Bitcoin Miner Bitfarms (BITF) to Exit Bitcoin Mining, Pivot to AI Computing
Bitfarms, a leading North American Bitcoin miner, has announced plans to gradually phase out its Bitcoin mining operations over the next two years and pivot to high-performance computing (HPC) and artificial intelligence (AI) infrastructure. The company aims to convert its Washington State facility into a GPU-as-a-Service hub equipped with Nvidia GB300 GPUs, supported by a $128 million deal with a U.S.-based partner, targeting completion by December 2026. CEO Ben Gagnon stated this shift could generate higher net operating income than Bitcoin mining. Bitfarms’ decision reflects industry trends as miners adapt to falling Bitcoin prices and shrinking profit margins. Despite financial pressures, including a $46 million Q3 loss, the company is pursuing revenue from AI-related services like colocation and cloud computing, leveraging its energy portfolio and infrastructure across North America. However, the transition carries risks such as delays and economic uncertainties.
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Bitfarms Shifts Focus from Bitcoin Mining to AI and HPC
Bitfarms, one of North America’s largest Bitcoin miners, announced it will gradually wind down its mining operations over the next two years. The company plans to shift its focus to high-performance computing (HPC) and artificial intelligence (AI) infrastructure. This decision marks a significant strategic pivot for the company.
Market Trends Driving the Shift
The move reflects a broader trend among crypto miners. Falling Bitcoin prices and shrinking profit margins are pushing operators to explore more stable revenue streams. As part of this shift, Bitfarms’ Toronto-based operations are set to focus on GPU-as-a-Service offerings and cloud computing solutions to diversify their business model.
Washington Facility Conversion
Bitfarms’ Washington State facility will be its first fully converted site. The 18 MW mining farm will be retrofitted to support Nvidia GB300 GPUs with advanced liquid cooling technology. The company has secured a $128 million fully funded deal with a major U.S.-based data center partner to supply all necessary equipment and materials. This conversion is expected to be completed by December 2026.
CEO’s Outlook on Revenue Potential
CEO Ben Gagnon emphasized the financial benefits of this pivot: “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. This provides a strong cashflow foundation to fund operational costs, general administration, and debt services as we wind down our Bitcoin mining business in 2026 and 2027.”
Industry-Wide Shift to AI Computing
Bitfarms is not alone in this transition. Other miners, such as Cipher and Terawulf, are forming partnerships with major investors like SoftBank and Google to develop AI-ready data centers. These ventures are projected to generate billions in revenue while securing additional capital through debt financing.
Financial Challenges and Strategic Benefits
Bitfarms’ pivot comes amid financial pressures. The company reported a $46 million third-quarter loss on $68 million in revenue. Shares fell approximately 5.7% in early trading, although the stock has still doubled in value this year. The Washington site will feature modular infrastructure for scalable deployment and high-efficiency power management, positioning Bitfarms as a provider of AI compute services rather than solely cryptocurrency infrastructure.
Opportunities and Risks in the New Focus
Bitfarms’ broader energy portfolio totals 2.1 GW across North America, with sites in regions boasting strong access to power and fiber infrastructure. This makes the shift to AI workloads a natural extension of its existing capabilities. However, the company acknowledges potential risks, including project delays, underperforming equipment, or suboptimal economics for GPU-as-a-Service. Bitfarms must execute meticulously to overcome these challenges and capitalize on the emerging AI computing market.