Bitfarms recorded a net loss of $36 million due to its shift from Bitcoin (BTC) mining to AI.

Source: Cointelegraph Original: "Bitfarms Reports $36 Million Net Loss Due to Shift from Bitcoin (BTC) Mining to AI"

Bitfarms reported a net loss of $36 million in the first quarter of 2025, widening from a loss of $6 million in the same period last year, as the Bitcoin mining company shifts from mining to high-performance computing (HPC) for artificial intelligence applications.

The mining company achieved sales of $67 million for the quarter ending March 31, representing a 33% increase compared to the same period last year. However, according to the data released in the company's first-quarter financial report, Bitfarms' mining business gross margin fell year-on-year from 63% to 43%.

The decline in profit margins reflects the pressure brought by the Bitcoin (BTC) "halving" in April 2024 and the volatility of Bitcoin prices. The halving event occurs every four years, reducing the amount of BTC mined per block by half, thereby lowering the profitability of Bitcoin miners.

According to Google Finance data, in the first quarter of 2025, the spot price of Bitcoin fluctuated from over $100,000 in January to less than $80,000 in March. As of March 14, the trading price of this cryptocurrency was over $103,000 each.

Bitfarms is responding to changing market conditions by investing in high-performance computing (HPC), while expanding its operations in the United States to hedge against potential trade war risks.

Ben Gagnon, CEO of Bitfarms, stated in a statement: "In this quarter, we have made progress in several key areas as we strategically shift to the United States and HPC."

He added, "The mining business now provides the company with a stable foundation of low capital expenditure and free cash flow, enabling us to well develop and convert US assets into HPC/AI data centers, while still being able to seize any potential upward opportunities for Bitcoin in 2025 and 2026."

Coin Metrics pointed out in a report in March that miners "are diversifying and entering the artificial intelligence data center hosting field to expand their income and repurpose existing infrastructure for high-performance computing."

The computer hardware and power supply required for Bitcoin mining are also suitable for applications that require high-performance computing, including artificial intelligence use cases.

In March, artificial intelligence computing provider CoreWeave raised $1.5 billion in its initial public offering, with a company valuation of approximately $20 billion, reflecting strong demand from investors for companies that serve artificial intelligence applications. CoreWeave's financial report for the last quarter is scheduled to be released on May 14.

In April, Bitfarms secured a credit line of $300 million from investment bank Macquarie to fund the expansion of an HPC facility in Pennsylvania.

In January, the company sold a Bitcoin mining facility in Paraguay to another mining company, Hive Digital, for $85 million.

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