Bitfarms Drops After Missing Q3 Estimates and Announcing AI Shift

Bitfarms Ltd. (NASDAQ: BITF) experienced a sharp decline on Thursday, November 13, 2025, with shares dropping 13% in premarket trading following the release of disappointing third-quarter results. The company, which is transitioning from an international Bitcoin miner to a North American energy and digital infrastructure provider, reported Q3 GAAP earnings per share of -$0.08, significantly worse than the analyst consensus estimate of -$0.02. Revenue of $69.3 million also fell short of expectations, missing the $84.7 million consensus by a substantial margin.

The miss comes as Bitfarms pivots its strategic focus toward high-performance computing and artificial intelligence infrastructure, announcing plans to convert its Washington facility to support advanced AI workloads.

Weak Q3 Results Push Company Toward AI Transition

Bitfarms reported third-quarter revenue of $69.3 million from continuing operations, representing a 156% year-over-year increase but falling short of analyst expectations and declining from the prior quarter’s $77.8 million. The company posted a net loss of $46.3 million, or $0.08 per share, compared to a loss of $24.0 million in the year-ago period.

Operating loss narrowed to $29.0 million from $31.0 million year-over-year, while Adjusted EBITDA reached $19.6 million, well below the Visible Alpha consensus of $31.5 million but significantly improved from $2.2 million in Q3 2024.

CEO Ben Gagnon emphasized the company’s strategic transformation: “We continue to execute on our strategy to pivot from an international Bitcoin miner to a North American energy and digital infrastructure company.” The company announced plans to convert its Washington site to support high-performance computing and AI workloads, with completion targeted for December 2026.

This facility will feature infrastructure compatible with Nvidia GB300 GPUs and state-of-the-art liquid cooling systems. Bitfarms signed a binding $128 million agreement to supply critical IT equipment and building materials for 18 MW of gross capacity at the site.

The strategic shift reflects broader market dynamics as the company positions itself to capitalize on surging demand for AI infrastructure. Gagnon noted that “everything in our portfolio is being built to support Nvidia’s next generation Vera Rubin GPUs which are expected to ship in Q4 2026.”

He emphasized that with nearly twice the energy density of Nvidia’s Blackwell GPUs, existing data centers cannot support this next-generation hardware, positioning Bitfarms to address an emerging infrastructure gap.

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Mining Underperformance Adds Pressure to Shares

During the third quarter, Bitfarms earned 520 bitcoins from continuing operations at an average direct cost of $48,200 per BTC, falling short of the Visible Alpha estimate of 731 bitcoins. The total cash cost per bitcoin increased to $82,400, up from $77,100 in the prior quarter and $53,800 in Q3 2024.

The company’s gross mining margin declined to 35% from 44% in the year-ago period, reflecting rising production costs and operational challenges. Average revenue per bitcoin reached $114,300, up from $98,119 in Q2 2025.

As of 9:45 AM EST on November 13, 2025, BITF stock was trading at $2.82, down $0.35 or 11.01% from the previous close of $3.17. The stock opened at $2.73 and traded in a range between $2.72 and $2.95 during the session, with volume reaching 21.8 million shares against an average volume of 87.1 million.

The company’s market capitalization stood at approximately $1.55 billion. Year-to-date, BITF has gained 81.82%, significantly outperforming the S&P/TSX Composite index’s 24.85% return, though the one-year return of 4.09% lags the benchmark’s 23.34% gain.

The company’s financial position strengthened significantly during the quarter with the successful completion of a $588 million convertible notes offering at 1.375% interest due January 2031. As of November 12, 2025, Bitfarms reported total liquidity of approximately $814 million, comprising $637 million in cash and $177 million in unencumbered Bitcoin holdings.

CFO Jonathan Mir stated: “We now have substantial financial flexibility with $814 million in liquidity and an additional $200 million potentially available from the Macquarie facility, and we have a clear vision of how we’re going to best utilize these funds to advance our HPC/AI infrastructure build outs across North America.”

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.