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Bitfarms said it plans to shift its Bitcoin mining sites over the next two years and convert them to power AI, starting with its major site in Washington.
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Bitfarms’ stock has plunged after the company announced it would be shuttering its Bitcoin mining operations over the next two years and converting them to artificial intelligence and high-compute data centers.
The company said on Thursday that its 18-megawatt Bitcoin (BTC) mining site in the US state of Washington will be the first to be fully converted to support AI and high-performance computing, with completion expected in December 2026.
“Despite being less than 1% of our total developable portfolio, we believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining,” said Bitfarms CEO Ben Gagnon.
He added the conversion would help the company as it winds down its Bitcoin mining business in 2026 and 2027.
Bitfarms’ crypto mining rivals have also begun to shift some operations toward AI as the sector has boomed. Earlier in November, Bitcoin miner IREN signed a multi-year $9.7 billion deal with Microsoft to give the tech giant access to its AI compute.
AI “best opportunity” for most US Bitcoin miners: CEO
Gagnon told investors on an earnings call that Bitcoin miners are likely to “rotate out to lower and lower cost jurisdictions” as the difficulty and cost of mining the cryptocurrency rise.
“One of the big dynamics that is taking place is that the public miners represented almost a third of the entire network, and they all seem very keen on moving over to the higher economics associated with HPC and AI,” he added.
Gagnon said that Bitcoin mining has started to see major growth in the Middle East, Africa and Russia and added that “the best opportunity for most miners in the United States really is this transition to HPC and AI.”
“The economics are really going to drive that forward because the US is the best market to invest in for HPC and AI, whereas Bitcoin mining is largely location-agnostic,” he said. “It’s happy to go to cheaper locations, higher-risk locations, more remote locations than HPC and AI is.”
Gagnon added that the opportunities for Bitfarms to move its Bitcoin mining elsewhere “are really few” and not “a great use of management’s resources or time.”
This article first appeared at Cointelegraph.com News
