TLDR
- Bitfarms reported Q3 GAAP EPS of -$0.08, missing analyst estimates of -$0.02, while revenue came in at $69.3 million versus expected $84.7 million.
- The company is pivoting from bitcoin mining to become a North American energy and digital infrastructure company, with plans to convert its Washington site for AI workloads.
- Bitfarms mined 520 bitcoins during Q3, below the estimate of 731, with total cash cost per bitcoin rising to $82,400 from $77,100 in Q2.
- The stock dropped 13% in premarket trading following the earnings miss, with shares showing technical weakness and a 14-day RSI of 39.04.
- The company is preparing infrastructure to support Nvidia’s next-generation Vera Rubin GPUs, expected to ship in Q4 2026, which require almost twice the energy density of current Blackwell GPUs.
Bitfarms shares fell sharply in Thursday premarket trading after the company reported third-quarter results that missed expectations on both the top and bottom lines. The stock dropped 13% as investors reacted to weaker-than-anticipated performance.
The company posted a GAAP EPS loss of $0.08 per share. Analysts had expected a smaller loss of $0.02 per share.
In the previous quarter, Bitfarms reported a loss of $0.05 per share. The year-ago quarter also showed a loss of $0.05 per share.
Revenue for Q3 came in at $69.3 million. This fell short of the $84.7 million consensus estimate from analysts.
The revenue figure declined from $77.8 million in the second quarter. However, it jumped from $27.1 million in the same period last year.
Adjusted EBITDA reached $19.6 million for the quarter. This trailed the Visible Alpha consensus of $31.5 million.
The adjusted EBITDA figure grew from $13.7 million in Q2. It also increased from $2.2 million a year earlier.
During Q3, Bitfarms mined 520 bitcoins. This came in below the Visible Alpha estimate of 731 bitcoins.
The mining output matched the 520 bitcoins produced in Q3 2024. It fell from 718 bitcoins in the prior quarter.
Cost Pressures Mount
Total cash cost per bitcoin reached $82,400 during the quarter. This represented an increase from the prior quarter’s cost of $77,100.
The cost per bitcoin also rose substantially from $53,800 in the year-ago period. These rising costs put pressure on the company’s margins.
Gross margin came in at negative 4% for Q3. This showed improvement from negative 7% in Q2.
The gross margin also improved from negative 7% in Q3 2024. Despite the improvement, the company continues to operate with negative margins.
General and administrative expenses decreased to $17.0 million. This dropped from $21.4 million in the previous quarter.
The G&A expenses also fell from $25.3 million in last year’s third quarter. The company has made progress in reducing overhead costs.
Strategic Pivot to AI Infrastructure
CEO Ben Gagnon outlined the company’s strategic direction. “We continue to execute on our strategy to pivot from an international Bitcoin miner to a North American energy and digital infrastructure company,” he stated.
Bitfarms plans to convert its Washington site for high-performance computing and AI workloads. The company is positioning itself for the next generation of artificial intelligence hardware.
The infrastructure being built will support Nvidia’s Vera Rubin GPUs. These next-generation processors are expected to ship in Q4 2026.
Vera Rubin GPUs will require almost twice the energy density of Nvidia’s current Blackwell GPUs. Gagnon noted that existing data centers cannot support this next generation of AI hardware.
The company maintains operations across multiple jurisdictions including Canada, the United States, and Argentina. Bitfarms owns and operates server farms that validate transactions on the Bitcoin blockchain.
Technical indicators show the stock approaching oversold territory with a 14-day RSI of 39.04. The 20-day simple moving average sits at 4.15, above the current trading price.
The company maintains a current ratio of 3.11 and a quick ratio of 3.03. The debt-to-equity ratio stands at 0.11.
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