Bitfarms Reports $46 Million Loss and Shift from Mining to AI

Bitfarms shifts focus from mining to AI amid $46M loss.

Bitfarms announced a gradual cessation of its cryptocurrency mining operations in favor of developing infrastructure for artificial intelligence. 

The first step involves repurposing an 18 MW farm in Washington State. The new project plans for up to 190 kW per rack, with completion expected by December 2026.

“Although this facility represents less than 1% of our overall portfolio, we believe its conversion to a ‘GPU-as-a-Service’ model could potentially yield more net operating profit than Bitcoin mining,” said Bitfarms CEO Ben Gagnon.

The firm has entered into an agreement with an unnamed American data center infrastructure provider. The deal is valued at $128 million. 

The partner will supply IT equipment and construction materials for facilities with a total capacity of 18 MW.

Bitfarms is expected to fully reorganize its business by 2027. 

Mining Becomes Unprofitable 

The announcement coincided with the release of the third-quarter report. The company reported a net loss of $46 million compared to $24 million the previous year.

Bitfarms’ revenue grew by 156% year-on-year to $69 million, yet fell 16% short of analysts’ expectations.

In the last quarter, the firm mined 520 BTC at an average cost of $48,200. It currently holds 1116 BTC (~$108 million at the current rate). 

Bitfarms ranks 44th among the largest holders of the leading cryptocurrency among public companies. 

The miner’s shares fell nearly 18% in a day to $2.6, and over the past week, they have dropped more than 50%. 

Back in November, the CEO of MARA predicted tough times for miners due to increasing competition and declining profitability.