Bitfarms, a prominent Bitcoin miner, announced a drastic change on Thursday. The company abandons Bitcoin mining completely. This decision follows a shocking $46 million net loss in the third quarter. CEO Ben Gagnon confirmed the company will refocus on AI infrastructure and high-performance computing (HPC).
The transition will begin immediately. Its 18-megawatt facility in Washington will be the first to convert. This site will be optimized for Nvidia’s GB300 GPUs. Bitfarms has already secured a $128 million agreement. This deal will fund the necessary IT equipment and materials for the conversion.
Is artificial intelligence more profitable than cryptocurrency mining?
The firm is the first major miner to announce a total exit. The strategic pivot responds to tighter margins and rising costs in mining. According to Gagnon, the Washington facility (less than 1% of its portfolio) could generate more income than all past BTC mining. Bitfarms plans a “GPU-as-a-Service” model.
Bitfarms is not alone in this interest. Other miners like Marathon and IREN are exploring AI. However, they have not abandoned mining. The sector sees higher margins in AI and stable demand. This occurs as corporate accumulation of cryptocurrencies slowed significantly in October.
This announcement comes at a tense financial time. The company reported accounting errors in past reports. It also expanded a convertible note sale to $500 million. Shares (BITF) fell nearly 18% after the news, reflecting market uncertainty about this deep restructuring.
