In brief
- Publicly traded Bitcoin miner Bitfarms posted a $46 million loss in Q3.
- The firm is beginning a transition out of the mining business, shifting focus to providing infrastructure for AI compute.
- Bitcoin mining operations will be wound down over 2026-2027.
Publicly traded Bitcoin miner Bitfarms will wind down its BTC operations and pivot to AI infrastructure, the firm announced on Thursday.
The announcement comes alongside the firm’s third-quarter earnings, in which it posted a net loss of $46 million, compared to a net loss of $24 million in Q3 2024 from its Bitcoin business.
“We continue executing on our HPC/AI infrastructure development strategy with a fully funded supply chain and plan to convert our Washington site to support Nvidia GB300s with state-of-the-art liquid cooling,” said Bitfarms CEO Ben Gagnon, in a statement.
“Despite being less than 1% of our total developable portfolio, we believe that 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 added.
Gagnon added that the firm would look to “wind down” its Bitcoin mining business throughout 2026 and 2027.
Bitfarms, which operates 12 data centers across North America with an energy capacity of 341 megawatts (MW), is confident in its ability to make the transition successfully.
“With consistent inbound demand for our sites, we have high conviction in the value of our unique energy portfolio, the demand for our power, and our ability to develop next-generation HPC and AI infrastructure,” said Gagnon on the firm’s Q3 earnings call.
The firm recently converted a $300 million debt facility in October for the financing of a site in Panther Creek, Pennsylvania, which it expects will allow it to capitalize on demand for AI infrastructure.
Shares of BITF finished the trading day down about 18% on Thursday amid the news, changing hands at $2.60. The slip is part of an extended loss over the last month in which shares have fallen more than 51%.
The soon-to-be former Bitcoin miner is not the only one looking to AI for its next play. Last week, Bitcoin miner MARA announced that alongside record high revenues it would be expanding its services to include a focus on AI compute.
Many Bitcoin mining firms have embraced the growing AI opportunity in recent months, but Bitfirms is the first major player to say it plans to abandon its original business focus.
A representative for Bitfarms did not immediately respond to Decrypt’s request for comment.
Bitcoin has fallen nearly 3% in the last 24 hours and is now trading at $99,441 after falling to its lowest price in six months earlier Thursday.
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