Bitfarms to Convert 18MW Bitcoin Mine into AI Data Hub by 2026
Bitfarms, a Canadian Bitcoin mining outfit, has a surprise for investors. Over the next couple of years, they'll be winding down...
Quick overview
- Bitfarms is transitioning from Bitcoin mining to high-performance computing centers focused on AI, starting with their Washington facility in 2026.
- The company has secured a $128 million deal for necessary hardware and aims to create a GPU-as-a-Service enterprise that could generate more income than their current mining operations.
- Financial pressures, including declining margins and rising costs in Bitcoin mining, have driven this strategic pivot towards AI and GPU services.
- Investors are optimistic about Bitfarms' future, as their shares have performed well amid the growing demand for enterprise computing solutions.
Bitfarms, a Canadian Bitcoin mining outfit, has a surprise for investors. Over the next couple of years, they’ll be winding down their cryptocurrency operations in favor of high-performance computing centers geared toward AI. Starting at their Washington facility, an 18 megawatt site which currently does Bitcoin mining, things are set to get a major overhaul come 2026.
By December of that year, the site will be repurposed with state-of-the-art Nvidia GPUs capable of handling heavy workloads, up to 190 kilowatts per rack. The company has a $128 million deal with a US-based data centre provider to back the whole thing and ensure they get all the hardware and materials they need.
Bitfarms CEO Ben Gagnon reckons the potential upside is enormous. ‘We reckon we can turn our Washington site into a GPU-as-a-Service enterprise which could bring home more net operating income than our whole Bitcoin mining operation has ever done, despite being less than 1% of our property portfolio.’
Financial Pressures Drive the Pivot
Bitfarms made the switch – partly due to smaller margins and escalating costs associated with Bitcoin mining. The first 6 months of 2025 saw a steep decline in gross margins and rising production costs. And then there was the 2024 Bitcoin halving – and with it another reduction in block rewards, further squeezing the economics of mining.
🔥 $BITF — SHORT TERM PAIN, LONG TERM MONSTER 🔥
Everyone’s focused on the EPS miss.
I’m focused on the transformation.Bitfarms is doing what every miner eventually has to do:
pivot from pure BTC mining into AI/HPC — the REAL growth engine of the next decade.Here’s what…
— Johhnywalker (@johhnyWalkerAZ) November 13, 2025
Some of the key financials to keep an eye on are:
- Bitfarms lost $46 million, or 8 cents a share, which was a lot worse than what the analysts were forecasting
- Revenue more than doubled year on year to $69 million
- They also plan on raising $500 million through convertible notes to help fund their expansion plans
The switch to AI and GPU-as-a-Service is expected to give them a better recurring revenue stream and much stronger enterprise demand, putting Bitfarms alongside the rest of the pack of miners switching over.
AI Opportunity Outpaces Crypto
AI and High Performance Computing are luring companies that used to be exclusively crypto miners into the fold, thanks to available infrastructure, good power deals, and solid enterprise demand. Even just converting one site could cover all of Bitfarms‘ costs through 2026 and 2027 and help them shut down their mining operation for good.
Some of the perks of the Washington conversion are:
- AI workloads get to run on high-capacity GPU clusters
- Liquid-cooled racks are good for 190 kilowatts per unit
- Higher net operating income than Bitcoin mining – the holy grail
Investors seem confident. Bitfarms’ shares have performed well so far this year, as they doubled down on AI infrastructure and took advantage of the booming demand for enterprise computing solutions – and the profits are rolling in.
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