Bitfarms Posts $285M Loss Amid Bitcoin Decline, Yet Stock Surges
Despite recording a net loss of $284.5 million for 2025, Bitfarms saw its stock price increase by 6.6% on Tuesday as the firm intensified its strategic shift away from Bitcoin mining toward AI and high-performance computing.
Despite disclosing an expanded net loss of $284.5 million for the year 2025, Bitfarms (BITF) stock saw a 6.6% increase on Tuesday, with the losses stemming from declining Bitcoin valuations and elevated revenue costs, even as the organization pushes forward with its strategic transformation toward artificial intelligence and high-performance computing infrastructure.
According to the company's annual financial results released on Tuesday, revenue grew 72% on a year-over-year basis to reach $229 million. However, this revenue growth was overshadowed by $248 million in revenue-related costs, ultimately resulting in a negative gross margin.
The company also experienced elevated general and administrative costs compared to the previous year, while fluctuations in the fair market value of its digital asset holdings resulted in a $50.5 million loss during 2025, contrasting with a $26 million gain recorded in 2024. This negative impact was somewhat mitigated by a $28.2 million gain realized through the sale of digital assets.
These financial outcomes highlight the challenges that certain Bitcoin mining operations have encountered in achieving profitability. Profit margins for Bitcoin miners have contracted as Bitcoin's value has declined 46% from its peak in October, while the Bitcoin difficulty metric — which measures the computational challenge of mining a new block — has surged 58.5% following the most recent halving event that occurred in May 2024.
During the company's earnings conference call, Bitfarms CEO Ben Gagnon revealed that the organization made the "bold decision to walk away" from Bitcoin mining operations in November and has successfully established a new business model focused on powering HPC and AI data center infrastructure:
"No half-measures, no compromises, and in time, no Bitcoin. We built a new company," he said, adding that Bitfarms expects to rebrand to Keel Infrastructure on Wednesday and has been given shareholder approval to move its legal base from Canada to the US.
According to the company's regulatory filing, Bitfarms maintains ownership of approximately $161 million worth of unencumbered Bitcoin assets at present.
In the statement, Gagnon added: "Everything we built in 2025 — the sites, the team, the balance sheet — 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."
Trading data from Google Finance indicates that BITF shares concluded Tuesday's trading session with a 6.64% gain, reaching 2.73 Canadian dollars ($1.96).
According to Bitfarms, the company's strategic emphasis regarding HPC and AI infrastructure centers on providing power solutions for hyperscale cloud providers and emerging cloud platforms that will support the next generation of artificial intelligence applications.
"We are not here to compete with hyperscalers or Neoclouds. We are here to enable them. Our 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."
The company is currently working to advance a comprehensive 2.2 gigawatt digital infrastructure development pipeline spanning multiple locations throughout North America in order to accomplish this objective.
Bitfarms joins a growing list of Bitcoin mining companies that have either diversified into or completely pivoted their operations toward AI infrastructure, seeking more lucrative opportunities within the HPC and AI sectors.
Among other examples, Iris Energy has been expanding its AI cloud service offerings utilizing Nvidia GPUs, while Cipher Mining successfully negotiated a long-term AI infrastructure hosting agreement with AI cloud platform Fluidstack. Similarly, both Riot Platforms and MARA Holdings have undertaken expansions into the AI and HPC markets.