Bitfarms Shares Rise Despite Major 2025 Loss as Company Bets Future on AI Infrastructure
In a striking market reaction, Bitfarms (BITF) saw its shares climb 6.6% on Tuesday, even as the company reported a substantial net loss of $284.5 million for the fiscal year 2025. The divergence between stock performance and bottom-line results underscores a major strategic pivot: the Bitcoin miner is aggressively transforming into a provider of high-performance computing (HPC) and artificial intelligence infrastructure.
Financials: Revenue Growth Overshadowed by Soaring Costs
Bitfarms’ full-year results, released on April 7, 2026, revealed a complex financial picture. On one hand, the company achieved a 72% year-over-year increase in revenue, reaching $229 million. This growth was driven by expanded operations and, likely, the early stages of its new HPC/AI initiatives.
However, this revenue gain was more than offset by a cost of revenue totaling $248 million, resulting in a gross loss. General and administrative expenses also rose annually. A significant factor was the dramatic shift in the fair value of its digital asset holdings. In 2025, Bitfarms recorded a $50.5 million loss from this valuation change, compared to a $26 million gain in 2024. This was partially mitigated by a $28.2 million realized gain from selling some Bitcoin holdings.
The results highlight the severe profitability pressures facing traditional Bitcoin miners. The primary culprits are a roughly 46% decline in Bitcoin’s price from its October 2025 peak and a 58.5% increase in mining difficulty since the last halving in May 2024, which squeezes margins by requiring more computational power for the same rewards.
A “Bold Decision”: Walking Away from Bitcoin Mining
During the earnings call, CEO Ben Gagnon framed the financial results within a narrative of deliberate, radical transformation. He stated the company made the “bold decision to walk away” from its core Bitcoin mining business in November 2025.
“No half-measures, no compromises, and in time, no Bitcoin. We built a new company,” Gagnon declared. This transformation is culminating in a corporate rebrand to Keel Infrastructure, effective the day after the earnings release, following shareholder approval to relocate its legal domicile from Canada to the United States.
The strategy is explicit: leverage existing sites, a built team, and a strengthened balance sheet—which still holds approximately $161 million in unencumbered Bitcoin—to pursue the exponential growth in HPC and AI demand. “Everything we built in 2025… was in service of one thesis: that HPC/AI’s exponential growth requires top-tier infrastructure, and we intend to build to meet that demand,” Gagnon said.
Bitfarms is positioning itself not as a competitor to tech giants like Amazon or Google (the “hyperscalers”) or emerging cloud providers (“neoclouds”), but as a critical enabler. Its stated focus is “providing the critical and largely invisible foundation that will allow the world’s most advanced AI platforms to deploy on time and scale without interruption.” To this end, the company is advancing a 2.2 gigawatt digital infrastructure development pipeline across North America.
Industry Trend: Miners Pivot to AI and HPC
Bitfarms’ move is part of a broader industry trend. Facing compressed margins in Bitcoin mining, several publicly traded miners are redirecting capital and infrastructure toward the higher-margin, rapidly growing markets of AI and HPC.
Iris Energy is scaling AI cloud services using Nvidia GPUs. Cipher Mining has secured a long-term AI hosting agreement with Fluidstack. Other major players like Riot Platforms and MARA Holdings have also announced initiatives or investments in AI and HPC infrastructure. MARA’s recent sale of $1.1 billion in Bitcoin to buy back debt at a discount, as noted in related coverage, exemplifies the capital reallocation happening across the sector.
Bitfarms’ stock reaction suggests investors are pricing in the potential of its new trajectory, viewing the 2025 loss as a transitional cost toward capturing a share of the burgeoning AI infrastructure market. The success of this pivot will depend on its ability to execute on its 2.2 GW pipeline and secure long-term contracts with AI and cloud computing clients, moving beyond the volatile profitability of Bitcoin mining.
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