Bitget App
Trade smarter
MarketsTradeFuturesEarnSquareMore
Bitcoin News Update: Bitfarms Shifts Focus to AI as Crypto Faces Declining Profitability and Increased Volatility

Bitcoin News Update: Bitfarms Shifts Focus to AI as Crypto Faces Declining Profitability and Increased Volatility

Bitget-RWA2025/11/14 03:52
By:Bitget-RWA

- Bitfarms plans to exit Bitcoin mining by 2027, shifting to HPC/AI infrastructure amid shrinking crypto margins and volatility. - The Washington site's GPU-as-a-Service transition, funded by a $128M agreement, aims to boost income but faces a 12% premarket stock drop due to earnings misses and execution risks. - Competitors like IREN and Terawulf are also pivoting to AI, with Bitfarms' 8.3x PS ratio below peers but above industry averages. - Financial pressures include $46M Q3 losses, $9M impairment charg

Canadian

miner (NASDAQ: BITF) revealed it will gradually exit its cryptocurrency mining business within the next two years, redirecting its focus toward high-performance computing (HPC) and artificial intelligence (AI) infrastructure. This move represents a significant change in strategy as the sector grapples with declining profitability and unstable crypto valuations. The company’s Washington state facility, which has an 18-megawatt capacity, will be the first to shift to a GPU-as-a-Service model, with the transition expected to finish by December 2026. CEO Ben Gagnon mentioned that than what the company has historically achieved from Bitcoin mining.

The decision comes after a difficult third quarter in 2025, during which

on $69 million in revenue. While revenue jumped 156% year-over-year, it still fell short of projections by 15%. The loss in the same quarter of 2024. Despite the new direction, in premarket trading, sitting at $2.75 at the time of reporting. Analysts pointed to weaker-than-anticipated earnings and doubts about the AI transition’s viability as reasons for the decline.

and support up to 190 kW per rack, making it suitable for Nvidia’s upcoming Vera Rubin GPUs, which are slated for release in late 2026. The company with a U.S. infrastructure partner to finance the conversion. Gagnon stressed that this strategic shift is in line with broader industry movements, as more Bitcoin miners pursue higher-margin opportunities in AI and HPC. " to warrant reallocating resources," he said.

This approach echoes the strategies of competitors like IREN and Terawulf, who have teamed up with major tech firms such as Microsoft and Google to build AI-focused data centers. IREN

multi-year contract with Microsoft, while Terawulf’s shift to AI infrastructure has boosted its premium valuation. is lower than TeraWulf’s 42.96x but higher than the sector average of 3.48x.

Mounting financial pressures are speeding up the change. Bitfarms’ Q3 operating loss

and $27 million in non-cash depreciation. The company has $814 million in liquid assets, including $177 million in unencumbered Bitcoin, but . Gagnon could help cover operational costs and debt payments as it phases out Bitcoin mining.

The market’s response to this new direction has been mixed. While some analysts see promise in the HPC/AI sector,

(beta of 5.05) and negative free cash flow (–24.54%) present significant risks. Bitfarms’ stock has climbed 70% so far this year amid a broader rally among crypto miners, but indicates weak operational strength.

As the industry’s move toward AI infrastructure accelerates, Bitfarms’ future will depend on its ability to successfully convert the Washington site and attract large-scale clients. The company’s

in Pennsylvania and of energy capacity point to long-term goals. However, —which have risen 12% year-over-year in major U.S. markets—could challenge its execution.

---

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

The Rapid Growth Driving Internet Computer (ICP) Forward

- Internet Computer (ICP) gains momentum via strategic partnerships with Azure and Google Cloud, enhancing scalability and enterprise integration. - Deflationary token model and 1.2M+ active wallets drive adoption, supported by DeFi growth and low-cost smart contract execution. - Cross-industry collaborations, like medical TPU material development, highlight blockchain's expanding utility beyond traditional finance. - Regulatory shifts, including SEC rules, pose challenges but may strengthen ICP's institut

Bitget-RWA2025/11/14 09:06
The Rapid Growth Driving Internet Computer (ICP) Forward

Bitcoin News Today: Bitcoin Faces $106K Challenge as Whales, Miners, and Broader Economic Factors Intersect

- Bitcoin nears critical descending channel, risking a sharp drop to $88,000 if $106,500 resistance fails, per analysts. - Mixed signals emerge: $1.15M ETF inflow and 23% trading volume surge hint at short-term stability, but macroeconomic headwinds and whale dumping persist. - Institutional adoption grows under Trump's policies, yet miners face existential threats as Bitfarms shifts to AI amid unprofitable operations. - Market bifurcation deepens: Wall Street thrives on digital assets while domestic minin

Bitget-RWA2025/11/14 08:52
Bitcoin News Today: Bitcoin Faces $106K Challenge as Whales, Miners, and Broader Economic Factors Intersect

Aave News Today: Aave’s No-Fee Initiative Brings DeFi Access to All Across Europe

- Aave Labs secures MiCA approval in Ireland, enabling zero-fee euro-to-crypto conversions via its Push service across the EEA. - The fee-free model challenges traditional fintech and CEXs, aiming to reduce DeFi adoption barriers by eliminating transaction costs. - Ireland's regulatory environment attracts DeFi firms like Aave, following Kraken's MiCA authorization and Aave's Stable Finance acquisition. - With $312B stablecoin market cap in 2025, Push's $542M 24-hour volume highlights its role in scaling a

Bitget-RWA2025/11/14 08:36
Aave News Today: Aave’s No-Fee Initiative Brings DeFi Access to All Across Europe

Post-FTX digital asset exchanges simplify futures offerings to comply with regulatory requirements

- Binance delisted RUNEUSD futures to align with post-FTX regulatory demands and evolving user preferences. - The move follows industry-wide transparency efforts like proof-of-reserves initiatives after FTX's 2022 collapse. - Post-FTX trends show growing demand for DeFi solutions and institutional-grade crypto products with enhanced compliance. - Challenges persist in balancing innovation with regulation as exchanges like Binance recalibrate strategies amid shifting market dynamics.

Bitget-RWA2025/11/14 08:16
Post-FTX digital asset exchanges simplify futures offerings to comply with regulatory requirements