BitFarms plans to cease its Bitcoin mining operations over the next two years and gradually transform into a high-performance computing data center centered on AI.
summary
- By 2027, BitFarms plans to shut down its Bitcoin mining operations and transform the site into an AI-centric data center.
- The Washington site will support up to 190 kilowatts per rack using Nvidia GPUs and is targeted for completion in December 2026.
Bitfarms will begin this transition from its Washington site, repurposing that facility for a new generation of compute-intensive workloads, the company said in a Nov. 13 announcement.
Scheduled to be completed by December 2026, the 18-megawatt Bitcoin mining facility in Washington will feature state-of-the-art infrastructure powered by Nvidia’s flagship GPUs and capable of supporting workloads of up to 190 kilowatts per rack with an advanced liquid cooling system.
Headquartered in Canada, the company has already secured its entire supply chain through a binding contract worth $128 million with a major multinational data center infrastructure provider based in the United States. As part of the agreement, the partners will provide all critical IT hardware and building materials needed to complete the conversion.
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“We believe there are compelling reasons to consider pursuing a GPU-as-a-Service or cloud monetization strategy, particularly in Washington. Despite being less than 1% of our total developable portfolio, we believe that converting just the Washington site to GPU-as-a-Service has the potential to generate more net operating income than we have ever generated from Bitcoin mining,” Bitfarms CEO Ben Gagnon said in an accompanying statement.
Gagnon expects Washington’s turnaround will provide the company with a “strong cash flow base” and help it wind down its “Bitcoin mining operations in 2026 and 2027.”
Bitcoin mining is a highly competitive market due to thin margins and capital-intensive maintenance, and readily available infrastructure and power contracts already give crypto miners an advantage over traditional data center entrants. As a result, many of these companies have retired their rigs and pivoted to AI and high-performance computing, especially after the halving in 2024, when block rewards were cut and mining economics tightened.
BitFarms’ mining revenues were already showing signs of stress by the first half of 2025 due to a significant compression in gross margins and rising production costs. The AI sector is expected to bring stronger recurring revenue and enterprise-grade demand, so BitFarms, like many of its publicly traded rivals, is looking to seize this opportunity.
Shareholders also supported this idea, with BitFarms stock performing extremely well through most of 2025 as the company doubled down on its focus on computing infrastructure and capitalized on the burgeoning AI wave.
Another motivation for Bitfarms is its weak financial performance over the past quarter. BitFarms’ net loss was $46 million, or 8 cents per share, less than analysts expected for a loss of 2 cents per share, even as sales rose 156% year-over-year to $69 million.
As previously reported, the company aims to raise $500 million through a convertible debt offering, which will allow it to fund its continued expansion efforts while minimizing shareholder dilution.
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