Bitfarms Dumps Bitcoin Mining, Bets Big on AI and High-Performance Computing
Bitfarms Shares Plunge 18% as Company Announces Exit From Bitcoin Mining to Focus on AI and HPC
Bitfarms Inc., a publicly traded cryptocurrency miner, sent shockwaves through the market this week after revealing a major strategic pivot: the company plans to gradually exit Bitcoin mining and convert its global mining facilities into high-performance computing (HPC) and Artificial Intelligence (AI) data centers over the next two years.
The announcement triggered an immediate sell-off, with Bitfarms’ shares plunging 18% to $2.60 during Thursday’s trading session, followed by an additional 3.5% decline in after-hours trading. Investors reacted sharply to the news, signaling widespread uncertainty over the firm’s ability to successfully execute such a transformative plan.
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| Source: Wu Blockchain X |
Washington Facility to Lead the Transition
Bitfarms confirmed that its 18-megawatt Washington state mining facility will be the first site to undergo a full conversion. By December 2026, the facility is expected to operate exclusively as an AI and HPC hub. The move reflects a broader trend among cryptocurrency miners who are reconsidering traditional BTC operations in the face of rising costs and diminishing returns.
CEO Ben Gagnon emphasized the potential economic benefits of this strategic shift. “Despite being less than one percent of our total developable portfolio, the Washington site alone may outperform our historical Bitcoin mining revenue,” Gagnon stated. He also highlighted that converting mining operations into GPU-as-a-Service offerings could generate more stable and higher-margin revenue streams than conventional Bitcoin mining.
Rising Costs and Shrinking Margins Drive Strategic Pivot
Gagnon cited multiple factors behind Bitfarms’ decision. U.S.-based Bitcoin miners are facing increasingly difficult mining conditions, including rising network difficulty, soaring energy costs, and declining profit margins. The challenges are prompting miners to explore relocation options in regions with lower energy expenses, such as the Middle East, Africa, and parts of Russia.
“Bitcoin mining is becoming less economically viable in the United States, particularly in high-energy-cost states. We have to adapt,” Gagnon explained. “By focusing on AI and HPC, we can leverage the U.S. market’s demand for computing power without being constrained by geographic energy costs.”
AI and HPC: A More Lucrative Market
The demand for AI and high-performance computing in the U.S. is experiencing rapid growth, driven by cloud computing expansion, increased AI model training requirements, and unprecedented GPU demand. Bitfarms sees this as a more sustainable and profitable long-term opportunity compared to the increasingly unpredictable Bitcoin mining sector.
“The U.S. represents one of the best markets for AI and HPC investment,” Gagnon said. “Transitioning to compute services provides more predictable revenue and reduces exposure to the volatility of cryptocurrency markets.”
Industry Trend: Miners Pivoting Toward AI Compute
Bitfarms is part of a broader industry trend. Earlier this month, IREN, another Bitcoin mining company, signed a landmark $9.7 billion agreement with Microsoft to supply long-term AI compute capacity. Gagnon noted that many mining companies are exploring similar avenues, seeing AI and HPC as the next frontier for growth.
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| Source: Google Finance |
“The sector is evolving. Miners who continue to focus solely on cryptocurrency are facing compressed margins. The shift toward AI compute represents one of the strongest opportunities in the U.S. mining space today,” he said.
Financial Performance Adds Pressure
The strategic pivot comes amid financial strain. Bitfarms reported a net loss of $46 million in Q3 2025, nearly double its $24 million loss in the same quarter last year. Revenue rose 156% year-over-year to $69 million but fell short of analyst expectations.
The company mined 520 BTC during the quarter at an average cost of $48,200 per coin and held 1,827 BTC at quarter-end. Despite revenue growth, the combination of elevated expenses, falling BTC margins, and the ambitious AI pivot contributed to the sharp decline in the stock price.
Market Reaction and Investor Sentiment
Investors reacted cautiously to Bitfarms’ plan, questioning whether the firm could successfully manage the technical and operational challenges associated with such a large-scale transformation. Analysts noted that while AI and HPC markets are lucrative, they require specialized knowledge, infrastructure investment, and operational agility—areas where cryptocurrency mining experience may not fully translate.
Nevertheless, some market watchers view Bitfarms’ pivot as forward-looking. “Transitioning to AI and HPC is a bold but necessary step,” said an industry analyst. “Bitcoin mining margins are compressed, and the future lies in diversified compute services.”
Implications for the Cryptocurrency Mining Industry
Bitfarms’ decision underscores a broader shift in the cryptocurrency mining landscape. Rising energy costs, regulatory pressures, and declining profitability are forcing miners to reconsider traditional BTC operations. The company’s move could signal a turning point, encouraging other miners to explore alternative revenue streams beyond cryptocurrency.
The pivot also reflects the growing convergence between blockchain technology and AI compute infrastructure. By leveraging existing expertise in high-performance digital operations, companies like Bitfarms can potentially tap into the booming AI market while reducing exposure to cryptocurrency volatility.
Looking Ahead: Bitfarms’ Roadmap
Bitfarms plans to phase out Bitcoin mining operations entirely by 2027 while ramping up AI and HPC capabilities across its global facilities. The Washington site will serve as the blueprint for this transition, and other facilities are expected to follow a similar timeline.
CEO Gagnon emphasized that the company is focused on long-term value creation, not short-term stock price movements. “Our mission is to build a sustainable, diversified business that leverages emerging technologies and maximizes returns for shareholders,” he said.
Conclusion
Bitfarms’ stock plunge highlights the market’s immediate reaction to uncertainty, but the company’s strategic shift toward AI and HPC reflects a calculated effort to adapt to industry trends. Rising Bitcoin mining costs and shrinking margins, coupled with explosive demand for AI compute, make the move a logical step for forward-looking miners.
As the industry evolves, Bitfarms’ transition could serve as a bellwether, illustrating how cryptocurrency companies can pivot into emerging technology sectors to secure long-term growth. Investors, analysts, and industry observers will be watching closely to see whether the company can successfully execute its ambitious plan.
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