Bitfarms clocked a first-quarter internet lack of $36 million, widening from a $6 million loss in the identical interval a yr earlier, because the Bitcoin miner pivots from mining to high-performance computing for synthetic intelligence purposes.
The miner posted $67 million in gross sales for the quarter ended March 31, up 33% from the yr prior. Nonetheless, gross revenue margin for Bitfarm’s mining operations declined to 43% from 63% year-over-year, the corporate mentioned in its first quarter earnings launch.
The decrease margins mirror strain from Bitcoin’s (BTC) April 2024 “halving” in addition to volatility in Bitcoin’s worth. Halvings happen each 4 years and reduce the variety of BTC mined per block in half, lowering Bitcoin miners’ profitability.
Within the first quarter of 2025, Bitcoin’s spot worth swung from greater than $100,000 in January to lower than $80,000 in March, in accordance with knowledge from Google Finance. The cryptocurrency trades at greater than $103,000 per coin as of March 14.
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Pivot to AI
Bitfarms has responded to the altering market circumstances by investing in high-performance computing (HPC). It has additionally expanded its US presence as a hedge in opposition to looming commerce wars.
“Through the quarter, we executed throughout a number of key areas in our strategic pivot to the U.S. and HPC,” Bitfarms CEO Ben Gagnon mentioned in a press release.
“The mining enterprise now supplies a secure, low-capex and free money stream basis for the Firm that positions us very effectively to develop and develop our U.S. belongings into HPC/AI knowledge facilities whereas nonetheless capitalizing on any potential Bitcoin upside in 2025 and 2026,” he added.
Miners are “diversifying into AI data-center internet hosting as a approach to broaden income and repurpose current infrastructure for high-performance computing,” Coin Metrics mentioned in a March report.
The pc {hardware} and electrical energy provides required for Bitcoin mining are additionally helpful for purposes requiring high-performance computing, together with AI use instances.
In March, AI computing supplier CoreWeave raised $1.5 billion in an preliminary public providing that valued the corporate at roughly $20 billion, reflecting sturdy demand amongst traders for corporations servicing AI purposes.
CoreWeave’s earnings for the previous quarter are scheduled for Might 14.
In April, Bitfarms secured a $300 million line of credit score from funding financial institution Macquarie to finance the enlargement of an HPC facility in Pennsylvania.
In January, the corporate bought a Bitcoin mining facility in Paraguay to Hive Digital, one other miner, for $85 million.
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