Breaking News! Bitfarms Abandons Bitcoin Mining to Bet on AI, Incurring $36 Million Loss!

Once a giant in crypto mining, Bitfarms faced a staggering net loss of $36 million in the first quarter of 2025, a sixfold increase from the $6 million loss during the same period last year! This massive loss stems from the company's complete transformation: abandoning Bitcoin mining to focus on high-performance computing (HPC) to support artificial intelligence (AI) business.

Earlier this year, Bitcoin prices fluctuated wildly, and the April 'halving' led to a 50% reduction in mining rewards, severely shrinking profit margins for miners. Bitfarms chose to leverage its strong computing power and energy advantages to enter the hot AI cloud computing sector, betting on future growth potential.

CEO Ben Gagnon revealed that the company is setting up an HPC data center in Pennsylvania, USA, planning to provide computing services for training large language models and neural networks. To this end, Bitfarms secured $300 million in credit support from Macquarie Group and sold its Paraguay mining operation, fully investing the funds into AI infrastructure.

Despite a 33% year-over-year revenue growth, reaching $67 million, the gross margin has dropped to 43% due to plummeting mining profits. Investor reactions have been cautious, with the stock price falling significantly from its peak, and some investment pools starting to exclude its shares.

Industry experts are optimistic about the trend of mining transitioning to AI, pointing out that this is not only a crisis but also an opportunity. Bitfarms is striving to replicate the success of CoreWeave — which started in mining and saw its revenue soar by 420% after transitioning to AI computing, with a market value surpassing $20 billion by 2025.

Bitfarms has stopped disclosing its Bitcoin production, clearly placing more emphasis on the future of artificial intelligence. As the demand for computing power from AI models explodes, Bitfarms, with its mining background, may seize this new opportunity to survive in adversity!

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