Bitfarms Reports $36M Q1 Loss Amid Bitcoin Mining Transition

Bitfarms reported a net loss of $36 million for the first quarter, marking a significant increase from the $6 million loss in the same period last year. This financial setback comes as the company transitions from Bitcoin mining to high-performance computing (HPC) for artificial intelligence applications.

The company's sales for the quarter ended March 31 reached $67 million, a 33% increase from the previous year. However, the gross profit margin for Bitfarms' mining operations decreased to 43% from 63% year-over-year. This decline is attributed to the upcoming Bitcoin halving in April 2024, which reduces the number of BTC mined per block by half, and the volatility in Bitcoin's price.

Bitcoin's spot price fluctuated significantly during the first quarter of 2025, ranging from over $100,000 in January to less than $80,000 in March. As of March 14, the cryptocurrency was trading at more than $103,000 per coin.

In response to these market conditions, Bitfarms has been investing in high-performance computing and expanding its presence in the United States. The company aims to leverage its mining infrastructure for AI applications, providing a stable foundation for growth.

Bitfarms CEO Ben Gagnon highlighted the company's strategic pivot, stating that the mining business now serves as a stable, low-capex, and free cash flow foundation. This positions Bitfarms to grow and develop its U.S. assets into HPC/AI data centers while still capitalizing on potential Bitcoin upside in 2025 and 2026.

The shift towards AI data-center hosting is a trend among miners, as it allows them to expand revenue and repurpose existing infrastructure for high-performance computing. The hardware and electrical power supplies used in Bitcoin mining are also suitable for AI applications.

In March, AI computing provider CoreWeave raised $1.5 billion in an initial public offering, valuing the company at roughly $20 billion. This reflects strong investor demand for companies servicing AI applications.

In April, Bitfarms secured a $300 million line of credit from investment bank Macquarie to finance the expansion of an HPC facility in Pennsylvania. Additionally, in January, the company sold a Bitcoin mining facility in Paraguay to Hive Digital for $85 million.