Bitfarms has announced a major strategic shift, planning to shut down its Bitcoin mining operations over the next two years. The company will gradually convert its facilities into high-performance computing (HPC) data centers tailored for the artificial intelligence (AI) sector.

The Washington Pilot Project

The transition will kick off at the company’s 18-megawatt facility in Washington. According to a November 13 announcement, the site will be repurposed to handle a new generation of compute-heavy workloads. The project, targeted for completion by December 2026, will feature state-of-the-art infrastructure powered by Nvidia GPUs and advanced liquid cooling systems capable of supporting up to 190 kilowatts per rack.

To facilitate the conversion, the Canada-based company has secured a $128 million binding agreement with a large U.S. multinational data center provider. This deal ensures the full supply chain for all critical IT hardware and building materials required for the upgrade.

Bitfarms CEO Ben Gagnon explained that the pivot is expected to be highly lucrative. He stated that converting just the Washington site to a GPU-as-a-Service model could potentially generate more net operating income than the company has ever produced from Bitcoin mining. Gagnon anticipates that this new venture will create a strong cash flow foundation to support the complete wind-down of its mining business in 2026 and 2027.

A Broader Industry Trend

Bitfarms’ decision reflects a wider trend among cryptocurrency miners. The Bitcoin mining industry has become intensely competitive, with thinning profit margins and high capital costs. The 2024 halving event, which cut block rewards in half, further tightened mining economics and pushed many firms to explore new revenue streams.

With existing infrastructure and power contracts, crypto miners are well-positioned to pivot to AI and HPC. Bitfarms was already showing signs of financial stress in the first half of 2025, with sharply compressed gross margins and soaring production costs. The company’s recent financial results underscored these challenges, posting a net loss of $46 million despite a 156% year-over-year revenue increase to $69 million.

The move has been well-received by investors, with Bitfarms’ shares performing strongly through most of 2025 as the company capitalized on the booming AI wave. To fund its expansion, Bitfarms is also looking to raise $500 million through a convertible senior notes offering, aiming to minimize shareholder dilution while financing its ongoing transformation.