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Bitfarms, one of North America’s largest Bitcoin miners, declared its intent to gradually cease its mining activities over the coming two years.
The firm aims to redirect its attention towards high-performance computing (HPC) and artificial intelligence (AI) infrastructure.
This shift signifies a larger trend among cryptocurrency miners. Declining Bitcoin values and diminishing profit margins are encouraging operators to investigate more stable income sources. Bitfarms’ Toronto operations will increasingly concentrate on GPU-as-a-Service solutions and cloud computing options.
Its Washington State facility will represent the company’s first completely transformed site. The 18 MW mining farm will be modified to accommodate Nvidia GB300 GPUs equipped with advanced liquid cooling systems.
Bitfarms has arranged a fully financed, $128 million agreement with a prominent U.S.-based data center ally to provide all essential equipment and construction materials. Completion is expected by December 2026.
“Even though it constitutes less than 1% of our total developable portfolio, we are confident that transitioning our Washington site to GPU-as-a-Service could yield more net operating income than we have ever achieved through Bitcoin mining, giving the Company a robust cashflow footing that could sustain opex, G&A, and debt obligations, as well as contribute to capex as we phase out our Bitcoin mining activities in 2026 and 2027,” stated CEO Ben Gagnon.
Bitfarms and other Bitcoin miners shifting towards AI
Other miners are making analogous investments. Firms like Cipher and Terawulf have formed alliances with investors such as SoftBank and Google to establish AI-capable data centers.
These initiatives are drawing billions in anticipated revenue and unlocking additional funding through debt financing.
Bitfarms’ transition occurs amidst financial challenges. The company disclosed a $46 million loss in the third quarter against $68 million in revenue. Shares dropped approximately 5.7% in early trading, yet the stock has still risen twofold this year.
The Washington facility will incorporate modular infrastructure for scalable deployment and efficient power management.
The firm intends to capitalize on the site through both colocation and cloud services, establishing itself as a provider of AI compute rather than merely cryptocurrency infrastructure.
Bitfarms’ expansive energy portfolio amounts to 2.1 GW across North America. Its locations are concentrated in areas with strong access to power and fiber, making the transition from Bitcoin mining to AI workloads a logical progression of its current infrastructure.
While the company underscores the prospects of HPC/AI, it faces implementation risks. Projects may experience delays, equipment might not fulfill performance expectations, or the economics of GPU-as-a-Service could fall short of projections.
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