Bitfarms (BITF) Stock Plummets 18% as Bitcoin Mining Shutdown Sparks Investor Panic

Mining giant Bitfarms just threw a wrench in its operations—and shareholders are bolting for the exits.

The fallout: BITF nosedived 18% after announcing plans to idle mining rigs. Timing couldn't be worse—Bitcoin's flirting with $40K again, but these guys are powering down. Classic 'sell the news' moment.

Behind the shutdown: No details on whether this is a strategic pause or a desperate cost-cut. Either way, Wall Street's treating it like a red flag. One analyst muttered about 'weak hands' during the earnings call.

Bigger picture: Miners are the canaries in crypto's coal mine. When they start flickering off, smart money watches the hash rate—and the exits.

*Insert obligatory 'should've bought the dip' joke here*

TLDR

• Bitfarms announced plans to shut down Bitcoin mining operations over the next two years and convert sites to AI and high-performance computing infrastructure.
• The company’s stock dropped 18% to $2.60 after the announcement, with shares down 51% over the past month.
• Bitfarms reported a Q3 net loss of $46 million, worse than the $24 million loss a year ago, and revenue of $69 million that missed analyst estimates by 16%.
• The company’s Washington site will be the first converted to GPU-as-a-Service by December 2026, which CEO Ben Gagnon says could generate more income than Bitcoin mining ever did.
• CEO stated that US Bitcoin miners face better economics in HPC and AI compared to mining, as Bitcoin operations move to cheaper jurisdictions like the Middle East, Africa and Russia.

Bitfarms shares fell 18% on Thursday after the company announced it will wind down its Bitcoin mining operations completely. The stock closed at $2.60 and continued dropping in after-hours trading to $2.51.

Bitfarms Ltd., BITF

The Canadian mining company plans to convert all its bitcoin mining sites to artificial intelligence and high-performance computing data centers. This transition will take place over 2026 and 2027.

The company’s 18-megawatt Bitcoin mining facility in Washington state will be the first to convert. Bitfarms expects this site to support AI operations by December 2026.

CEO Ben Gagnon said the Washington site alone could produce more net operating income as an AI facility than the company has ever generated from Bitcoin mining. The site represents less than 1% of the company’s total developable portfolio.

The announcement came alongside disappointing third-quarter earnings. Bitfarms posted a net loss of $46 million compared to a $24 million loss in the same quarter last year.

The company’s loss per share was 8 cents. Analysts had expected a 2-cent per share loss.

Revenue increased 156% year-over-year to $69 million. However, this missed analyst estimates by more than 16%.

The Economics Behind the Shift

Gagnon explained that Bitcoin mining is becoming less profitable for US-based operations. Mining difficulty and costs continue to rise as the network grows.

He told investors that public Bitcoin miners now represent nearly a third of the entire network. Most appear interested in moving to higher-margin HPC and AI businesses.

Bitcoin mining operations are moving to cheaper locations around the world. Gagnon pointed to major growth in the Middle East, Africa and Russia.

The CEO said US miners face better opportunities in HPC and AI. The United States offers the best market for these services while Bitcoin mining can operate from anywhere.

“Bitcoin mining is largely location-agnostic,” Gagnon said. “It’s happy to go to cheaper locations, higher-risk locations, more remote locations than HPC and AI is.”

Industry Trend Toward AI

Bitfarms follows other mining companies exploring AI opportunities. Bitcoin miner IREN signed a $9.7 billion multi-year deal with Microsoft in November to provide AI compute access.

MARA announced plans to expand into AI compute services last week while reporting record revenues. However, Bitfarms is the first major player to announce a complete exit from Bitcoin mining.

Gagnon said opportunities to MOVE Bitfarms’ mining operations to cheaper locations are limited. He called the pivot to AI a better use of management time and resources.

The company operates 12 data centers across North America with 341 megawatts of energy capacity. Bitfarms recently secured a $300 million debt facility in October for a site in Panther Creek, Pennsylvania.

The Pennsylvania site aims to capitalize on growing demand for AI infrastructure. The company plans to use Nvidia GB300 chips with advanced liquid cooling at the Washington facility.

Bitfarms mined 520 BTC during the third quarter at an average direct cost of $48,200 per coin. The company held 1,827 BTC as of Wednesday.

Shares have fallen 51% over the past month as market conditions have weakened.