Bit farms will ‘wind down’ Bitcoin mining and switch to AI after losing $46 million

Listed Bitcoin miner Bitfarms will scale down its BTC operations and focus on AI infrastructure, the company announced Thursday.

The announcement comes alongside the company’s third-quarter earnings, in which it posted a net loss of $46 million, compared to a net loss of $24 million in the third quarter of 2024 on its Bitcoin business.

“We continue to execute our HPC/AI infrastructure development strategy with a fully funded supply chain and plan to convert our Washington location to support Nvidia GB300s with state-of-the-art liquid cooling,” said Ben Gagnon, CEO of Bitfarms, in a statement.

“Despite being less than 1% of our total developable portfolio, we believe that converting just our Washington location to GPU-as-a-service could potentially generate more net operating income than we have ever generated from Bitcoin mining,” he added.

Gagnon added that the company aims to “wind down” its Bitcoin mining operations in 2026 and 2027.

Bitfarms, which operates 12 data centers in North America with an energy capacity of 341 megawatts (MW), is confident it can make the transition successful.

“With consistent inbound demand at our sites, we strongly believe in the value of our unique energy portfolio, the demand for our energy and our ability to develop next-generation HPC and AI infrastructure,” Gagnon said during the company’s Q3 earnings call.

The company recently converted a $300 million debt facility in October to finance a site in Panther Creek, Pennsylvania, which is expected to help the company capitalize on demand for AI infrastructure.

Shares of BITF ended the trading day Thursday down about 18% amid the news, changing hands to $2.60. The skid is part of a prolonged slide over the past month, during which shares have fallen more than 51%.

The soon-to-be former Bitcoin miner isn’t the only one looking to use AI for his next game. Last week Bitcoin miner MARA announced this in addition to record high revenues it would expand its services with a focus on AI computing.

Many Bitcoin mining companies have embraced growing AI capabilities in recent months, but Bitfirms is the first major player to say it plans to abandon its original business focus.

A Bitfarms representative did not immediately respond Declutter request for comment.

Bitcoin has fallen nearly 3% in the past 24 hours and is now trading at $99,441, after falling to its lowest price in six months earlier Thursday.