Bitfarms Ltd posted a huge Q1 2025 net loss of $36 million, down from $6 million in Q1 2024. Although the company reported a 33% y-o-y revenue growth to $67 million, profitability was affected by lower rewards in Bitcoin and higher costs. The gross mining margin declined from 63% to 43%, reflecting declining efficiency in mining.
Operating losses similarly rose from $24 million to $32 million. Adjusted EBITDA declined to $16 million from $23 million. Rising general expenses, including $2 million in acquisition expenses, similarly helped contribute to the financial strain.
Bitfarms Ltd Targets High-Performance Computing
Bitfarms Ltd made a key strategic pivot toward high-performance computing (HPC) for the artificial intelligence (AI) workload. The switch comes after Bitcoin’s April 2024 halving, in which block rewards were reduced 50%. Such a structural alteration has diminished across-industry profitability.
To fund this transition, Bitfarms Ltd received $300 million in investment from Macquarie Group. The funds will be used to build its Panther Creek property in Pennsylvania, with approximately 500 MW of theoretical capacity. The company will also expand at its Sharon, PA facility.
New Strategy with Partnerships and Talent
Bitfarms Ltd is joining forces with Appleby Strategy Group and World Wide Technology to assess HPC readiness and hunt AI clients. It has also appointed James Bond as SVP of High-Performance Computing. These are a measured plunge into the growing AI and cloud infrastructure market.
Hypothetical infrastructure offers a smooth transition. Data centres built exclusively for mining can be easily repurposed for HPC use, and they have similar power and cooling demands. This allows Bitfarms Ltd to move into the new market without starting anew.
Bitfarms Ltd Struggles with Market Headwinds
Bitcoin mining is volatile. The company generated 693 BTC in Q1 2025, down from 943 BTC in Q1 2024. With Bitcoin trading between $80,000 and more than $100,000 during the quarter, top-line estimates remain vague. Nevertheless, Bitfarms Ltd holds 1,166 BTC, with some liquidity cushion.
The transition in HPC is viewed favourably by analysts but highlights risks—specifically capital costs and pressure of competition. Nevertheless, access to cheap energy and available infrastructure can provide Bitfarms Ltd. with a competitive edge.
Conclusion
Company is embarking on a high-risk turn. After incurring a significant Q1 2025 loss, the company is turning towards HPC to reduce dependence on volatile Bitcoin mining. Successfully making the move could stabilise revenues, unlock fresh growth, and reshape Bitfarms Ltd.’s market identity.
