Key Takeaways
- Bitfarms plans to exit Bitcoin mining by 2027 and shift entirely to AI/HPC.
- Stock dropped 18% as investors reacted to the strategic overhaul.
- Washington site conversion expected to generate more income than past mining operations.
- Rising mining difficulty pushes US miners toward AI opportunities.
- Q3 losses and revenue miss intensified pressure for transformation.
Bitfarms Plunges 18% as It Unveils Plan to Abandon Bitcoin Mining for AI
Bitfarms shocked investors this week after announcing it will wind down its Bitcoin mining operations over the next two years and fully reposition itself as an AI and high-performance computing (HPC) infrastructure provider. The dramatic strategic shift sent shares tumbling 18%, raising questions about the future of publicly traded mining firms as AI economics eclipse traditional crypto mining.
Also Read : Bitcoin Supply on Exchanges Plunges to 4-Year Low — Is a Bull Run Coming?
Washington Site Becomes the First Major AI Conversion
The first phase of Bitfarms’ transition begins with its 18-megawatt mining site in Washington, which the company plans to fully convert into an AI and HPC data center by December 2026. According to CEO Ben Gagnon, the Washington site represents less than 1% of Bitfarms’ total portfolio—yet its AI-focused redesign could generate more net operating income than the company has ever earned from Bitcoin mining.
Gagnon said the move supports Bitfarms’ plan to wind down mining operations entirely across 2026–2027, marking one of the most aggressive pivots among North American miners.
AI Becomes the “Best Opportunity” for US Miners
Bitfarms isn’t alone. The explosive demand for AI infrastructure has already lured major rivals into multibillion-dollar compute partnerships, such as IREN’s $9.7 billion deal with Microsoft earlier this month.
Also Read: Can Bitcoin Miners Survive 2028 Without Controlling Power?
Gagnon told investors that rising difficulty and costs make Bitcoin mining increasingly unsustainable in the US, pushing miners to cheaper international markets while AI and HPC remain firmly rooted in North America. “The best opportunity for most miners in the United States really is this transition to HPC and AI,” he said.
He added that moving Bitfarms’ mining operations offshore would be inefficient and unlikely to generate better long-term value, reinforcing the company’s strategic shift.
Financial Strains Add Pressure to Transform
The pivot comes as Bitfarms reported a $46 million Q3 loss, nearly doubling last year’s figure and significantly missing analyst expectations. Although revenue grew 156% year-over-year to $69 million, it still fell short of projections. Shares closed at $2.60 following the downturn, sliding another 3.5% after hours.
A High-Risk, High-Reward Reinvention
Bitfarms’ move marks a defining moment for Bitcoin miners navigating a world where AI profitability outpaces crypto economics. While the short-term market reaction is harsh, the long-term upside may hinge on whether Bitfarms can successfully reinvent itself as an AI compute leader.
