As of 12:30 p.m. ET, Bitfarms (BITF +12.58%) is among the fastest-moving Bitcoin mining stocks in its core sector, surging 10.4% since yesterday's close.
NASDAQ: BITF
Key Data Points
Today's move aligns closely with that of CleanSpark (CLSK +12.27%), which is continuing to rally after the company posted incredibly robust earnings earlier this week. CleanSpark's results appear to be providing the spark (so to speak) for investors who are curious to understand just how powerful a catalyst transitioning away from cryptocurrency mining toward AI and cloud computing can be.
That's perhaps even more prescient a concern for other companies in this sector (such as Bitfarms) looking to strengthen their top and bottom-line results.
Let's dive into why investors in Bitfarms are buying into the narrative that this company's upcoming earnings report could resemble CleanSpark's more closely than its own recent disappointing earnings released two weeks ago.
Future earnings growth is the real story for the crypto mining sector
Source: Getty Images.
What's in the past is in the past, at least for crypto mining companies that are rapidly shifting their efforts to become companies focused on capitalizing on the surging demand for additional computing capacity within the AI, machine learning, automation, cloud, and data center sectors.
Bitcoin mining revenue is so 2024, as the kids would say. Companies like CleanSpark (and Bitfarms, more recently) have implemented a strategic pivot, moving much of their current high-performance computing capacity away from Bitcoin mining and toward what Bitfarms and its peers believe could be significantly more profitable: supporting HPC/AI workloads.
In a recent statement released by Bitfarms in conjunction with its disappointing earnings, the company discussed its plans to transition a Washington site to support such workloads. The company's CEO stated, "Despite being less than 1% of our total developable portfolio, we believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining, providing the Company with a strong cashflow foundation that could fund opex, G&A, and debt service and contribute to capex as we wind down our Bitcoin mining business in 2026 and 2027. We look forward to providing more updates on our Q3 and Q4 2025 calls."
Therefore, we'll have to wait another quarter for an update. But given CleanSpark's impressive traction thus far, investors are clearly taking the hint that Bitfarms' recent shift could be much more profitable than they initially thought. In other words, today's move in BITF stock does appear to be warranted, at least in my view.
