Bitfarms Shares Jump Despite $285M Net Loss in AI Pivot
Bitfarms (BITF) shares climbed 6.6% on Tuesday despite reporting a $284.5 million net loss for full-year 2025 – a result driven by falling Bitcoin prices, elevated cost of revenue, and digital asset impairments that collectively erased the company’s gross margin. The market’s reaction was not irrational. It was a deliberate forward-price of something the income statement cannot capture: an infrastructure business that no longer exists in the same form it did twelve months ago.
Call it the Pivot Premium. When institutional investors look past a nine-figure GAAP loss to bid a mining stock higher, they are pricing the option value of a rebuilt business model – not the quarter just reported. That dynamic is now central to how public miners are being valued, and Bitfarms’ Tuesday session crystallized it.
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Bitfarms Full-Year 2025 Earnings: Breaking Down the $284.5M Loss
The headline loss figure obscures a more complicated picture. Revenue grew 72% year-on-year to $229 million – a number that would signal momentum in almost any other context. The problem is cost of revenue came in at $248 million, producing a gross loss before a single dollar of overhead was allocated.
FY 2025 Results:
– Commercialization underway at Panther Creek, Sharon & Moses Lake
– Well capitalized for near-term site permitting & leasing
– US Redomiciliation & Rebrand (~April 1)
Call replay: https://t.co/5HoNUOBU56
Press Release: https://t.co/KhWOZXbEyk— Keel Infrastructure (@Bitfarms_io) March 31, 2026
General and administrative expenses rose year-over-year, compounding the operational drag. The most structurally significant line item, however, was the fair value movement on digital assets: a $50.5 million loss in 2025 against a $26 million gain in 2024 – a $76.5 million swing that reflects Bitcoin’s 46% decline from its October peak. A $28.2 million realized gain on digital asset sales partially offset that mark-to-market hit, but the net effect was material.
The company’s full-year results filing confirms Bitfarms still holds approximately $161 million in unencumbered Bitcoin – a balance sheet position that functions as both a legacy asset and a transitional buffer as the company winds down its mining operations. That figure matters: it tells investors the company has runway to execute the pivot without immediate capital market pressure.
The math on Bitcoin mining itself is already bad. Network difficulty has risen 58.5% since the April 2024 halving, compressing per-unit mining economics precisely as Bitcoin’s price retreated from cycle highs. Bitfarms’ gross loss is partly an industry-wide condition, not just a company-specific failure.
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Bitfarms AI Infrastructure Pivot: What the Keel Infrastructure Rebrand Actually Signals
In November 2025, Bitfarms announced it would wind down Bitcoin mining entirely – a move that sent shares down 18% at the time. Five months later, the same strategic decision is being rewarded. CEO Ben Gagnon framed the transition on Tuesday’s earnings call in terms that left little ambiguity: “No half-measures, no compromises, and in time, no Bitcoin. We built a new company.”
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Bitfarms still holds 1,827 $BTC but signaled plans to eventually SELL ALL remaining bitcoin.
The company is pivoting from bitcoin mining toward a 2.2 GW AI and HPC data center pipeline as it rebrands to “Keel Infrastructure.” pic.twitter.com/Yx7Kgc4QnG
— Coin Bureau (@coinbureau) March 31, 2026
That new company is being formalized. Bitfarms disclosed it has received shareholder approval to rebrand as Keel Infrastructure and to shift its legal domicile from Canada to the United States – a jurisdictional move that facilitates US institutional capital access and aligns the company structurally with the domestic HPC and AI data center market it intends to serve. The rebrand was expected to be executed Wednesday.
The pivot positions Bitfarms alongside a cohort of former miners – including Core Scientific, which has signed GPU colocation agreements with CoreWeave – that are repurposing power infrastructure for high-performance computing demand. The investment thesis is straightforward: miners own large blocks of power capacity in locations where new grid connections take years to permit. AI hyperscalers need that capacity now. The arbitrage is real, and institutional investors have already re-rated Core Scientific on that basis. Bitfarms, now Keel Infrastructure, is attempting the same transition from a smaller base.
What the market is pricing is not the 2025 income statement. It is the option on contracted HPC capacity, lower energy cost exposure relative to cloud-native AI infrastructure, and the possibility that the company’s existing site footprint commands a valuation premium as AI power demand continues to outpace supply.
Bitfarms Share Reaction: Why Investors Looked Past the Net Loss
A 6.6% single-session gain on a $284.5 million loss report is not short covering noise. It reflects a deliberate re-rating by investors who have already absorbed the mining business deterioration and are now assigning value to the infrastructure company being built in its place. The $161 million unencumbered Bitcoin position provides a tangible floor; the HPC pivot provides the ceiling narrative.
Source: Tradingview
The pattern mirrors what has already played out elsewhere in the sector. Mining-adjacent firms diversifying beyond their original compute model have consistently attracted incremental institutional interest even when near-term financials remain stressed – because the market prices the destination, not the transition cost.
Whether Tuesday’s move holds depends entirely on execution. The Pivot Premium is not permanent. It evaporates the moment a capacity milestone is missed, a hyperscaler deal falls through, or the rebrand fails to generate disclosed HPC revenue within the next two quarters. The next earnings cycle, under the Keel Infrastructure name, is where the re-rating either gets confirmed or reversed.
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