Move toward AI and high-compute data centers marks a major shift in strategy
Bitfarms’ shares fell sharply on Thursday after the company revealed a dramatic restructuring plan that will see it phase out its Bitcoin mining business over the next two years and convert its facilities into AI and high-performance computing (HPC) centers. The announcement triggered a sell-off, sending the stock down nearly 18% during regular trading hours and deeper into losses after the close.
The first site set for transition is Bitfarms’ 18-megawatt facility in Washington, which will be fully repurposed for GPU-driven AI workloads by December 2026. According to the company, this move is the starting point of a broader exit from Bitcoin mining by 2027.
Bitfarms CEO Ben Gagnon said the conversion of a single site could outperform years of mining output.
“Despite being less than 1% of our developable portfolio, converting just the Washington site to GPU-as-a-Service could generate more net operating income than we’ve ever achieved with Bitcoin mining,” Gagnon said. He noted that this shift will support the company as it winds down its mining operations in 2026–2027.
Ben Gagnon speaking on stage at a Las Vegas Bitcoin conference in April. : YouTube
Miners pivot to AI amid rising costs
Bitfarms is not alone. Several U.S. mining companies have started redirecting infrastructure toward AI as demand for compute power surges. Earlier this month, miner IREN secured a multi-year $9.7 billion AI compute agreement with Microsoft, reflecting how quickly the sector is recalibrating.
Gagnon explained that Bitcoin mining economics are tightening, pushing miners toward lower-cost regions abroad.
“Public miners represent almost a third of the network, and they’re increasingly drawn to the stronger economics of HPC and AI,” he said.
He added that mining activity is expanding across the Middle East, Africa, and Russia while U.S. miners face higher operational costs.
“The best opportunity for most miners in the United States really is this transition to HPC and AI,” he said. “Bitcoin mining is location-agnostic, but HPC and AI thrive in the U.S. market.”
Bitfarms sank by nearly 18% on Thursday as its Q3 results reported $46 million in losses. : Google Finance
Financial results deepen pressure
The strategic pivot came alongside weaker quarterly results. Bitfarms reported a $46 million net loss in Q3, significantly wider than last year’s $24 million loss. Revenue rose 156% year-over-year to $69 million, but still missed expectations by more than 16%.
The company said it produced 520 BTC during the quarter at an average direct cost of $48,200, and held 1,827 BTC as of Wednesday.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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