Key Highlights
- Bitfarms reported Q3 revenue of $69M—well below expectations and a wider $46M loss, sending shares down nearly 19%.
- The company will fully exit Bitcoin mining in 2026–2027 and convert sites, including a major Washington facility, into AI and HPC data centers.
- Despite strong liquidity, investors are skeptical about the long transition timeline and execution risks in its ambitious AI pivot.
Bitfarms Ltd., a Toronto-based Bitcoin mining company and one of the largest players in the crypto-mining sector, saw its shares plunge almost 19% on Thursday after reporting a wider third-quarter loss, missing analyst expectations, and announcing a sweeping plan to exit Bitcoin mining in favor of high-performance computing (HPC) and artificial intelligence (AI) data-center services.
Bitfarms reported third-quarter (Q3) revenue of $69 million, a 156% year-over-year increase, but still around 15% below Wall Street expectations, which were set at $85 million.
Earnings miss and mounting losses trigger sell-off
The company posted a net loss of $46 million, or $0.08 per share, compared to a loss of $24 million a year ago. Its operating loss came in at $29 million, which included a $9 million impairment charge and $27 million in non-cash depreciation.
Analysts had expected a much smaller loss of $0.02 per share, making the miss on both revenue and earnings a major factor behind the stock decline.
Shares fell sharply throughout the morning and closed the day down nearly 19% at $2.60, extending a month-long slide of more than 51%. Despite Thursday’s plunge, the stock remains up nearly 70% year-to-date, driven mostly by a rally in mining stocks earlier this year.
Liquidity and mining performance
As of November 12, Bitfarms reported $814 million in total liquidity, including $637 million in cash and $177 million in unencumbered Bitcoin.
The miner produced 520 BTC during the quarter at an average direct cost of $48,200 per coin and was holding 1,827 BTC as of that date. But even with this level of liquidity, the company has been feeling pressure on profitability as mining costs keep rising, margins continue to shrink, and Bitcoin’s price has stayed mostly flat.
Bitfarms announces major pivot: Winding down Bitcoin mining
The biggest development came with Bitfarms’ announcement that it plans to wind down its Bitcoin mining business entirely by 2026 and 2027.
The company has begun shifting toward becoming a North American HPC and AI infrastructure provider.
One of the major parts of this shift is Bitfarms’ plan to turn its 18-megawatt mining site in Washington State into a high-power AI and HPC data center, with the goal of finishing the project by December 2026.
The upgraded site will support up to 190 kW per rack and use advanced liquid cooling, making it capable of hosting next-generation Nvidia GPUs.
Bitfarms said it signed a binding $128 million agreement with a major American publicly traded infrastructure provider to support the conversion.
CEO Ben Gagnon emphasized how transformative the shift could be, stating: “We continue to execute on our strategy to pivot from an international Bitcoin miner to a North American energy and digital infrastructure company.”
He added: “Despite being less than 1% of our total developable portfolio, we believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining.”
Gagnon also said the company is building infrastructure designed for Nvidia’s upcoming Vera Rubin GPUs, expected to ship in late 2026, noting their energy density will exceed that of current Blackwell-generation chips.
Bitcoin miners rush toward AI
Bitfarms is the first major miner to declare a full phase-out of Bitcoin mining. Others like Cipher, Terawulf, and Marathon Digital (MARA) have added AI-related services, but none have abandoned mining altogether.
These pivots have attracted major investors, including SoftBank and Google, into the data-center space, with projections of billions in potential revenue for firms that can deliver large-scale AI compute.
Market confidence shaken despite future plans
While the company outlined big ambitions in AI data-center development, investors reacted negatively for several reasons:
The weaker-than-expected quarter raised fresh concerns about Bitfarms’ near-term cash situation.
Investors are unsure how long the AI pivot will take to start producing meaningful revenue, adding doubt around the company’s transition timeline.
There is ongoing skepticism about the cost and difficulty of converting existing mining sites into advanced GPU facilities.
Bitcoin mining stocks have been under pressure in general, with analysts noting that miners have recently decoupled from Bitcoin’s price, weighing on the whole sector.
The sudden announcement that Bitfarms plans to wind down its main Bitcoin mining business added to the uncertainty and sped up the sell-off.
Conclusion
Bitfarms’ stock drop of nearly 19% reflects deep investor uncertainty as the company embarks on a dramatic transformation. While management argues that AI infrastructure could ultimately generate far greater income than Bitcoin mining ever has, the market is questioning both the timeline and execution risk.
For now, Bitfarms’ future depends on its ability to turn its energy assets and data-center plans into a profitable foothold in the rapidly growing AI compute industry.
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