Bitfarms to exit Bitcoin mining and go all-in on AI by 2027

Bitfarms will shut down its Bitcoin mining operations over the next two years and gradually convert them into AI-focused high-performance computing data centers.

Bitfarms will begin this transition with its Washington site and repurpose the facility for a new generation of compute-heavy workloads, the company said in a Nov. 13 announcement. 

Expected to be completed by December 2026, the 18 megawatt Bitcoin mining facility in Washington will house state-of-the-art infrastructure powered by Nvidia’s flagship GPUs, capable of supporting workloads of up to 190 kilowatts per rack with advanced liquid cooling systems.

The Canada-headquartered company has already secured the full supply chain via a binding agreement worth $128 million with a large US-based multinational data center infrastructure provider. As part of the deal, the partner will supply all critical IT hardware and building materials needed to complete the conversion.

“We believe there are compelling reasons to consider pursuing a GPU-as-a-Service or Cloud monetization strategy, specifically at Washington. Despite being less than 1% of our total developable portfolio, we believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining,” Bitfarms CEO Ben Gagnon said in an accompanying statement.

Gagnon expects the Washington conversion to fund the company with “a strong cashflow foundation” and support the wind-down of the company’s “Bitcoin mining business in 2026 and 2027.”

Bitcoin mining has become a highly competitive market with thinning margins and capital-intensive upkeep, and with readily available infrastructure and power contracts, crypto miners already have an edge over traditional data center entrants. As such, many of these firms have knocked over their rigs and pivoted to AI and high-performance computing, especially following the 2024 halving that cut block rewards and tightened mining economics.

Bitfarms’ mining revenue was already showing signs of stress by the first half of 2025, with sharply compressed gross margins and soaring production costs. With the AI sector expected to bring in stronger recurring revenue and enterprise-grade demand, Bitfarms is looking to seize the opportunity like many of its publicly traded rivals.

Shareholders have also backed the idea, and Bitfarms shares have performed quite well throughout most of 2025 as the company doubled down on its pivot into compute infrastructure and capitalized on the booming AI wave.

Another motivation for Bitfarms has been its weak financial performance over the last quarter. Bitfarms posted a net loss of $46 million, or 8 cents per share, which was below analyst expectations of a 2-cent loss per share despite a 156% year-over-year jump in revenue to $69 million.

As previously reported, the company is looking to raise 500 million dollars via a convertible senior notes offering, which would allow it to fund ongoing expansion efforts while minimizing shareholder dilution.