• Bitfarms plans to end Bitcoin mining by 2027, converting the 18MW Washington facility by December 2026.
• The Q3 results are a $46 million net loss, $69 million in revenues, and the mining of 520 Bitcoins.
• With nearly $1 billion of cash, the stock declined by 18 percent due to cautious investment sentiment regarding the AI transition.

Bitfarms has revealed a restructuring plan that involves the company ceasing operations related to the mining of Bitcoin by the year 2027 as the company pivots toward artificial intelligence and high-performance computing. Its 18-megawatt Washington State facility will be the first site converted, with completion expected by December 2026 under the new strategy.

Market response came swiftly after the news, with Bitfarms’ shares plummeting between 10% and 18%. This change reflects the growing economic force acting upon the mining community, and the United States in particular, where mining profitability has dwindled for a series of consecutive quarters.

Investors Cautious Despite Nearly $1 Billion Liquidity

As reported by WuBlockchain, Bitfarms will gradually stop mining Bitcoin over the next two years and turn the locations into AI and HPC centers. It noted the Washington site as the first to complete the conversion. 

Bitfarms secured a $128 million agreement for equipment and infrastructure to support the transformation. The company currently retains a robust $1 billion of liquidity. However, investors are taking a cautious stance, citing a rise in costs and business risks of venturing into the AI infrastructure business.

CEO Ben Gagnon emphasized strong opportunities in GPU-as-a-Service operations and noted that these operations could generate even more profit than the company historically achieved through mining activities. He also explained that the conversion would help with the winding down of the Bitcoin mining operation in 2026 and 2027.

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Bitfarms Reports $46 Million Q3 Loss

The company reported a net loss of $46 million during the third quarter, further escalating the concerns of the market. The company’s revenue of $69 million registered a massive growth of 156% over the year, but missed analysts’ estimates of $53.45 million by over 16%. The company’s hash rate capacity of 55 EH/s permitted it to mine 520 BTC at a direct production cost of $48,200.

The shares declined by almost 18%, to $2.60, after the earnings announcements. The analysts attributed the decline in earnings, together with the change of strategies, to the uncertainty that the company faces. The company’s liquidity ratios are sound, but the mining economics of the major mining sites in America continue to deteriorate.

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