Bitfarms Ltd. (NASDAQ/TSX: BITF) delivered a big strategic update alongside its third‑quarter 2025 results on November 13, 2025, revealing booming revenue growth but a wider loss and a notable miss versus Wall Street expectations. At the same time, the company doubled down on its transformation from a Bitcoin miner into a high‑performance computing (HPC) and AI infrastructure provider, unveiling a major plan to convert its Washington State facility for next‑gen Nvidia GPUs. [1]
Key Takeaways
- Q3 2025 revenue from continuing operations rose to $69 million, up 156% year‑on‑year, but came in well below the roughly $83.1 million consensus. [2]
- Bitfarms posted a net loss from continuing operations of $46 million, or -$0.08 per share, versus a consensus loss of about -$0.02 per share. [3]
- The company closed a $588 million convertible notes offering and reported $814 million of liquidity (cash plus unencumbered Bitcoin) as of November 12, 2025. [4]
- Bitfarms announced a fully funded plan to convert its 18 MW Washington site to HPC/AI workloads by December 2026, designed to support Nvidia GB300 GPUs with advanced liquid cooling. [5]
- The stock dropped around 13% in pre‑market trading immediately after the release and was recently down about 6% intraday to $3.17. [6]
Q3 2025: Fast‑Growing Revenue, Deeper Loss
Bitfarms’ headline numbers show a company growing quickly but still in heavy investment mode.
Revenue and profit metrics
For the quarter ended September 30, 2025, Bitfarms reported:
- Revenue from continuing operations:$69 million, up 156% year‑on‑year. [7]
- Revenue from discontinued operations:$14 million, mostly from Argentina and Paraguay assets being exited. [8]
- Operating loss:$29 million, slightly better than the $31 million loss in Q3 2024, despite much higher depreciation and an impairment charge. [9]
- Net loss from continuing operations:$46 million, or -$0.08 per share, versus -$0.05 a year ago. [10]
- Adjusted EBITDA:$20 million, equal to 28% of revenue, up from $2 million (8% margin) in the prior‑year quarter. [11]
- Gross mining margin:35%, down from 44% in Q3 2024, reflecting higher costs and the evolving mix of the business. [12]
On the Bitcoin side, Bitfarms:
- Mined 520 BTC in the quarter from continuing operations.
- Achieved an average direct cost of $48,200 per BTC and a total cash cost of $82,400 per BTC, with average revenue per BTC of about $114,300. [13]
Those economics show the mining segment remains cash‑generative, but compression in gross margin hints at both industry‑wide pressure and the company’s shift toward data‑center‑style infrastructure.
A clear miss versus expectations
Heading into the report, Zacks’ consensus called for $83.1 million in Q3 revenue and a per‑share loss of $0.02. [14]
By comparison:
- Actual $69 million revenue was about 17% below that estimate.
- The -$0.08 loss per share was much wider than the projected -$0.02 loss. [15]
That shortfall explains why initial market commentary framed the results as a “big Q3 miss” even though year‑on‑year growth looked impressive. [16]
Strategic Pivot: From Bitcoin Mining to AI & HPC Infrastructure
The more important story for Bitfarms is no longer purely hash rate and mined coins. The company is methodically repositioning itself as a North American energy and digital infrastructure platform aimed at AI and other compute‑intensive workloads. [17]
Washington: 18 MW flagship HPC/AI conversion
On November 13, just minutes before the earnings release, Bitfarms issued a separate press release outlining plans to convert its Washington State facility into a dedicated HPC/AI site: [18]
- The existing 18 MW Bitcoin mining site will be fully refitted for AI workloads with up to 190 kW per rack.
- The facility is designed for Nvidia’s GB300 GPUs (part of the upcoming Vera Rubin generation) and will feature advanced liquid cooling.
- Bitfarms signed a binding, fully funded agreement worth $128 million with a large U.S. data‑center infrastructure provider to supply all critical IT equipment and building materials for the 18 MW build‑out.
- The project targets completion by December 2026 and aims for an industry‑leading power usage effectiveness (PUE) between 1.2 and 1.3, an efficiency level comparable with top‑tier hyperscale data centers. [19]
CEO Ben Gagnon emphasized that Washington will be a testbed for GPU‑as‑a‑Service and cloud monetization models, arguing that even a single site could ultimately generate more net operating income than the company has ever produced from Bitcoin mining alone. [20]
Panther Creek and Sharon: Building an AI‑ready campus network
Washington is just one piece of a broader AI infrastructure puzzle laid out in Bitfarms’ Q3 release: [21]
- Panther Creek, Pennsylvania
- Bitfarms converted its previously announced $300 million Macquarie credit facility into a project‑specific financing vehicle for developing the Panther Creek campus.
- The company has already drawn $50 million to secure long‑lead equipment and accelerate civil and substation works. [22]
- Utility PPL provided positive indications about converting 60 MW of existing interconnection rights into a firm energy service agreement, with the potential to expand power capacity beyond 500 MW over time. [23]
- Sharon, Pennsylvania
- Bitfarms acquired the Sharon property outright, moving from a long‑term lease to ownership.
- The campus currently runs 30 MW of Bitcoin mining, which will be repurposed for HPC/AI infrastructure.
- An additional 80 MW substation is expected online by year‑end 2026, bringing total capacity to approximately 110 MW. [24]
Across the portfolio, Bitfarms now claims:
- A 2.1 GW North American energy portfolio, including:
- 341 MW of energized capacity,
- 440 MW of secured contracted growth, and
- 1,360 MW of capacity under application. [25]
The common thread: locations with robust access to power and fiber, positioned to host large clusters of GPUs once AI demand justifies deployment.
Exiting Argentina & Paraguay: Cleaning Up the Legacy Footprint
To sharpen its North American focus, Bitfarms is stepping away from riskier jurisdictions:
- Operations in Rio Cuarto, Argentina are being abandoned after a halt in energy supply in May 2025 and persistent economic uncertainty.
- The Paso Pe, Paraguay operation is classified as held for sale.
In Q3 2025, these discontinued operations generated $14 million of revenue but produced a net loss of $35 million, driven largely by a $34 million impairment charge as assets were marked down to fair value less costs to sell. [26]
Short‑term, that hit the income statement; long‑term, it removes volatility tied to unreliable power and regulatory risk, while aligning the portfolio with the AI infrastructure story.
Balance Sheet: Convertible Notes, Liquidity and Bitcoin Treasury
The pivot to AI‑ready data centers is capital intensive. Bitfarms spent much of 2024–2025 bolstering its balance sheet.
Massive convertible raise and ATM program
Key financing moves highlighted in today’s report include: [27]
- Completion of a $588 million convertible notes offering, maturing in January 2031 and carrying a relatively low 1.375% interest rate.
- The conclusion of the company’s 2024 at‑the‑market (ATM) equity program, which ran from March 2024 to October 7, 2025. Over that period, Bitfarms issued about 165.1 million shares at an average price of $2.27, raising $375 million in gross proceeds (about $363 million net).
These moves significantly diluted existing shareholders but gave Bitfarms a war chest to fund data center builds, grid upgrades and long‑lead equipment.
Liquidity and Bitcoin holdings
As of November 12, 2025, Bitfarms reported total liquidity of approximately $814 million, consisting of: [28]
- $637 million in cash, and
- $177 million in unencumbered Bitcoin, equal to 1,827 BTC.
During Q3, Bitfarms sold 185 BTC at an average price of $116,500, bringing in about $22 million. In October, it sold another 100 BTC for $12 million, helping fund capex while still expanding its treasury. [29]
The company also launched a “Bitcoin 2.1” options program, selling short‑ and long‑dated out‑of‑the‑money call options on both its treasury BTC and future production. The goal is to offset production costs and extract more value per coin to feed its infrastructure build. [30]
Governance, Buybacks and a U.S. Pivot
Beyond the numbers, Bitfarms is reshaping its leadership and corporate structure in ways that matter for institutional investors.
Management & board changes
Recent updates include: [31]
- CFO transition: Long‑time CFO Jeffrey Lucas has retired. He is succeeded by Jonathan Mir, a capital‑markets veteran with more than 25 years of experience in energy infrastructure finance.
- Board refresh: Former Amazon Web Services executive Wayne Duso joined the board in August 2025, signaling a deeper push toward cloud‑style infrastructure expertise.
Share buybacks and redomiciling
Bitfarms also launched a share repurchase program starting July 28, 2025, authorizing purchases of up to 10% of the public float through July 27, 2026. So far, the company has bought back 7.8 million shares at an average price of $1.27, spending roughly $10 million. [32]
In parallel, the company:
- Established a second principal executive office in New York City, and
- Committed to adopting U.S. GAAP by year‑end 2025 as part of a broader plan to redomicile to the United States. [33]
That shift could eventually broaden the potential investor base and simplify comparisons with U.S.‑listed data‑center and AI infrastructure peers.
Market Reaction: Volatility After the “Big Miss”
Traders wasted no time reacting to the Q3 numbers and the Washington AI announcement.
- Pre‑market: Bitfarms shares dropped about 13% in early trading after the report, as highlighted by Seeking Alpha, which cited “softer‑than‑expected Q3 earnings” alongside the Washington HPC/AI conversion plan. [34]
- Midday: As of around 14:00 UTC, BITF was trading near $3.17, down roughly 6% from the prior close of about $3.38.
Analyst and data‑provider commentary shows a mixed setup:
- GuruFocus data indicates Bitfarms trades at a price‑to‑sales ratio of about 7.0 and a price‑to‑book ratio near 2.9, both above historical medians.
- A referenced target price of $4.41 and a recommendation score around 1.9 point to a “moderate buy” stance, while Zacks currently rates the stock a Rank 4 (Sell) heading into the print. [35]
- Volatility is high: Bitfarms’ beta around 5.0 and RSI near 39 suggest a stock that can swing sharply and is now approaching oversold territory on some technical gauges. [36]
In other words, the market is trying to price a capital‑intensive AI infrastructure story layered on top of a still‑volatile Bitcoin mining business.
What Today’s News Means for BITF Investors
Today’s slew of announcements leaves Bitfarms looking like a classic high‑risk, high‑reward transition story.
The bull case
Supporters of the stock will likely focus on:
- Explosive top‑line growth (156% revenue growth from continuing operations). [37]
- Improving cash profitability, with Adjusted EBITDA jumping to $20 million and margins expanding to 28%. [38]
- A deep pipeline of power‑rich sites in North America, including Washington, Panther Creek and Sharon, positioned for future AI data‑center deployments. [39]
- An $814 million liquidity cushion plus convertible and bank financing that, in theory, can fund much of the planned build‑out. [40]
If the company succeeds in signing long‑term AI/HPC customers at attractive rates, the earnings power of even a handful of fully built campuses could dwarf its historic Bitcoin mining profits.
The bear case
Skeptics will point out:
- Earnings miss and widening losses: Revenue fell well short of expectations, and the net loss from continuing operations nearly doubled year‑on‑year. [41]
- Execution risk: Building AI‑grade data centers on time and on budget is complex, and securing long‑term contracts with hyperscalers or enterprise AI users is far from guaranteed. [42]
- Leverage and dilution: The large convertible issuance and ATM share sales leave existing shareholders with more debt overhead and a much bigger share count to spread any future profits across. [43]
- Bitcoin and regulatory volatility: Even as Bitfarms pivots away from pure mining, BTC price swings, energy regulations and AI policy shifts could still whipsaw the business. [44]
Bottom Line
For November 13, 2025, the Bitfarms story is defined by two headlines:
- A noisy but important Q3 2025 earnings print that shows rapid revenue growth and improving cash metrics, but also a sizeable miss versus consensus and heavy losses.
- A bold acceleration of the AI/HPC pivot, anchored by the fully funded conversion of the Washington site to Nvidia‑class GPU infrastructure and backed by a sizable liquidity pool.
Whether BITF ultimately trades like a distressed Bitcoin miner or an emerging AI infrastructure play will hinge on what happens next: contract wins, build‑out milestones at Washington, Panther Creek and Sharon, and management’s discipline in deploying nearly a billion dollars of capital.
As always, this article is for informational and news purposes only and does not constitute investment advice. Investors should consider their own risk tolerance and do further research — including reviewing Bitfarms’ full Q3 2025 filings and risk disclosures — before making any decisions.
References
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