Bitfarms indicated a strategy to relocate its Bitcoin mining establishments over the forthcoming two years and ensure their transformation for powering AI, beginning with its principal installation in Washington.
Bitfarms’ equity has significantly declined after the corporation disclosed that its Bitcoin mining endeavors would be ceased over the forthcoming two years and subsequently converted into artificial intelligence and high-compute data establishments.
The corporation stated on Thursday that its $18-megawatt Bitcoin BTC mining installation in the U.S. jurisdiction of Washington will be the inaugural facility to be fully reconfigured to accommodate AI and high-performance computing, with finalization anticipated in December 2026.
“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,”
said Bitfarms CEO Ben Gagnon.
He further specified that the reconfiguration would assist the corporation as its Bitcoin mining operations are phased out during 2026 and 2027.
Equity instruments in Bitfarms BITF retreated on Thursday following the disclosures, concluding the trading day having diminished nearly $18% to $2.60 dollars, with reductions persisting into after-hours transactions by almost $3.5% to $2.51 dollars.
AI Represents the Best Opportunity for U.S. Bitcoin Miners, Says CEO
It was communicated to investors by Gagnon during an earnings teleconference that Bitcoin miners are anticipated to “transition to locations with progressively diminished operating expenses” as the complexity and expense of unearthing the cryptocurrency escalate.
“One of the big dynamics that is taking place is that the public miners represented almost a third of the entire network, and they all seem very keen on moving over to the higher economics associated with HPC and AI,”
he added.
It was stated by Gagnon that significant expansion has begun to be observed in Bitcoin mining across the Middle East, Africa, and Russia, and he further specified that “the prime prospect for the majority of miners in the United States is assuredly this shift toward HPC and AI.”
“The economics are really going to drive that forward because the US is the best market to invest in for HPC and AI, whereas Bitcoin mining is largely location-agnostic,” he said. “It’s happy to go to cheaper locations, higher-risk locations, more remote locations than HPC and AI is.”
It was additionally remarked by Gagnon that the chances for Bitfarms to relocate its Bitcoin mining operations to other regions “are unequivocally limited” and do not represent “a favorable application of leadership’s capital or schedule.”
“The best opportunity is to basically bring forward what should be estimated free cash flow for mining operations today into cash and reinvest those into HPC and AI,”
he said.
Bitfarms Reports Q3 Loss and Revenue Miss
This transpires as a net loss of $46 million was posted by Bitfarms in Q3, when contrasted with deficits of $24 million a year prior, amounting to a loss of $8 cents per share, a figure that was inferior to the analyst prognosis of a $2-cent per share loss.
The corporation’s proceeds amplified $156% on an annual basis to $69 million dollars, yet the figure was lower than analyst projections by over $16%.
It was reported by Bitfarms that $520 BTC were acquired at an average direct expenditure of $48,200 per unit, and $1,827 BTC were retained as of Wednesday.
Equity instruments in Bitfarms BITF retreated on Thursday following the disclosures, concluding the trading day having diminished nearly $18% to $2.60 dollars, with reductions persisting into after-hours transactions by almost $3.5% to $2.51 dollars.
