Bitfarms Swings to $36M Loss as It Bets Big on AI and U.S. Expansion

Bitfarms Swings to $36M Loss as It Bets Big on AI and U.S. Expansion

Once a Pure Bitcoin Miner, Bitfarms Is Now Repositioning Itself as an AI and High-Performance Computing Contender

Bitfarms Ltd. has reported a $36 million net loss for the first quarter of 2025, marking a sharp increase from the $6 million loss in the same period last year. The shift comes as the company transitions away from traditional Bitcoin mining to focus on high-performance computing (HPC) and AI infrastructure, all while expanding its footprint in the United States.

Bitcoin Volatility and Halving Hammer Mining Margins

Despite generating $67 million in Q1 revenue, a 33% year-over-year increase, Bitfarms’ gross profit margin tumbled to 43%, down from 63% a year earlier. The culprit: the Bitcoin halving event in April 2024 and extreme price volatility.

During Q1 2025, Bitcoin’s price plunged from over $100,000 in January to under $80,000 in March, before recovering to above $103,000 by March 14, according to Google Finance.

The halving, which reduces the reward for mining Bitcoin by 50%, traditionally compresses profit margins. This volatility and structural change in mining economics have prompted miners like Bitfarms to reconsider their business models.

A Strategic Pivot Toward AI Infrastructure

In response, Bitfarms is leaning into the AI wave, redirecting resources toward data center hosting and HPC infrastructure — services essential for artificial intelligence operations.

“The mining business now provides a stable, low-capex and free cash flow foundation,” said CEO Ben Gagnon, “that positions us very well to grow and develop our U.S. assets into HPC/AI data centers while still capitalizing on any potential Bitcoin upside in 2025 and 2026.”

The company’s infrastructure, including electrical power and GPU-based hardware, is well-suited to support high-performance computing needs beyond mining. In March, analytics firm Coin Metrics noted that miners are increasingly repurposing mining equipment to service AI workloads and diversify revenue streams.

Capitalizing on HPC Momentum and AI Demand

Bitfarms’ pivot is already underway:

• In April, the company secured a $300 million credit line from Macquarie to fund an HPC facility in Pennsylvania.

• In January, it sold its Paraguay mining site to Hive Digital for $85 million, signaling a pullback from Latin America.

• Competitor CoreWeave, an AI computing firm, raised $1.5 billion in March at a $20 billion valuation, illustrating just how hot the AI data center sector has become.

With heightened investor interest in AI infrastructure and Bitfarms’ mining base serving as a launching pad, the company is attempting to chart a dual-path strategy — capturing upside from both Bitcoin’s resurgence and the AI infrastructure boom.