Major Bitcoin Mining Firm Pivoting To AI, Plans To Fully Abandon Crypto Mining By 2027 As Miners Convert To AI En Masse — Bitfarm To Leverage 341 Megawatt Capacity For AI Following $46 Million Q3 Loss

Major Bitcoin mining firm Bitfarms has announced that it will transition its business from cryptocurrency to AI data center services by 2027. Although it is not the largest crypto mining firm in the US, it still has a large operation with 12 data centers dedicated to Bitcoin mining. according to decryptThe company currently has 341 megawatts (MW) of energy capacity, which it can leverage to deploy several thousand Nvidia GB300 NVL72 server racks.

“We continue to execute on our HPC/AI infrastructure growth strategy with a fully funded supply chain and plan to convert our Washington site to support the Nvidia GB300 with state-of-the-art liquid cooling,” Bitfarms CEO Ben Gagnon said in a statement. decrypt“Despite accounting for less than 1% of our total developable portfolio, we believe converting our Washington site to GPU-as-a-Service could potentially generate greater net operating income than that generated from Bitcoin mining,”

Bitfarms reported a net loss of $46 million during its third quarter earnings call, which is a nearly 91% year-over-year increase in net losses from 3Q2024. Although Bitcoin reached all-time highs in early October, its volatility meant the company could not consistently rely on it for its operating costs. Additionally, its new T21 mining rig did not perform as expected, leading to a 14% reduction in its hashrate guidance for 1H25.

Concurrent with plans to convert its Washington data center, the company also converted a $300 million Macquarie loan facility into financing for its Panther Creek, Pennsylvania data center with a potential capacity of at least 350 MW. The site, which connects to the company’s 1.3-GW energy pipeline, could potentially make it one of the bigger players in the AI data center industry.

At the moment, Bitfarms has 341 MW of energy capacity, which means it does not have to negotiate with electricity providers and local governments to acquire more electricity for its data centers. This will help them avoid the power bottleneck that other hyperscalers like Microsoft are experiencing, with its CEO, Satya Nadella, saying that the company has AI GPUs sitting idle in inventory because there aren’t enough hot shells to plug into them.

This pivot will help Bitfarms capitalize on the huge demand for AI processing. However, it also carries greater risks, especially when many experts are saying that the AI industry is already in a bubble. With investments ranging from crypto mining to fully shifting to AI data centers expected to cost hundreds of millions, if not billions of dollars, an AI industry crash could potentially bring down the company and take down the lending institution along with many other companies, leading to trillions in losses.

Google Preferred Source

to follow Tom’s Hardware on Google NewsOr Add us as a favorite sourceTo get our latest news, analysis and reviews in your feed.

Major Bitcoin mining firm pivoting to AI, plans to fully abandon crypto mining by 2027 as miners convert to AI en masse — Bitfarm to leverage 341 megawatt capacity for AI following $46 million Q3 loss

Like this:

Related

Leave a Comment Cancel reply

Share this:

Like this:

Related

Leave a Comment Cancel reply