Key Points
- Bitfarms shares rose despite $284.5 million net loss driven by mining pressures and Bitcoin decline.
- Investors are pricing in transition toward AI and HPC infrastructure business.
Bitfarms shares gained 6.6% on Tuesday even after reporting a $284.5 million net loss for full-year 2025.
The loss stemmed from weaker Bitcoin prices, high operating costs, and digital asset impairments that eliminated gross margin.
Revenue increased 72% year-over-year to $229 million.
However, cost of revenue reached $248 million, resulting in a gross loss before administrative expenses.
General and administrative costs also rose during the year.
A $50.5 million fair value loss on digital assets, compared to a $26 million gain in 2024, reflected a sharp decline in Bitcoin prices from their prior peak.
A $28.2 million realized gain from digital asset sales partially offset those losses.
The company reported holding approximately $161 million in unencumbered Bitcoin, providing liquidity as it transitions its business model.
Industry conditions have also pressured miners.
According to Network difficulty data, mining difficulty has risen significantly since the April 2024 halving, compressing margins as Bitcoin’s price retreated.
Shift Toward AI and High-Performance Computing
In November 2025, Bitfarms announced plans to exit Bitcoin mining operations.
Shareholders later approved a rebrand to Keel Infrastructure and a change in legal domicile from Canada to the United States.
The transition is aimed at repurposing existing power infrastructure for high-performance computing and artificial intelligence workloads.
The company is positioning itself to supply large-scale power capacity to data center operators seeking faster deployment timelines.
Other former mining firms have pursued similar strategies, repurposing energy assets for AI-related demand.
Access to substantial grid capacity in permitted locations has become a competitive factor as hyperscale computing requirements expand.
Investor Reaction and Valuation Dynamics
The positive market reaction suggests investors are focusing on the company’s future infrastructure plans rather than the reported annual loss.
The retained Bitcoin holdings provide balance sheet flexibility while the company develops high-performance computing capacity.
Market participants appear to be valuing the potential for contracted HPC revenue and improved energy utilization.
Future earnings reports under the new corporate structure will indicate whether execution aligns with those expectations.
