Dips 18% as It Shutters Bitcoin Mining for AI-What Could Go Wrong?

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Bitfarms, that once shining beacon of Bitcoin mining, has taken quite the tumble after the company revealed its bold plan to wind down its Bitcoin operations in favor of something “more future-facing”-artificial intelligence and high-compute data centers. How very modern!

On Thursday, Bitfarms announced that its 18-megawatt Bitcoin mining site in the lovely state of Washington would be the first to undergo this dramatic transformation. The new AI and HPC (high-performance computing) venture is expected to be completed by December 2026. Apparently, the company’s very small Washington site (less than 1% of its total portfolio) will be the golden goose that keeps them afloat. Because, of course, transitioning from cryptocurrency to AI is the “best opportunity” for any Bitcoin miner. Who wouldn’t want to throw away all that lovely crypto mining revenue in favor of more “advanced” data centers?

Ben Gagnon, the ever-optimistic CEO of Bitfarms, claimed the Washington conversion could bring in more operating income than Bitcoin mining ever could. He must be a real optimist, given that Bitcoin was supposed to change the world, but hey, let’s embrace the future, right? 🧠💸

And as if to reinforce the brilliant decision-making, Gagnon added that the shift would help the company gracefully bow out of Bitcoin mining by 2026-2027. How convenient, right? Just in time for the next big thing! 🎉

But wait-Bitfarms isn’t the only one seeing the light. Their crypto mining rivals have also been hopping on the AI bandwagon. In fact, earlier this month, Bitcoin miner IREN sealed a multi-billion-dollar deal with Microsoft. Yes, that’s right-$9.7 billion. Apparently, AI is where the smart money is going these days.

AI “best opportunity” for most US Bitcoin miners: CEO

According to Gagnon, Bitcoin miners in the US are packing their bags and heading to greener pastures-well, lower-cost jurisdictions. It seems that mining Bitcoin is becoming too expensive, and “public miners” (aka those of us who never struck it rich) are all too eager to embrace the much higher economics of HPC and AI. Of course, we all knew Bitcoin was a fleeting dream. Let’s just hope the AI revolution is less of a pipe dream than cryptocurrency was, shall we? 🤞

Gagnon elaborated further, mentioning that Bitcoin mining has seen significant growth in regions like the Middle East, Africa, and Russia. Meanwhile, the US market seems much more interested in AI and high-performance computing. Which, let’s be honest, is way more sophisticated than chasing after digital coins in remote locations. 🏙️

“The economics are really going to drive that forward,” Gagnon said. Yes, indeed. The US is apparently the best place for HPC and AI investments-who would’ve thought? Bitcoin mining, meanwhile, is, in his words, “largely location-agnostic” (aka happy to live anywhere, even in places that are a bit too “adventurous”).

But, of course, Gagnon doesn’t believe Bitfarms should spend its resources trying to relocate its Bitcoin mining operations. Instead, they’ll “bring forward estimated free cash flow” into more productive investments. Could there be a better use of their time? Apparently not. 🙄

Bitfarms posts Q3 loss, misses on revenue

As if the dramatic pivot weren’t enough to raise eyebrows, Bitfarms also reported a net loss of $46 million for Q3-double what they lost a year ago. Their losses per share came in at 8 cents, which was a bit worse than analysts expected. Because why not? 💸

The company did manage to increase its revenue by 156% year-over-year (impressive, I suppose), but still missed the analyst estimates by over 16%. Don’t worry though-Bitfarms earned 520 BTC at an average cost of $48,200 each. Not exactly the windfall of dreams, but it’s something.

Unfortunately, shares of Bitfarms (BITF) dropped a staggering 18% after the announcement, with losses continuing into after-hours trading. Not the kind of news investors hope for, but hey, it’s all part of the ride, right?

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2025-11-14 06:21