Bitfarms clocks loss amid AI pivot
Bitfarms reported a first-quarter net loss of $36 million, up from a $6 million loss a year earlier, as it shifts focus from Bitcoin mining to high-performance computing (HPC) for AI applications. Sales increased by 33% to $67 million, but gross profit margins for mining operations fell to 43% from 63% year-over-year due to pressures from Bitcoin's upcoming halving and price volatility. Bitcoin's price fluctuated between over $100,000 in January and below $80,000 in March, currently trading above $103,000. Bitfarms is investing in HPC and expanding its U.S. presence to mitigate trade war risks. The company secured a $300 million credit line for HPC expansion in Pennsylvania and sold a mining facility in Paraguay for $85 million. Miners are diversifying into AI data-center hosting to enhance revenue and utilize existing infrastructure.
