Bitfarms Ltd. reported a GAAP loss of $0.08 per share for the third quarter of 2025, a wider loss than the consensus estimate of $0.02 per share. Revenue for the quarter was $69.3 million, down 11% from $78 million in the second quarter and 54% from the $45 million reported in Q3 2024. The revenue miss of $15.4 million against the $84.7 million consensus estimate underscores the short‑term financial pressure that accompanies the company’s transition away from pure Bitcoin mining.
Bitcoin mining output fell to 520 coins in Q3 2025 from 718 in Q2, a 27% decline that, combined with a lower Bitcoin price, contributed to the revenue shortfall. Gross mining margin contracted to 35% from 44% in Q3 2024, while the total cash cost per Bitcoin rose to $82,400 from $53,800. The margin compression reflects higher network difficulty, increased energy costs, and the capital outlays required to repurpose mining assets for high‑performance computing.
The company reiterated its plan to convert its 18‑MW Washington data center into a high‑performance computing and AI hub, targeting Nvidia’s next‑generation Vera Rubin GPUs. The conversion will employ advanced liquid cooling and higher energy density, and the project is fully funded and binding. Management views the shift as a long‑term strategy to generate higher‑margin compute services that can offset the current loss as the new facilities become operational.
CEO Ben Gagnon said the pivot “continues to execute on our strategy to transition from an international Bitcoin miner to a North American energy and digital infrastructure company.” He added that the Washington conversion “could generate more net operating income than ever generated with Bitcoin mining,” providing a strong cash‑flow foundation for future debt service and infrastructure expansion. CFO Jonathan Mir highlighted the successful $588 million convertible‑note offering and the conversion of a Macquarie debt facility, which have bolstered liquidity to fund the HPC/AI transition.
Investors reacted negatively to the earnings miss, citing the wider loss and revenue shortfall as evidence of the short‑term costs of the strategic pivot. The market’s response reflects concerns about the company’s ability to sustain profitability while it invests heavily in new infrastructure and navigates the volatility of Bitcoin prices.
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