TLDR
- Bitfarms shares collapsed 18% to $2.60 after announcing a complete shutdown of Bitcoin mining operations by 2027 to focus on AI infrastructure.
- The company’s Q3 results showed a $46 million loss, twice the prior year’s loss, while revenue of $69 million missed expectations by 16%.
- The Washington state mining site will convert first by December 2026, with CEO claiming AI operations could exceed all past Bitcoin mining profits.
- Gagnon said US miners face better economics in AI than Bitcoin mining, which is moving to cheaper locations in the Middle East, Africa and Russia.
- Bitfarms becomes the first major Bitcoin miner to announce a full exit from crypto operations as the industry increasingly pivots toward AI.
Bitfarms delivered a gut punch to investors Thursday as the stock dropped 18% on news of a complete Bitcoin mining shutdown. Shares closed at $2.60 and fell further to $2.51 in extended trading.
The miner will transform all Bitcoin operations into artificial intelligence and high-performance computing facilities. This overhaul will happen throughout 2026 and 2027.
The company’s Washington state location will convert first. The 18-megawatt facility should be running AI operations by December 2026.
CEO Ben Gagnon said this single site could generate more net operating income than Bitfarms has ever made from Bitcoin mining. The Washington location accounts for less than 1% of the company’s developable portfolio.
The announcement dropped alongside dismal Q3 financials. Bitfarms lost $46 million in the quarter compared to a $24 million loss the previous year.
The per-share loss hit 8 cents versus analyst predictions of just 2 cents. Revenue climbed 156% to $69 million but still missed estimates by over 16%.
The company produced 520 BTC at an average cost of $48,200 per coin. Bitfarms held 1,827 BTC as of Wednesday.
The Math Behind Ditching Bitcoin
Gagnon explained why American Bitcoin miners are heading for the exits. Mining difficulty keeps climbing while profitability drops.
Public miners control about one-third of the Bitcoin network. Nearly all are looking at transitions to HPC and AI services where margins are better.
Bitcoin mining is booming in cheaper markets overseas. The Middle East, Africa and Russia are seeing major growth in mining operations.
The CEO said US miners have a clear path forward through AI and high-performance computing. America offers the best market for these services while Bitcoin mining can operate from remote low-cost locations.
Gagnon dismissed the idea of moving Bitfarms’ mining equipment elsewhere. He called it a poor use of management time and company resources.
Racing Toward AI Revenue
Other Bitcoin miners are testing AI waters but none have gone as far as Bitfarms. IREN signed a $9.7 billion deal with Microsoft in November for AI computing services.
MARA revealed AI expansion plans last week alongside record revenue numbers. Bitfarms stands alone as the first major miner planning a complete crypto exit.
The company runs 12 data centers across North America with 341 megawatts of energy capacity. Bitfarms secured $300 million in debt financing in October for its Panther Creek, Pennsylvania location.
Converting Infrastructure to AI
The Washington site will use Nvidia GB300 processors with advanced liquid cooling systems. Gagnon said the company receives consistent demand for its facilities and power capacity.
Bitfarms has high confidence in its energy portfolio value and ability to build next-generation AI infrastructure. The company sees strong market demand for its power resources.
Shares have tumbled 51% over the last month as crypto markets weakened. Bitcoin fell nearly 3% in 24 hours Thursday to trade around $99,441.
The company will complete its Bitcoin mining wind-down across 2026 and 2027 as it transitions to AI operations.
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