BITF Stock: Is Bitfarms a Value-Oriented Play on AI Infrastructure?

Founded in 2017 and headquartered in Toronto, Bitfarms [BITF] started out building and operating vertically integrated bitcoin (BTC) mining data centers across North and South America, including in Canada, the US, Paraguay and Argentina.

However, like other BTC miners, it has recently pivoted toward higher-performance computing (HPC) and artificial intelligence (AI) workloads. 

This shift was initially sparked by the most recent halving event, but has gained traction across the sector. To put it simply, crypto mining is very energy intensive, and many miners had already begun to build out sizeable energy portfolios when the AI tipping point occurred with the launch of ChatGPT. 

It was a no-brainer to turn their real estate and energy assets to AI, with demand looking likely to grow at a consistent and rapid rate. 

“The contracts associated with HPC/AI customers provide long-term, steady cash flows and earnings streams, while our bitcoin mining operations will continue to monetize bitcoin’s flexible upside potential,” CEO Ben Gagnon said when the pivot was announced at the start of 2025.

Speaking at the H.C. Wainwright 27th Annual Global Investment Conference earlier in September, Gagnon underlined that, while mining continues to cover all operating expenses and contribute to capex, no additional miner purchases or fleet expansions are planned.

Instead, the current fleet — leveraging low-cost electricity and high operational efficiency — is expected to deliver stable free cash flow through 2026 across most BTC pricing scenarios.

This pivot towards digital infrastructure has helped the stock significantly outperform BTC itself in recent weeks.

BITF stock is up 73.83% so far this year, although it has been falling from a 12-month high set on September 18, and remains far below the levels seen in 2021 and early 2022.

Q2 Earnings

Bitfarms reported earnings at the start of August.

It posted Q2 2025 revenue of $78m, up 87% year-over-year, with a gross mining margin of 45%, versus 51% in Q2 2024. 

Cash general and administrative expenses rose to $18m from $11m, reflecting its integrations of Stronghold Digital, which it acquired in March, and higher overheads. 

In Q2 the firm sold 1,052 BTC at an average $95,500, netting $100m, and in July it mined 231 BTC and sold 85 for $10m. Proceeds funded capex and market operations. As of August 11, holdings stood at 1,402 BTC. 

In Q2, Bitfarms submitted a master plan to advance the development of HPC/AI infrastructure at its Panther Creek, PA campus to Macquarie, and partnered with T5 Data Centers to the same end.

“Our North American energy portfolio positions Bitfarms to be a leader in HPC and AI infrastructure. With over 1GW in our Pennsylvania pipeline, anchored by our flagship Panther Creek campus which is in close proximity to Amazon [AMZN] and CoreWeave [CRWV] sites, we aim to capture significant market share in what is quickly emerging as a new AI infrastructure hub,” said CEO Gagnon. 

“With additional energy strategically located in data center hotspots in Washington and Quebec, we are building a diversified, unique and scalable North American platform of robust energy and fiber infrastructure that is attracting significant interest from prospective clients. Coupled with strong political support for data center development in these regions, our strategic vision and pivot to the US and to HPC and AI infrastructure positions us as a key player to meet surging demand in the AI industrial revolution coast-to-coast.”

Let’s unpack how Bitfarms compares to two firms on comparable journeys.

Mining to AI Infrastructure Pipeline: BITF vs HUT vs MARA

Hut 8 [HUT] has repositioned from pure bitcoin miner to “power-first” digital infrastructure provider, leaning into GPU/AI hosting through its Highrise AI/GPU-as-a-Service offerings and a multi-gigawatt development pipeline. 

Financially, it’s still small on revenue, posting $41.3m in Q2 2025, but boasts some $2.4bn in total assets. The company owns generation and real-estate assets that lower the incremental cost of hosting GPUs, and management is prioritizing modular data center builds that can switch between ASIC mining and AI/HPC workloads. Execution risk is a key consideration, but Hut 8 is one of the clearest “miner to AI host” transitions.

MARA Holdings [MARA] has likewise been expanding beyond bitcoin mining into data center and AI capabilities via strategic investments and deals, such as a recent agreement to buy a controlling stake in EDF’s Exaion. It runs a large fleet of mining sites and has one of the deeper bitcoin treasuries among miners.

Marathon’s play is scale plus partnerships: buy or build energy-proximate capacity, then lease power and rackspace for AI/HPC customers while continuing mining. That diversification lowers direct exposure to BTC price, but execution requires moving from commodity hosting to higher-margin, service-oriented contracts. Marathon’s market standing and cash flow give it an advantage, but return on investment (ROI) depends on securing long-term AI customers.

Source: Yahoo Finance

Of the three, Bitfarms looks like the more value-oriented play, given its relatively low P/S ratio. MARA’s high P/S ratio, by contrast, reflects its scale and diversification across mining and AI initiatives. Hut 8, meanwhile, boasts an aggressive growth forecast that could boost its future value proposition. 

In short, Hut 8 could be seen as the high-beta bet, Marathon the scale operator and Bitfarms the relative bargain for those cautious on AI timelines.

BITF Stock: The Investment Case

The Bull Case for Bitfarms

Bitfarms benefits from vertically integrated operations and access to low-cost power across North and South America, boosting margins in bitcoin mining. Its pivot into HPC and AI infrastructure could unlock high-margin revenue streams beyond crypto, diversifying earnings. Strong balance sheet, disciplined BTC sales and growing BTC holdings provide optionality and investor confidence. If AI demand scales, Bitfarms could capture early market share while maintaining energy-efficient operations.

The Bear Case for Bitfarms

Bitfarms faces margin pressure as electricity and hardware costs rise, evidenced by falling gross mining margins. Execution risk looms for the AI/HPC pivot, requiring significant capex and partnerships with uncertain ROI. BTC price volatility directly affects profitability, and regulatory uncertainty in multiple jurisdictions adds exposure. Competition from larger, better-capitalized miners and cloud providers could limit adoption of AI services, leaving Bitfarms reliant on increasingly commoditized cryptocurrency operations.

Conclusion

Bitfarms sits at the intersection of cryptocurrency mining and emerging AI infrastructure, offering both growth potential and execution risk. Its low-cost energy base and disciplined BTC strategy provide a foundation, but margin pressure and competition remain key challenges. Investors must weigh the upside of AI diversification against the inherent volatility of crypto and capital-intensive expansion.