Bitfarms clocked a first-quarter net loss of $36 million, widening from a $6 million loss in the same period a year earlier, as the Bitcoin miner pivots from mining to high-performance computing for artificial intelligence applications.
The miner posted $67 million in sales for the quarter ended March 31, up 33% from the year prior. However, gross profit margin for Bitfarm’s mining operations declined to 43% from 63% year-over-year, the company said in its first quarter earnings release.
The lower margins reflect pressure from Bitcoin’s (BTC) April 2024 “halving” as well as volatility in Bitcoin’s price. Halvings occur every four years and cut the number of BTC mined per block in half, reducing Bitcoin miners’ profitability.
In the first quarter of 2025, Bitcoin’s spot price swung from more than $100,000 in January to less than $80,000 in March, according to data from Google