Bitfarms shares took a massive hit, dropping nearly 18% after the company announced it’s planning to shut down Bitcoin mining operations over the next two years and switch to AI and high-performance computing instead. The stock closed at $2.60 and kept falling in after-hours trading.
The company said their 18-megawatt Bitcoin mining site in Washington will be the first to get converted, with the whole thing expected to be done by December 2026. CEO Ben Gagnon thinks this one site alone could make more money running AI services than they’ve ever made mining Bitcoin, even though it represents less than 1% of their total capacity.
Gagnon told investors that Bitcoin mining is getting way too expensive and difficult, especially in the US. He’s seeing the industry shift toward cheaper locations in the Middle East, Africa, and Russia, while American miners are better off pivoting to AI because the economics just make more sense here.
Other Bitcoin mining companies are doing similar moves. IREN just signed a huge $9.7 billion deal with Microsoft to provide AI computing power.
The news came alongside pretty rough quarterly results, with Bitfarms posting a $46 million loss in Q3, which was way worse than what analysts expected. Their revenue did jump 156% to $69 million but still missed estimates by over 16%.
Conclusion
Bitfarms’ sharp pivot highlights a broader industry shift: with Bitcoin mining economics tightening in the U.S., major miners are increasingly betting on AI and high-performance computing for future growth.
Also Read: Bitcoin Cloud Mining Platforms for 2025
