Bitfarms clocked a first-quarter web lack of $36 million, widening from a $6 million loss in the identical interval a 12 months earlier, because the Bitcoin miner pivots from mining to high-performance computing for synthetic intelligence functions.
The miner posted $67 million in gross sales for the quarter ended March 31, up 33% from the 12 months prior. Nevertheless, gross revenue margin for Bitfarm’s mining operations declined to 43% from 63% year-over-year, the corporate stated in its first quarter earnings launch.
The decrease margins replicate strain from Bitcoin’s (BTC) April 2024 “halving” in addition to volatility in Bitcoin’s value. Halvings happen each 4 years and minimize the variety of BTC mined per block in half, lowering Bitcoin miners’ profitability.
Within the first quarter of 2025, Bitcoin’s spot value swung from greater than $100,000 in January to lower than $80,000 in March, in keeping with information 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 situations by investing in high-performance computing (HPC). It has additionally expanded its US presence as a hedge in opposition to looming commerce wars.
“Throughout the quarter, we executed throughout a number of key areas in our strategic pivot to the U.S. and HPC,” Bitfarms CEO Ben Gagnon stated in an announcement.
“The mining enterprise now supplies a secure, low-capex and free money movement basis for the Firm that positions us very nicely to develop and develop our U.S. belongings into HPC/AI information 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 option to increase income and repurpose current infrastructure for high-performance computing,” Coin Metrics stated in a March report.
The pc {hardware} and electrical energy provides required for Bitcoin mining are additionally helpful for functions 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 robust demand amongst buyers for firms servicing AI functions.
CoreWeave’s earnings for the previous quarter are scheduled for Could 14.
In April, Bitfarms secured a $300 million line of credit score from funding financial institution Macquarie to finance the growth of an HPC facility in Pennsylvania.
In January, the corporate offered a Bitcoin mining facility in Paraguay to Hive Digital, one other miner, for $85 million.
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