Bitfarms Stock Up 5% on AI Pivot Despite $284M Net Loss

• Bitfarms reported a $284 million net loss for the fiscal year 2025 as it transitions into the AI sector.
• The company is officially rebranding as Keel Infrastructure to reflect its new focus on high-performance computing.
• Revenue surged 72% year-over-year to $229 million, though operating losses also expanded significantly.

Strategic Pivot to AI and HPC

Despite recording a substantial net loss, Bitfarms shares climbed over 5% on Tuesday. The company announced a complete shift in its business model, moving away from its legacy as a bitcoin miner toward becoming a provider of infrastructure for Artificial Intelligence (AI) and High-Performance Computing (HPC). CEO Ben Gagnon characterized this change as a deliberate transformation aimed at long-term growth in North American markets. Starting this Wednesday, the firm will operate under the new name Keel Infrastructure.

Financial Performance and Liquidity

Financial results for the year showed a mix of rapid growth and rising costs. While total revenue reached $229 million, the company faced an operating loss of $150 million, a sharp increase from the $28 million loss reported the previous year. These losses were largely driven by the costs of the transition and volatility in its bitcoin holdings, which are currently valued at approximately $161 million.

As of the end of March, the company maintains a strong liquidity position:

• Total liquidity of $520 million in cash and digital assets.
• $161 million in bitcoin currently held on the balance sheet.
• Plans to use these funds to finance development through the early stages of its new business model.

Future Infrastructure and Revenue Goals

The core of the new strategy involves leasing power-secured sites to large-scale computing clients. Keel Infrastructure is currently developing a 2.2 gigawatt pipeline across multiple locations, including Pennsylvania, Washington state, and Québec. While the company will continue mining bitcoin in the short term to maintain cash flow, it intends to exit the mining business entirely over time. Initial revenue generated specifically from AI operations is projected to begin as early as 2027.