Despite a widened net loss, Bitfarms shares surged amid plans to pivot from Bitcoin mining to AI infrastructure.
Bitfarms shares increased by 6.6% on Tuesday, closing at 2.73 Canadian dollars, even as the company reported a $284.5 million net loss for 2025. The loss stemmed from a 46% drop in Bitcoin prices since October and a 58.5% rise in Bitcoin mining difficulty since May 2024.
Financial Details of the Loss
The company saw a 72% year-over-year revenue increase to $229 million, but this was offset by $248 million in costs of revenue, resulting in a gross loss. General and administrative expenses also rose year over year, while the change in fair value of digital assets led to a $50.5 million loss in 2025, compared to a $26 million gain in 2024.
A $28.2 million realized gain from the sale of digital assets partially offset the losses, highlighting the challenges Bitcoin miners face in maintaining profitability amid market fluctuations.
Bitfarms CEO Ben Gagnon stated that the company made a "bold decision to walk away" from its Bitcoin mining business in November, focusing instead on building a new operation for high-performance computing (HPC) and AI data centers. He emphasized that the pivot involves "no half-measures, no compromises, and in time, no Bitcoin."
The company plans to rebrand as Keel Infrastructure and relocate its legal base from Canada to the United States, with shareholder approval already secured. Bitfarms currently holds approximately $161 million in unencumbered Bitcoin as it shifts focus.
Gagnon added that the company's infrastructure is designed to support the growing demand for HPC and AI, stating, "Everything we built in 2025 was in service of one thesis: that HPC/AI's exponential growth requires top-tier infrastructure." Bitfarms is advancing a 2.2 gigawatt digital infrastructure pipeline across North America to power hyperscalers and neoclouds for AI applications.
Bitfarms is not alone in this shift; other Bitcoin miners like Iris Energy, which is scaling AI cloud services with Nvidia GPUs, and Cipher Mining, which secured an AI hosting deal with Fluidstack, are also expanding into HPC and AI. Riot Platforms and MARA Holdings have made similar moves to pursue higher-margin opportunities.