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Bitcoin News Update: Bitfarms Shifts Focus to AI as Crypto Faces Declining Profitability and Increased Volatility

Bitcoin News Update: Bitfarms Shifts Focus to AI as Crypto Faces Declining Profitability and Increased Volatility

Bitget-RWA2025/11/14 03:52
By:Bitget-RWA

- Bitfarms plans to exit Bitcoin mining by 2027, shifting to HPC/AI infrastructure amid shrinking crypto margins and volatility. - The Washington site's GPU-as-a-Service transition, funded by a $128M agreement, aims to boost income but faces a 12% premarket stock drop due to earnings misses and execution risks. - Competitors like IREN and Terawulf are also pivoting to AI, with Bitfarms' 8.3x PS ratio below peers but above industry averages. - Financial pressures include $46M Q3 losses, $9M impairment charg

Canadian

miner (NASDAQ: BITF) revealed it will gradually exit its cryptocurrency mining business within the next two years, redirecting its focus toward high-performance computing (HPC) and artificial intelligence (AI) infrastructure. This move represents a significant change in strategy as the sector grapples with declining profitability and unstable crypto valuations. The company’s Washington state facility, which has an 18-megawatt capacity, will be the first to shift to a GPU-as-a-Service model, with the transition expected to finish by December 2026. CEO Ben Gagnon mentioned that than what the company has historically achieved from Bitcoin mining.

The decision comes after a difficult third quarter in 2025, during which

on $69 million in revenue. While revenue jumped 156% year-over-year, it still fell short of projections by 15%. The loss in the same quarter of 2024. Despite the new direction, in premarket trading, sitting at $2.75 at the time of reporting. Analysts pointed to weaker-than-anticipated earnings and doubts about the AI transition’s viability as reasons for the decline.

and support up to 190 kW per rack, making it suitable for Nvidia’s upcoming Vera Rubin GPUs, which are slated for release in late 2026. The company with a U.S. infrastructure partner to finance the conversion. Gagnon stressed that this strategic shift is in line with broader industry movements, as more Bitcoin miners pursue higher-margin opportunities in AI and HPC. " to warrant reallocating resources," he said.

This approach echoes the strategies of competitors like IREN and Terawulf, who have teamed up with major tech firms such as Microsoft and Google to build AI-focused data centers. IREN

multi-year contract with Microsoft, while Terawulf’s shift to AI infrastructure has boosted its premium valuation. is lower than TeraWulf’s 42.96x but higher than the sector average of 3.48x.

Mounting financial pressures are speeding up the change. Bitfarms’ Q3 operating loss

and $27 million in non-cash depreciation. The company has $814 million in liquid assets, including $177 million in unencumbered Bitcoin, but . Gagnon could help cover operational costs and debt payments as it phases out Bitcoin mining.

The market’s response to this new direction has been mixed. While some analysts see promise in the HPC/AI sector,

(beta of 5.05) and negative free cash flow (–24.54%) present significant risks. Bitfarms’ stock has climbed 70% so far this year amid a broader rally among crypto miners, but indicates weak operational strength.

As the industry’s move toward AI infrastructure accelerates, Bitfarms’ future will depend on its ability to successfully convert the Washington site and attract large-scale clients. The company’s

in Pennsylvania and of energy capacity point to long-term goals. However, —which have risen 12% year-over-year in major U.S. markets—could challenge its execution.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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