Bitfarms Stock Plummets 18% Amid Plans to Exit Bitcoin Mining and Shift to AI Infrastructure
Bitfarms Ltd. (BITF) experienced a sharp 18% drop in its stock price, settling at $2.60 before sliding further to $2.51 after hours. The decline followed the company’s announcement to completely exit Bitcoin mining by 2027 and transition to artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
### Financial Performance and Earnings Miss
The move comes on the heels of a brutal Q3 earnings report. Bitfarms posted a $46 million net loss—doubling last year’s $24 million loss—and an 8-cent per share loss that far exceeded analyst expectations of just 2 cents. Although revenue jumped 156% year-over-year to $69 million, it missed estimates by more than 16%. During the quarter, the company mined 520 BTC at an average price of $48,200 and held 1,827 BTC as of Wednesday.
### Strategic Shift to AI Infrastructure
Bitfarms plans to convert all of its Bitcoin mining sites to AI and HPC operations over the next two years. The company’s Washington state facility, representing less than 1% of its portfolio at 18 megawatts, will spearhead this transition, with completion expected by December 2026.
CEO Ben Gagnon expressed optimism about this pivot, stating that the Washington facility “could outperform the company’s entire Bitcoin mining history” once converted to GPU-as-a-Service operations. Bitfarms also secured a $300 million debt facility in October which will help fund the conversion of its Panther Creek, Pennsylvania site.
The Washington facility will be outfitted with Nvidia GB300 chips and cutting-edge liquid cooling technology, underlining the company’s commitment to state-of-the-art AI infrastructure.
### Why U.S. Miners Are Exiting Bitcoin Mining
During the earnings call, Gagnon highlighted the challenges facing American Bitcoin miners: rising mining difficulty and escalating costs have triggered a shift of operations to regions with cheaper energy and lower costs, such as the Middle East, Africa, and Russia. These regions are rapidly expanding their Bitcoin mining capabilities, making it increasingly unprofitable for U.S.-based operators.
Most public miners, who now control roughly one-third of the Bitcoin network, are pivoting toward higher-margin HPC and AI businesses as profit margins in Bitcoin mining shrink.
According to Gagnon, Bitcoin mining “works anywhere,” but AI infrastructure requires prime U.S. locations. Consequently, moving mining operations overseas is less attractive compared to transitioning existing facilities to AI services that promise better returns.
### Industry Trends: Following the Money to AI
Bitfarms is not alone in chasing AI dollars. Bitcoin miner IREN recently secured a massive $9.7 billion deal with Microsoft to provide AI computing power. Similarly, MARA announced plans to expand into AI last week while posting record revenues.
However, Bitfarms stands out as the first major Bitcoin mining company planning a complete exit from the sector.
With 12 data centers across North America and a total energy capacity of 341 megawatts, Bitfarms is well-positioned to repurpose its infrastructure for AI and HPC workloads.
### Market Reaction and Outlook
Shares of Bitfarms have plunged 51% over the past month, tracking the broader weakness in cryptocurrency markets. Bitcoin itself dropped nearly 3% in 24 hours to around $99,441 on Thursday.
Bitfarms plans to complete the wind-down of its Bitcoin mining operations throughout 2026 and 2027, fully embracing the shift toward AI and HPC as the foundation of its future growth strategy.
https://blockonomi.com/bitfarms-bitf-stock-plummets-as-miner-abandons-bitcoin-for-ai/
