Bitfarms posts $36M Q1 loss as it pivots to AI

Bitfarms reported a $36 million net loss in Q1 2025, shifting its focus from Bitcoin mining to building AI-powered high-performance computing infrastructure in the U.S. and beyond.

Revenue grows but margins drop post-halving

Bitfarms’ sales rose 33% to $67 million in Q1 2025, but profit margins fell. Gross margin from mining operations declined from 63% to 43% year-over-year. The company cited Bitcoin’s April halving and market volatility as key reasons.

In Q1, Bitcoin’s spot price ranged from over $100,000 to below $80,000. As of March 14, BTC traded at $103,000.

This high volatility continues to strain the profitability of traditional mining operations.

Strategic shift to HPC and U.S. growth

Bitfarms is investing in high-performance computing (HPC) to meet growing AI demand. CEO Ben Gagnon said the firm is expanding in the U.S. while turning existing mining infrastructure into AI-ready data centers.

He described mining as a low-CAPEX foundation for scaling AI services in 2025–2026.

Mining gear repurposed for AI infrastructure

Coin Metrics reported that miners are leveraging existing hardware for AI and HPC hosting. The power and cooling systems in mining farms make them ideal for AI workloads.

In April, Bitfarms secured $300 million in credit from Macquarie to expand its Pennsylvania site. In January, it sold a mining facility in Paraguay to Hive Digital for $85 million.